Moldova greenlights sale of Giurgiulesti port to Romanian state co

CHISINAU. July 15 (Interfax) - The Moldovan authorities have approved the sale of the Giurgiulesti International Free Port (GIFP) to Romanian state company Administratia Porturilor Maritime S.A. Constanta (CNAPM), the Moldovan government's investment council reported.

The "council reviewed and approved the application" of CNAPM, "which intends to invest more than 24 million euros in the development of the infrastructure of the Giurgiulesti International Free Port, currently managed by the European Bank for Reconstruction and Development (EBRD)," a press release on the Cabinet's website said.

The application for preliminary approval of investment calls for the acquisition of 100% of Danube Logistics, which is wholly owned by the EBRD, the general investor and operator of GIFP, the release said.

The proposed investment plan involves developing the terminal with ramps, building a container terminal, modernizing the railway, expanding storage facilities, digitalizing port operations, introducing energy efficiency solutions and transitioning to environmentally clean technologies, the release said.

The EBRD, which put GIFP up for sale on April 14, said at the end of June that it had received several binding offers to acquire Moldova's main commercial sea and river port.

Soon after the sale was announced, CNAPM, which is controlled by Romania's Transport Ministry, began looking for a consultant to help it purchase Danube Logistics.

GIFP, which is located 133.8 km from the Black Sea on the left bank of the Prut and Danube rivers in the village of Giurgiulesti on the borders with Romania and Ukraine, is Moldova's only port with access to the Black Sea. The port was created in 2006 thanks to Ukraine's transfer of 430 meters of Danube and Prut shoreline to Moldova.

The port has an oil terminal with storage capacity for 63,000 tonnes, two grain terminals, a terminal for other cargo and a business park. The port handles more than 70% of Moldovan imports and exports shipped by water transport. Romanian media reported that the port became a strategic transit point for Ukrainian grain shipments after disruptions in operations at Ukrainian ports on the Black Sea.

The Romanian government discussed a memorandum on the purchase of GIFP from the EBRD at the end of last year. Bulgaria's MBF Port Burgas also showed interest in buying the port.

It was also reported earlier that the Moldovan authorities plan to create a strategic reserve of oil products at the port's oil terminal.