The Implementation of the Largest Investment in the Port of Gdansk

30.09.2004

The contract signed in January 2004 between the Port of Gdansk Authority SA and the British consortium Deepwater Container Terminal Gdansk SA entails the introduction of new quality into the Port of Gdansk. As a result of the construction of the biggest in Poland deepwater container terminal, whose cost is estimated at USD 175 million, its handling capacity, already in phase I, will total 500 thou. TEU a year.

To recall the facts: the new terminal will be constructed in the Northern Port next to the already existing fuel and coal terminals and ore pier. The new pier will jut out into the Gulf of Gdansk, which entails not only an easy access from the sea but also the possibility of handling Panamax size vessels with draft up to 15 metres. The pier will be founded on piles and its construction will be filled in with the excavated material. Overhead traveling cranes and other cargo handling equipment will be placed on the pier; containers will be also stored there. Two berths are to be constructed, one of which is going to be of a ro-ro type. If necessary, the third berth together with the storage yard for containers will be constructed.

It is assumed that the first stage of the construction works will take 46 months, but the DCT expects that ships will be able to call at the terminal already after 28 months.

The co-operation between the British investor and the Port of Gdansk Authority SA is described by Andrzej Kasprzak, President of the Board of the Port of Gdansk Authority SA in the following way:

We are in a regular contact with the representatives of the British investor and our co-operation is developing very well. The complexity of the project should be emphasized, both in the context of the presently planned investment and its potential future development. Therefore the key problems connected with the design, construction and utilization of the terminal have been consulted by the investor with prominent experts from the USA, South Africa, Europe, including the Baltic Sea Region.

The last six months have brought up many issues concerning planning and construction works such as an analysis of ground, waves' motion and winds, research on road and railway connections, power demand, arrangement with the Harbor Board, Border Guard, the management of the Customs and Planning Office, compatibility with the city development plan, particular solutions concerning the construction of the pier and its facilities (office buildings, warehouses and repair shops), the evaluation of the equipment deliverers and the personnel requirement etc.

All the time the investor is also conducting market research with the purpose to confirm assumptions of the business plan concerning the interest of ship-owners in Gdansk terminal and the inflow of goods. As we are informed by Mr. James Sutcliffe, President of DCT Gdansk SA, according to the insight gained into the situation, the planned volume of the cargo handled in the first year of the terminal's operation is already 100 thou. TEU bigger than the initially assumed volume. This prognosis has been confirmed by a reputable consulting company, which has conducted an independent research on the container traffic via Poland.

In the nearest future the investor will submit applications for design approval to Municipality of Gdansk and Provincial Governor's Office. The DTC SA has also covered a significant part of expenditure on the works carried out at the stage preceding the initiation of financing by banks.

At the beginning of September five major contractors are to be invited to participate in the tender according to the procedures recommended by the European Investment Bank.

As the investor assures - adds Mr. Kasprzak - negotiations with European banks proceed according to the contract, while final financial conditions are expected to be settled at the end of September. Since the pace of works is appropriate, there is every indication that the construction of the container terminal in the Port of Gdansk will commence really soon.