Bulgaria's sea ports and airports will be offered on concession to Qatar and Kuwait, the transport minister has said. Minister Alexander Tsvetkov said priority will be assigned to the Danube bridge, linking Silistra and Kalarash, the airports at the towns of Plovdiv and Russe and the sea ports at Varna and Burgas. “The ministry's main task will be to prepare quickly the sites for concession. The state has never been a good owner and it is well known that the private owner always manages them better, “ he said. The issue will be on the agenda of the minister visit to Qatar and Kuwait next week as part of the governmental delegation, led by Prime Minister Boyko Borisov. The minister pointed out the Bulgarian Railways Company has been hard hit by the crisis and the cargo transported by it has decreased by 60% at the end of 2009 over the previous year, mainly due to the shutdown of the steel mill Kremikovtzi.
Source: Darik Radio (22.03.2010)

"We are preparing an accelerated concession of part of the transport facilities in the country - the ports of Burgas and Varna, the airports in Plovdiv, Ruse and Stara Zagora. Private investors will take a part of Sofia airport", announced the Transport Minister Alexander Tsvetkov. Preparations for these sites is going under so that the procedures are innitiated in the next month or two. It is possible that some of them are granted as early as this year, although the procedure is complex. Fast concession may be seen as anti-crisis measure by which to fill the deficit in the Treasury. This week the Transport Ministry will submit a plan for the restructuring and development of BDZ.
Source: Trud (29.03.2010)

The Government adopted a report of the Minister of Transport, Information Technology and Communications Alexander Tsvetkov for the start of preparations for concession of the ports of Varna East, Varna West, TPP Ezerovo, Petrol, Ferry Complex - Varna. Parts of the port for public transport Varna, Burgas-East, Burgas-West, Rosenetz, Nessebar and Terminal 2A, and parts of the port of Burgas will be also given to concessioners. The purpose of granting a concession for this port infrastructure is to attract private capital to operate in the public interest. Thus the sites will become convenient transport and logistical centers for passengers and cargo.
Source: Dnevnik (29.04.2010)

Public discussions on ports to be held We have drafted a strategy for the concessioning of ports and panels of experts will be ready with the analyses on these by the end of June, Deputy Transport Minister, Kamen Kichev, said at a session of the Consultative Council on Water Transport in Varna. He refused to specify the number of candidate concessionaires for the Varna Port. Public discussions on the concessions will be held after the analyses are ready. Leisure boats sailing along the Bulgarian Black Sea coast will be inspected throughout the summer. These are ready for operation in general but we have certain remarks,” added Kichev. Some 70 such vessels, aged five to ten years, sail in the summer in the Bulgarian Black Sea coastal waters.
Source: Class (04.05.2010)

A decision on concessioning some of the civil airports is expected to be made at today Council of Ministers’ session. The Cabinet will discuss a report of the Transport Ministry on the preparation for seeking future investors. The ministry’s programme on the development of infrastructure projects concessioning of the airports in Ruse, Gorna Oryahovitsa, Stara Zagora and Plovdiv and of the cargo terminals of the airports in Plovdiv and Sofia. On April 28 the ministers voted for concessioning parts of the ports in Bourgas, Varna, Ruse and Vidin. The same procedure is expected to be applied for the proposal for concessioning railway infrastructure units – the Central Railway Station in Sofia, the Poduene Railway Station, the Central Railway Station in Plovdiv and the Central Railway Station in Varna. The main purpose of seeking concessionaires is the utmost necessity of urgent investments in the airport, port and railway infrastructure.
Source: Class (12.05.2010)

Port of Varna registers a profit of BGN 1.5 mln The port of Varna processed 2.2 million tonnes of cargo in the first four months of 2010 and registered a profit of BGN 1.5 mln, a 25% increase, compared to the same period last year, said the port's Director Captain Daniel Papazov on Dnes + website (Today +). Compared to 2009, the revenue of the port rose by 5% due to more expensive freights consisting mainly of equipment for wind turbines, pipes, transit goods and equipment for power plants. After June 15, a bountiful grain harvest is expected, although the old harvest is still being exported. The repairs of the largest warehouse at the port of Varna-West have begun. It will be used for the storage of grain. This year, another investment is scheduled - the construction of a special floating facility for sulphuric acid, which will be located in the area for dangerous goods. Overall, BGN 3 mln will be invested by the port of Varna in the storehouse and the floating facility. The purchase of a mobile crane worth BGN 6 mln has also been planned
Source: Class (25.05.2010)

Bulgaria to lose a total of ˆ100 mln per year due to the lack of container terminals Every year of additional delays in the construction of container terminals in Varna and Burgas will cost Bulgaria a total of ˆ100 mln a year of forfeit benefits, stated for Klassa Doctor of Engineering Georgi Valkov, an expert on port facilities and a member of the Bulgarian Chamber of Engineers in the Investment Design (CEID) and of the Ordre des ingeneurs du Qebec (Canada). If the terminals are built before the 2015 deadline, when a global economic recovery is expected to take place, initially, a total of 700,000 TEU (Twenty-Foot Equivalent Unit) of intermodal shipping containers annually will be unloaded at both ports. According to the more optimistic forecast, however, within 2-3 years after the completion of the facility construction project, a total of 1 million TEU per year will be processed through Varna and Burgas. As a result, ports and freight forwarders could share about ˆ100 of profit for each overloaded container, or, an overall of ˆ100 mln annually, added Valkov. His reason for stating this were the signals submitted by the state-owned Bulgarian Ports Infrastructure Company on the option of redirecting the loan of ˆ230 mln granted by Japan, originally intended for the construction of the terminals, to other purposes - for example, the rehabilitation of Bulgarian railways. The port terminal project is funded by the Japanese government under a development loan of JPY 37 bn (ˆ230 mln at the exchange rate when the loan was signed on November 15, 2009). It was granted by JICA (Japan International Cooperation Agency) for a period of 25 years, with a seven-year grace period and an annual interest rate of 1.4%. So far, however, the constructional design phase has not commenced and the launch of the project has been delayed for about a year and a half for several reasons. The seven-year grace period is already on, so are penalty overdue fees. Meanwhile, our neighbours have been investing in infrastructure. The volume of cargo disembarked at Thessaloniki and Constanta has been increasing, while ports have been recording a profit of ˆ200-300 for each overloaded container. Moreover, the Romanian port of Constanta has also registered significant profits thanks to subsidies from the Japanese government. BP Port Infrastructure announced in 2009 that the implementation of the construction project for new container terminals in Varna and Burgas has started. This became possible after JICA had approved the contract for consultancy services signed between the enterprise as contractor and the joint venture of US Moffatt & Nichol and Oriental Consultants Co, Ltd in Japan. Both companies have extensive experience in the design and supervision of the construction of ports and terminals. For the time being, our administration claims that it has been encountering problems with Terminal 2A for bulk goods, which already exists in Burgas. Its construction was also funded by Japan. Since the construction of the facility, it has processed over 6.5 million tonnes of cargo. Currently, with the suspension of the Kremikovtzi metallurgical plant, Terminal 2A has not been functioning at its full capacity and the operator has difficulties with reimbursing funds borrowed. According to Professor Valkov, however, the only terminal meeting the environmental requirements for bulk goods will start operating in no less than a 100 years - giving us enough time to recover from the crisis and increase cargo loads.
Source: Class (30.06.2010)

The Bulgarian ports of Bourgas, in the south, and Varna, in the north, are experiencing increased exports of grain crops, which is expected to continue into September. The bulk of Bulgaria’s grain produce travels to markets in the Arab countries and Europe. The port of Bourgas exported 236,000 tonnes of grain crops between January and end-July. A further 45,000 tonnes are being stored at the port warehouses before they are loaded up, and companies have requested space for an additional 100,000 tonnes. Grain producers say rapeseed and wheat make up the largest amount of Bulgaria’s grain exports at the moment but the sunflower yield is also expected to come in good. Varna is experiencing even stronger exports. The port’s director Danail Papazov was quoted as saying that 1.1 million tonnes of grain has been exported since January.
Source: Dnevnik (20.08.2010)

China Saves Bulgarian Sea Ports China might play the key role in saving the Bulgarian sea ports. “When I go to the USA for the UN session I ill have talks with the prime minister of China to discuss options for joint projects,” PM Borissov announced in Varna yesterday. We need contacts with major goods’ suppliers, countries that boast high production standards and export rates. With these countries we can launch public-private ventures that will revive our ports, the PM told the Standart. The ultimate goal is to bring back to life the Bulgarian ports and make them work at full steam within the coming 7-8 years. In the next two years Bulgaria will seek funding for these projects, Borissov commented. Another strategic project – a channel connecting the Danube and the Black Sea will also be Bulgaria’s priority in the near future.
Source: Standart (30.08.2010)

China and India to Rescue Bulgarian Ports Evgeniy Moskov, Director General of State Enterprise "Port Infrastructure" - Mr. Moskov, do you think that the Chinese cargo will save Bulgaria's Black Sea ports from bankruptcy? - I truly hope so. Speaking at a forum in the coastal city of Varna, PM Borissov clearly stated that the small volume of cargo is the main problem of Bulgaria's ports. And the cargo volume is small for two reasons - the crisis in the Bulgarian economy and the collapse of Kremikovtsi, which made it necessary for the state to bail out the ports in Lom and Burgas. The state subsidies will be used to make absolutely necessary investments in the ports' infrastructure and to pay off the state-guaranteed loan, which was granted by the Japan Bank for International Cooperation eleven years ago to finance the construction of the A2 terminal at the Port of Burgas. This is why we want to attract huge exporters such as China, Russia and India, for whom Bulgaria's ports may become the gateway to the European market. The cargo from these countries will not only make up for the collapse of Kremikovtsi, but will further expand the cargo turnover at our ports. The second reason for the small volume of cargo processed at Bulgaria's ports is their modest technical capacity. Here PM Borissov is again right in saying that by attracting huge non-European exporters and signing contracts for public-private partnerships, we can easily generate the financial resources necessary for the modernization and upgrade of our ports. - How do you manage the serving of the Japanese loan for this terminal? - It is extremely difficult. Today (editor's note - yesterday), a JBIC mission arrives to analyze the future of Terminal 2. After Kremikovtsi went bankrupt, the terminal functions at a third of its capacity which hinders the serving of the debt. Only 2.5 million tons of cargo pass through 2A. These make up 60% of the cargo turnover of port Bourgas but form only 14% of the port's revenues. Now the Japanese arrive to check something I told them they have to inspect three or four years ago when it was obvious to everyone Kremikovtsi would go bankrupt. They will try to find out variants for attracting transit bulk cargo or for transforming 2A into a terminal for general cargo or containers.
Source: Standart (31.08.2010)

Thessaloniki Port Invites Bulgarian Companies Thessaloniki port has announced it reduced its prices by 20% and invited Bulgarian companies to make joint combined shipments from Europe along the Danube river. The idea is that combined shipments be made from Bulgarian Danube ports of Vidin and Lom to Thessaloniki or from Thessaloniki to Varna by trains and from Varna to Russia and Ukraine by ferryboats. The company which operates Thessaloniki port will construct a freight depot in Bulgaria if enough loads are available and it has extended an offer to Bulgarian companies to join the idea. "The place of the future freight depot should be near a railway track or a road artery," said Stylianos Aggeloudis, CEO of Thessaloniki port.
Source: Standart (07.10.2010)

Aurubis says port concession haze holds up EUR 25m project The fuzzy situation with the concession of Bulgaria’s ports of Bourgas and Varna is delaying a EUR 25 million investment project, said Peter Willbrandt, board member of Europe’s largest copper producer Aurubis. Speaking to Dnevnik at the dedication ceremony of the company’s expanded slag flotation plant in the Bulgarian town of Pirdop, Willbrandt said that Aurubis plans to build a raw materials warehousing facility at the port of Bourgas, on the southern Black Sea coast. But while it pledged back in March to concession off the ports, the Bulgarian Ministry of Transport has still not launched the procedure although preparation is already underway. No deadline for signing the concession agreements has been fixed though, the ministry noted. At the moment, Aurubis takes 60% of its raw materials from South America via Bourgas, deriving the balance from local mines. Nicolas Treand, executive director of the site in Bulgaria, said the Bulgarian administration lacks the initiative needed to implement such projects. Commenting on ambitions by the European Commission (EC) to slash carbon dioxide (CO2) emissions by 30%, Willbrandt said this target would place an additional burden on copper producers. Unless schemes are put in place to offset this impact, the industry might be caused to disappear, he warned.
Source: Dnevnik (08.10.2010)

Chinese investors have shown interest in our four ports, said the Deputy Minister of Transport, Communications and Information Technology Kamen Kichev. These are the sea ports in Varna and Bourgas and river ports in Rousse and Lom, but it was not specified exactly in which port the foreign capital will enter. Next week a team of Transport Ministry is going on a visit to China, where the overall strategy for concessioning of ports, airports and railway stations will be presented.
Source: mediapool.bg (18.10.2010)

Bulgaria Invites Chinese Companies to Invest in Black Sea Ports Bulgaria will invite Chinese companies to invest in its Black Sea ports. Bulgaria's Minister of Transport Alexander Tsvetkov had a meeting with his Chinese counterpart Li Shenglin in Beijing yesterday. The two ministers discussed the opportunities for cooperation in the field of port infrastructure through concession or joint ventures. Bulgaria may provide excellent conditions for port operators. "We think that the Bulgarian ports may be a lucrative business and offer an alternative road to the countries in Central and Eastern Asia," Minister Tsvetkov added. Later in the day Minister Tsvetkov discussed the prospects of investment in Bulgaria with the managements of China National Machinery Industry Complete Engineering Corporation which is a leading company in the field of infrastructure.
Source: Standart (28.10.2010)

Varna Port with a new project for building terminals A new project for the construction of two deep-water terminals – for grain vessels and for container carriers - was proposed yesterday by Varna Port’s Executive Director, Captain Daniel Papazov at a roundtable with the participation of Deputy Transport Minister Kamen Kichev, MPs from GERB from Varna, the city Mayor Kiril Yordanov and representatives of the entire branch. According to Papazov, the new project is more feasible than the expansion of the port in the direction of the Varna lake and the Maksuda housing suburb proposed two years ago when a memorandum for financing was signed with the Development Bank of Japan. However, the proposal has turned out to be implausible since the Asparuhovo bridge is not high enough for big vessels to pass under it, and the entire idea of building deep-water terminals for grain ships and container carriers is to attract such vessels. This renders the project, for which Japan would have lent Bulgaria ˆ140 mln, meaningless. This was confirmed to journalists by the Executive Director of the Maritime Administration Sergey Tsarnakliyski. He said that “the Japanese loan is disadvantageous to Bulgaria”. According to him, a lot of time since the agreement was signed has already been lost and we will have to pay interest now although the project has not started yet. “The new project for the expansion of the Varna Port will rely on financing from the Cohesion Fund, which we can begin to use in 2014,” said Captain Papazov during his presentation yesterday. He explained that the share of State funding of such a project will be 15%, which is several times less than in the case of the former project, and this would be more advantageous than taking a loan from Japan. During a closed-door meeting at the Maritime Administration earlier that day, the Deputy Transport Minister met with branch representatives and commented on issues related to the problems facing maritime education and the safety of navigation. Introduction of stricter requirements to the centres and educational establishments offering training services will be considered in order to improve the quality of navigation education, learnt Klassa
Source: Class (22.12.2010)