ICTSI and Luka Rijeka d.d. (LR), Croatia's largest marine services and logistics provider, signed a 30-year strategic partnership for the management of the Adriatic Gate Container Terminal (AGCT), a unit of LR and the existing terminal operator of the Bradjica Container Terminal in Rijeka. As part of the transaction, ICTSI purchased 51 percent shareholdings of the AGCT for EUR 15 million.
The entry of ICTSI, with its global experience in port operations and development, represents the successful conclusion of a major infrastructure project by the Croatian Government. ICTSI participated in a highly competitive, transparent public tender, and was nominated as the preferred bidder in late 2010. ICTSI recently concluded negotiations with LR, the existing concession holder.
The AGCT is ICTSI's first venture into Croatia, and the largest Philippine investment in Southeast and Central Europe. AGCT plans to invest over EUR 70 million during the initial phase of the concession. Key investments include new super post Panamax quay cranes (QC), high-density rubber tired gantries (RTG) and other mobile handling equipment, comprehensive vessel operations and container terminal management systems, state of the art automated gates, and leading edge security systems among others.
Signing ceremonies were recently held at the port city's Governor's Palace. Manuel Fernandez, ICTSI senior vice president for Europe, Middle East and Africa, and Denis Vukorepa, Luka Rijeka management board chairman, signed the agreements.
In his message, Enrique K. Razon Jr., ICTSI chairman and president, said: "I would like to thank and express our deepest appreciation to the Government of Croatia, the County of Primorsko-Goranska, City of Rijeka, Port of Rijeka Authority and Luka Rijeka for choosing ICTSI as its strategic partner for the modernization of the Rijeka container terminal. Our company is very excited by the prospect and opportunity of being partners with you in developing a world class, efficient and reliable gateway for Croatia."
"Luka Rijeka's partnership with an experienced global terminal operator like ICTSI will certainly improve container traffic and operations in the terminal. The expertise and cooperation of the two companies will provide strong logistical support, and open new opportunities for the Port of Rijeka in the Central and Southeastern European markets," Mr. Vukorepa added.
On the other hand, Mr. Fernandez said: "We see a very bright future for AGCT. The planned investments of Luka Rijeka and ICTSI, together with the cooperation of the workforce, will significantly boost efficiency levels at the terminal, and expand its reach and influence across an extended hinterland."
Bradjica Container Terminal, which will be named Adriatic Gate Container Terminal to bear the same name of the operating company, is undergoing an intensive modernization program under the Rijeka Gateway Project. The project aims to improve the port's competitiveness through the active participation of the private sector as well as link Rijeka and the Balkan region to international transport corridors. The project includes the extension of the terminal's south quay to 330 meters and dredging of its draft to 14.5 meters. The terminal's container yard is being expanded to accommodate 600,000 TEUs in annual capacity.
Aside from serving Croatian trade, the terminal is being primed to be the trading gateway for Hungary, Czech Republic, Slovakia, south Poland, Serbia, and Bosnia and Herzegovina, all of which are natural hinterlands of the Port of Rijeka. The port city is also the nearest port to the emerging economic centers of Central Europe: Zagreb, capital city of Croatia; Budapest, capital city of Hungary; and Belgrade, capital city of Serbia.
ICTSI will implement its global expertise to raise t
