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Port of Gdynia will invest EUR 1.8 billion

Polish ports carry out investments supported with the EU funds. Those must be completed and settled by the end of 2023. Concurrently the port authorities prepare projects for years 2020-30. Zarząd Morskiego Portu Gdynia (ZMPG – the Port Authority of Gdynia) has already prepared the task list.

On the sea...

Port of Gdynia plans to invest EUR 1.8 billion. Majority of that amount, as much as EUR 1.15 billion, will go to the construction of an external port on the Baltic Sea, including any necessary infrastructure. Almost EUR 360 million will be spent on adapting sea access to the new infrastructure within the extended area. Also, the next stage of pier conversion will be carried out. The port will increase the capacity of the railroad system on the site.

The sources of financing include ZMPG own funds, funds from the Cohesion Fund, the CEF instrument, and the long-term program for construction, modernisation and maintenance of the infrastructure ensuring access to seaports and marines - says Leszek Jurczyk, Strategy and Development Director of the Port of Gdynia.

In the future, Generalna Dyrekcja Dróg Krajowych i Autostrad (GDDKiA – the General Directorate for National Roads and Highways), PKP Polskie Linie Kolejowe (the Polish Railroads), local authorities of Gdynia, and Urząd Morski (the Maritime Office) will carry out investments improving harbour access. Their tasks are estimated at EUR 1.47 billion.

Extending potential of the Port of Gdynia will allow the largest container ships to enter the harbour. Terminal operators are happy about the port investments.

One of the Pekaes (Motor Transport Company) road terminals is located within the Port of Gdynia, near Bałtycki Terminal Kontenerowy (Baltic Container Terminal) and Gdynia Container Terminal. The advantage is a perfect location, as it is placed near the Tri-City bypass and the Gdańsk Rębiechowo airport. Warehouse is connected to the national general cargo distribution terminals network, which allows for quick and efficient cargo shipment from the ports to any place in Poland. Any investments made by the ports related to increased handling potential will therefore improve operations of the Pekaes group and provide opportunities for further expansion of the company’s operations - says Kajetan Jagłowski, Manager of Sea and Air Transport at Pekaes.

... and on the land

Scheduled investments are supposed to strengthen the Port of Gdynia’s position, not only on the Baltic Sea, but also on the mainland, namely in delivery and handling at the so-called support area. Integration with the support area will cost over EUR 70 million.

The government supports those projects. “The aim is to provide legal environment for shaping efficient corporate structure of ports that reflects the modern style of operations of Western European ports, and allow for effective competition with them, also by integrating the Polish sea ports with intermodal freight terminals in the support area” - representatives of maritime and inland navigation management office stated in their programme for port development.

Terminals and faster trains

Authors of the programme also want to implement regulations allowing harbours to carry out investments in inland terminals. The Port of Gdynia has already executed an agreement with PKP (the Polish Railroads) with regard to cooperation in this area.

The aim is to join the operating potentials of PKP and the Port of Gdynia with regard to actions towards supporting development and increased competitiveness of intermodal freight connections between the port and the inland terminals at the support area. Both companies plan to obtain external funds, including EU funds, for execution of projects related to development of intermodal freight infrastructure and joint logistic operations - says Leszek Jurczyk.

In his opinion sea ports become the key element in the global logistic system. Majority of them compete to access the support area, and in order to win you must offer good quality and price of transportation to the mainland.

Ports offering the most competitive connection with the support area win the competition. In order to achieve this, it is necessary to integrate cooperation of various entities, including port authorities, transshipment handling ports (terminals), inland terminal operators, shipping companies, and railroad operators. Port Gdynia’s active participation in creating a supply chain must be joined by Polish railroad, road and intermodal freight carriers; and the next step in extending this cooperation should include expansion of intermodal freight terminals network within the Three Seas Initiative area, together with establishing connections to the Polish sea ports - explains Leszek Jurczyk.

On land, railroad shippers and terminal operators perceive ports as cooperation partners, not competitors.

I do not think the ports’ investments in terminals located within Poland constitute any threat for PKP Cargo. The ports and our group’s companies are parties to the multilateral agreement on cooperation for development of logistic infrastructure in Poland, so we can carry out, and benefit from, such investments together. Moreover, both railroad and port authorities care about developing trade between Poland and other countries, for example the Three Seas Initiative countries - says Czesław Warsewicz, President of PKP Cargo, and states that Poland must expand its logistic infrastructure as it is quite underdeveloped compared to western countries; therefore any Polish investor is welcome.

The terminal operators also hope that cooperation with railroad and port authorities will result in quicker deliveries to their transshipment sites.

Our customers may benefit significantly, as goods will be transported faster straight from the ships to our general cargo terminals. The shorter route means quicker delivery to the end recipient - explains Kajetan Jagłowski.

EUR 3.28 billion: this is the estimate of the investments needed for the extension of the Port of Gdynia and the infrastructure providing better access to the port.

Source: Puls Biznesu Daily 23rd September, 2018

Tender procedure: https://www.port.gdynia.pl/en/events/tenders
PORT OF GDYNIA AUTHORITY S.A.
ul. Rotterdamska 9
81-337 Gdynia

12 oktober 2018