2013 - New strategy of the Port of Gdansk
Success appreciates hardworking optimists

08.01.2013

For centuries now, natural assets of the sea port have made Gdansk immune to crises lurking not only in the far distant world but also over the economies of the Baltic Sea Region. At the end of 2012, notwithstanding the managerial staff turmoil and the thickening atmosphere around port taxes, Gdansk reported its third highest throughput record ever. The volume nearing 27 million tones - says PGA SA Sole-Director Board of Directors Jerzy Melaniuk - is the one we can soon double...

- We are going to attain this goal by meeting the assumptions defined in previous port development strategies, which, once updated, shall be subject to corporate assessment. We must, by all means, meet the expectations to create a big container terminal, launch the PERN investment and find investors for the unimproved land of the port and liven up the Westerplatte Ferry Terminal, among other activities.

- We believe that the issue of the container terminal extension will soon be resolved. That is why, as is true of our day to day talks with management of "Port Połnocny Co.Ltd" on the dynamics of the Sea-Invest Group Bulk Cargo Terminal construction, we discuss with DCT managers directly on everyday basis too. We have a consent of ownership for making the land available for the extension of DCT without a tender procedure. Our partners are facing a challenge to provide financing for the terminal extension, as a target throughput volume of 5 million TEU is a parameter we wish to attain as soon as possible. PGA SA, within its possibilities and competences, will do its best to complete the extension of the container base of the port against all odds. We hope that all the concerns discussed be ultimately solved by 31st January 2013. If DCT fails to boost its capacity it will automatically start to shrink. The development of the port container handling capacity in the port of Gdansk is our utmost priority.

- Within a year's time, we want to conclude an appropriate agreement to complete preparations for the project of developing the eastern part of the ore pier. On 7th January, we issued a tender enlarging the area offered by further 5.5 hectares (to 23.5 hectares in total). We are also expanding the function of the terminal to be built there so that it can handle all kinds of cargo but liquid fuels or oil derivatives.

- We are determined to halt the run of misfortune that the Westerplatte Ferry Terminal, beautifully located but suffering from adverse technical conditions for navigation, has been struggling against. We are now holding talks with six entities interested in this facility, both with respect to passenger- and cargo traffic.

The PERN 'Przyjazn' SA investment, clearly inspired by the original concept from the end of the 60s and the beginning of the 70s of creating a significant liquid fuel handling and storage base for the Baltic in Gdansk, is the priority one at the moment. And finally the conditions are favourable. PGA SA, having recently signed a preliminary agreement with the partner from Plock, envisages concluding a lease agreement for 28 hectares still in the first quarter of 2013. The parties interested in the quick completion of the enterprise are now waiting for corporate consents only. Also in this case PGA SA offered its partners from Plock full technical support and advice on the implementation of this complex investment across all its stages, from drawing the engineering concept and designing through to implementation proper.

- Completion of these projects - continues chairman Jerzy Melaniuk - practically means that the basic possibilities of extending the handling infrastructure capacity in the deepwater part of the port have been explored. Poland's economy, however, sets new tasks for the seaports, which the latter can fulfil to the best of their ability in given conditions. Accordingly, it is the revival of the Central Port concept that should become the basic element of the port of Gdansk strategy. Based on the Westerplatte headland protruding into the Gulf of Gdansk, applying state-of-the-art engineering technologies for the construction of hydrotechnical structures and without doing harm to landscape or natural environment, we are going to develop technical and economic grounds for the construction of the port with all the 21st century trimmings. We also hope that, owing to very close collaboration with the Maritime Office, the idea of building the so-called port of refuge will be included in this project as well.

This new investment strategy is and will be subject to cooperation with the Ministry of Treasury within the realms of better use of the access to the sea. The cooperation bring about answers to questions of paramount importance to the country economy, pertaining to the conditions of linking the port's developmental capacity with its transit function, to the areas that have to upgraded or to the areas for new investments. As a vital link in the logistic chain, the port is mostly assessed from the "from the water" angle: its deep and safe fairway, sufficient turning basin, comfortable quay, efficient loading and unloading equipment, and finally time and work organization plus friendly attitude towards each partner. All this adds up to the assessment criteria for the port operations and its role in the trade exchange. Meeting strict requirements set by worldwide standards requires continuous investments in the port infrastructure. The pace of its upgrading also needs to match that of the development of its environment. There are a few new road and logistic investments carried out by the municipality of Gdansk in close vicinity, which open up fabulous prospects to the port. We are going to make the most of it.

- In the development strategy with the turning point of 2014-2025, which we are beginning to define, we need to adopt a completely new approach to the Gdansk port. Apart from the continuation of the basic tasks and concepts, it will also include a programme of maintaining and extending the existing infrastructure, which has either been neglected for years or requires upgrading. We have a new dynamic repair and investment plan for 2013, only recently presented to the Supervisory Board. It contains 78 tasks of the total value exceeding 70 million zlotys. In four "urgency groups", the plan concerns task priorities, a hierarchy of strategic significance as well as a dynamics of the projects stretching over two consecutive years - all this depending on the financial resources available. We should bear in mind the controversy around the port taxes payables. We hope that we will soon find a solution that will make it possible for the port to avoid postponing the implementation of any part of the plan.

- Along with the current plan we are developing a big development programme, worth over 600 million zloty, for profitable quays of the Inner Port. Here again we assume that, should we not win the EU funds, we will reschedule the date of completion of the tasks that have to be performed anyway. For It is our duty - maintaining and developing the infrastructure - that has to be perform systematically every year. Therefore, although the distribution of the EU funds is still a big unknown, we believe that our projects will fit into the 2014-2020 emission: "improvement in the port accessibility" and "improvement of the public port infrastructure". We are applying for a support for the dredging and regulating of the fairway and for upgrading of the Obroncow Poczty Polskiej, Mew, Oliwskie, Przemyslowe, Zbozowe, Wisloujscie, Dworzec Drzewny and Szczecinskie Quays as well as the Ore Pier in the Outer Port. Another important project is that of extending and upgrading of the road and railroad network for the deepwater terminals.

- As it is a very complex and costly programme, and we are aware of how the applications are qualified by the EU, we wish to ensure alternative financing paths. We have introduced a new procedure to appoint a privatisation advisor, and, as a result, enable us to find a partner that would eventually take over the shares of the Port of Gdansk Cargo Logistics Ltd. We would like to finalise this process by the end of 2013. With equally great enthusiasm we also take up anew the initiative of locating a heat and power generating plant in the port area, which would use biomass partly delivered by sea. We hope to sign an appropriate agreement within the next few months' time. If the EU subsidies prove to be smaller than expected, we will try to inscribe the port of Gdansk into the concept of the recently registered 'Polish Investments' Company. The latter holds a substantial package of transport projects.
It is very likely that also this manifestation of economic activation in the country will prove a suitable space for the development of the port of Gdansk. After all, we have good current performance and excellent prognosis to support our optimistic outlook.
Estimating the prognosis, we are sure that no crisis is threatening us, and the port of Gdansk - the oil and container mogul of the Baltic - can get ready for... fat years.
It is enough to want and know how to help success, as the latter appreciates hardworking optimists...

Janusz Kasprowicz
PGA SA PR Officer