Romania acquires Moldova's Giurgiulesti port from EBRD
CHISINAU. April 22 (Interfax) - Romania's Administratia Porturilor Maritime S.A. Constanta (APM), or Maritime Ports Administration SA Constanța, has closed the acquisition of ICS Danube Logistics, operator of Moldova's Giurgiulesti International Free Port (GIFP), from the European Bank for Reconstruction and Development.
"By taking over the Giurgiulesti Port, Romania has committed to ensuring its development and strengthening its position in the new geopolitical context," the Romanian government said in a press release.
The new owner will invest to increase the port's capacity, modernize infrastructure, and strengthen its position in the Black Sea region and the Danube basin. "Its strategic role will increase through this investment, and the port is well positioned to also serve in the future reconstruction process of Ukraine," the government said.
The press release does not say how much the deal cost. Ionel Scriosteanu, State Secretary at the Romanian Ministry of Transportation and Infrastructure, said at the beginning of April that the Romanian government had set aside around $62 million from its reserve fund to buy the port.
APM made a binding offer to buy the GIFP from the EBRD for $62 million in September last year, but at the time the deal was in danger of being derailed by an APM minority shareholder, Romanian company Fondul Proprietatea (FP), which owns 20% of APM and considered the deal was too expensive.
The EBRD said in the middle of February this year that it would soon close the deal to sell 100% of Danube Logistics to the Romanian state company.
The EBRD, which put GIFP up for sale in April last year, said at the end of June that it had received several binding offers to acquire Moldova's main commercial sea and river port. In mid-July, the Moldovan authorities approved the sale of the port to APM, noting that the company intends to invest 24 million euros in the port's development.
GIFP, which is located 133.8 km from the Black Sea on the left bank of the Prut and Danube rivers in the town 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 and is capable of handling around 2 million tonnes of cargo per year.
