The Port Free Zone in the Port of Gdansk after 1^st May 2004

30.09.2004

"The Polish Transport Journal" no. 38, 15^th September 2004

The Port Free Zone has been operating for the past eight years. Especially important for its functioning is this year because of Poland joining the European Union and resulting from this fact changes in customs regulations, which are important for the structure of cargo handled and the range of the PFZ's operation.

Contrary to prevailing opinions, it does not seem probable that the accession of Poland to the EU will in any way affect the attractiveness of the Port Free Zone's offer. The changes after 1st May should be considered with respect to the volume of cargo handled as well as the differences in the range of operation. Joining the European Union creates an opportunity for expanding trade exchange with the countries from outside the EU and for the increase in the turnover of transit to the third countries. A competitive factor on the European market, favourable to the Port Free Zone in the Port of Gdansk, is the cost of cargo handling operations (including the cost of labour) which is lower than in West European ports.

In 2003, the Port Free Zone handled a volume of 402,206.6 tonnes of cargoes, which was a top volume in its history. This was mainly due to the increase in the turnover of citrus fruit and bananas handled; to illustrate: in 2002 in the Port Free Zone 73,850.5 tonnes of bananas were handled, in 2003 - 130,730.6 tonnes, and until July this year - 50,229.6 tonnes. Modernized and adjusted to European standards storehouses of the Cargofruit company guarantee excellent conditions for storing bananas and any other fresh fruit imported by sea. The introduction of duty and licence for the import of bananas resulted in the decrease in cargo handling in the first seven months of 2004. However, Mr. Czeslaw Nowak, the Director of the PFZ Office, emphasizes that there is a strong tendency for cargo handling to increase in the second half of the year. Although the last year's figures do not seem likely to be repeated this year, still a sudden decline in the volume of the bananas handled is not expected to occur. Maintaining the turnover at the present level is guaranteed by constant delivery of the fruit in containers.

Besides handling the aforementioned cargoes, another important part of the PFZ's activity is storing and distributing vehicles imported to Poland by car manufacturers such as Skoda, Nissan, Mazda, Land Rover and Suzuki. At present, the extended and hardened surface storage yards of the PFZ accommodate over 3 thousand vehicles. In the Port Free Zone also other various cargoes are handled e.g. metallurgical products, construction elements, zinc and lead, granite blocks and assembly services are conducted.

In the European Union there are 32 free zones, which constitute natural competition for the PFZ in Gdansk. Thus available infrastructure is very important. Modernization work done so far in the Port Free Zone area was connected with the refurbishment of warehouses and storage yard hardening. Currently, the works are carried out with the purpose to further upgrade the quay - their first stage is predicted to be completed this year. The second stage of works is planned to take place in 2005 - in addition to a new quay a new storage yard is to be made. Moreover, an entrance to the PFZ and the adjoining ferry terminal is to be extended and a specialist ro-ro berth constructed. This investment will enable the introduction on a larger scale of modern ro-ro cargo services into the Port Free Zone, which, in turn, will result in the bigger capacity of quays and storage yards as well as will definitely make this part of the Port of Gdansk even more attractive. The upgrading works constitute the step towards the implementation of development plans concerning the creating of multi-modal terminal in the Port of Gdansk.