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New Latvian port terminal to improve cargo traffic in Baltic Sea with EBRD support
SIA Noord Natie Ventspils Terminal (NNVT), a limited liability company incorporated in Latvia, will receive a US$ 21.2 million (EUR 19.5 million) loan from the European Bank for Reconstruction and Development (EBRD) to build and operate a new multi-purpose terminal in the Baltic Sea port of Ventspils, Latvia. The terminal will be intermodal, providing a junction of different modes of transport.
"The project is consistent with both EBRD transport and country strategies, and represents a successful example of public-private partnership in a developing market and a landmark transaction within the port sector", said Johan Bastin, the EBRD’s Director for Infrastructure. "It demonstrates how well-structured, strategic joint ventures are instrumental in providing private sector financing vital to ensure a good framework for infrastructure development. The new terminal will be able to serve the growing demand for general cargo traffic in the Baltic Sea, particularly containers, and will enhance competition between terminal operators in the region promoting Ventspils as a gateway to Russia."
The project is structured as a Public-Private Partnership (PPP) between NNVT and the Ventspils Port Authorities (VPA) with a total cost of approximately US$ 75.0 million (EUR 69.0 million), with VPA providing US$ 43 million (EUR 39.5 million) of public sector financing. The EBRD loan will be used to part-finance NNVT’s US$ 32.0 million (EUR 29.5 million) investment programme as a private sector contribution to the PPP, and in particular to finance the purchase and installation of cargo handling equipment and other superstructure for the multi-purpose intermodal terminal.
The financing consists of an A-loan for the EBRD’s own account and a B-loan fully subscribed by KBC Finance Ireland, each totalling US$ 10.6 million (EUR 9.75 million).
The new terminal will introduce efficiency, innovation and a better service for customers through modern management techniques. It will benefit Latvian railways through higher network utilisation, diversification of business, and increased efficiency with the development of more balanced traffic flows.
NNVT is a joint venture established in 1998 by the lead sponsor Noord Natie nv, a major European provider of stevedoring services to shipping lines, and several Latvian entities.
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