Container expansion at the Port of Gdansk

13.05.2002

May 13, 2002, Gdansk - Marian Switek, President of the Board of Port of Gdansk Authority SA, is pleased to announce that DCT Gdansk SA, a company formed by leading port and container management consortium in the UK with worldwide experience in container terminal operations and design (i.a. Felixstowe, Thamesport, Malta, Dubai, Singapore, Shanghai), has now completed negotiations with the Port of Gdansk Authority to construct and operate a deep sea container terminal in the deepwater Northern Port of Gdansk. This team is headed by James Sutcliffe as CEO. Mr Sutcliffe is Chairman of the Sutcliffe Group, one of the oldest shipping and stevedoring groups based in the UK (est. 1862), who have been directly involved in general cargo and container port operations. It is anticipated that this facility (DCT Gdansk) will form part of the Freeport designation for Gdansk.

James Sutcliffe stated that "Phase 1 of the $ 170M deep water container terminal will provide two berths capable of handling Panamax size vessels, and one berth also providing a RO/RO facility. The terminal has an initial design capacity to handle 500,000 teu (Phase 1), with a maximum capacity of 1M teu once the third berth (Phase 2) comes on stream. The terminal has excellent road and rail connections to the boundary of the initial 30 hectare site which will enable distribution throughout Poland and neighbouring Countries. The new suspension bridge over the Martwa Wisla adjacent to the new Terminal will provide fast access to the new A1 motorway which is also due to start construction this year. The Port of Gdansk is the easternmost ice free port in the Baltic, enabling 24/7 continuous year round working. It is its favourable location that was one of the main reasons why DCT Gdansk SA decided to invest in the container terminal in this part of Europe."

Added James Sutcliffe: "We have drawn together some of the very best people in the container port industry. Our group is very excited by the prospect of developing this facility within the Port of Gdansk. We have worked very hard to reach this stage. Subject to further discussions with the Treasury Ministry and the Ministry for Infrastructure to enable us to proceed with the pre construction activities and to build the facility we estimate the new DCT Terminal at Gdansk could be completed within 28 months from the start of the building works. Obviously the sooner that we can start the sooner we can welcome our first vessel to this important new terminal."

Said President Marian Switek: "Further developments of DCT Gdansk SA include up to four new RO/RO berths to support ferry and feeder traffic throughout the Baltic region. In addition to a cruise terminal a logistics park is also being considered, in conjunction with the City of Gdansk, to support the expansion of services throughout the terminal, which in turn will underpin the job creation opportunities."

Continued James Sutcliffe: "We think DCT Gdansk will be a positive catalyst for new employment in the area. The construction and development of the new terminal will generate a substantial number of new jobs in the area in addition to a permanent staff of over 370 by 2009 to service this new facility. The proposed logistics park, ferry operations and cruise terminal will significantly add to this figure. Our conservative estimates show from previous experience that for every one job created on the terminal between 5 and 7 will be created in support services. Further, based on existing deep sea container ports, infrastructure development could provide up to 2000 new job opportunities in Gdansk.

"In summary, as well as providing the only independent deep sea container port for Poland, DCT Gdansk will act as a conduit for goods to be transferred by ferry throughout the Baltic and by road and rail south into neighbouring countries. Poland's imminent membership of the EU provides a platform for further expansion and the integration of container logistic systems throughout the region. Substantial inward investment from foreign manufacturing businesses will be encouraged to locate in this part of Poland as a natural consequence of improving the transportation infrastructure."

Concluded President Marian Switek: "Apart from these obvious benefits for the regional and national economy, the DCT Gdansk project may also be viewed as a direct response to the European Commission's call for breaking existing monopolies in the port services sector, as advocated in its 'Ports Package' and Port Services Directive, which acquires special importance in view of Poland's joining the EU in 2004."