NDPTL grant helps kick off port expansion in Gdansk

The Deepwater Container Terminal (DCT) in Gdansk, Poland, is the Baltic Sea’s hub for large cargo vessels from East Asia. The construction of a second berth at the DCT is currently one of Europe’s largest maritime infrastructure projects. The expansion started off with the help of a small support grant from the Northern Dimension Partnership on Transport and Logistics (NDPTL).

Situated within the industrial area of Gdansk’s Northern Port, the DCT is the Baltic Sea’s only deepwater terminal able to cater to large container vessels coming in from China and Korea. Due to its strategic location, the DCT functions as a distribution centre and key link for Pan-European Transport Corridor VI, connecting the Nordic–Baltic countries with Southern and Eastern Europe.

In accordance with the policies of the European Union, Poland should work towards the development of ship transport in order to decongest land routes. Hence, the construction of a second container terminal was decided by DCT Gdansk S.A. In order to finance the project’s planning stage, an NDPTL support grant totalling EUR 150,000 was obtained.

In an interview with NIB Newsletter, Grzegroz Pawlowski, Legal and Corporate Affairs Director at DCT Gdansk S.A., and Oddgeir Danielsen, Director of the NDPTL Secretariat in Helsinki, weigh in on their cooperation and the success of the DCT’s project.

“The initiative puts particular emphasis on supporting initiatives that create added value for our region of influence. The DCT Gdansk expansion project clearly met the requirements for contributing to our goals.”

“Major cargo ship routes linking Poland and most of Eastern Europe to Asia and the Americas run through the Baltic Sea”, says Mr Pawlowski.

“The DCT Gdansk handles Poland’s import, export and transit, and is an important transport link for the region. The growing demand for deep-sea services called for the expansion and modernisation of the terminal.”

The construction of the new terminal includes associated port infrastructure for container loading and is intended to double the handling capacity of the terminal. The realisation of the project is expected to generate economic growth for Poland as well as the central East European and Baltic Sea regions.

“The EUR 150,000 support grant was given to DCT Gdansk S.A. to finance the project’s initial preparatory and feasibility studies”, Mr Danielsen continues.

“This modest amount has enabled the setup of the documentation portfolio necessary to make the project financeable.”

The project developed and managed to obtain co-financing for the entire investment totalling EUR 290 million from a group of commercial and pro-development banks, including the EBRD. The construction began in January 2015, and is expected to be completed in August 2016.

“The port expansion is a project of common interest under the definition of the NDPTL, and it contributes to the development of the regional network by complementing other European transport projects.”

“The NDPTL support fund played a crucial role in the DCT’s investment in the new terminal by financing the project design”

“The success of the project shows that the NDPTL’s catalyst approach is indeed working, and that for well-prepared projects financing will always be available”, Mr Danielsen says. “The fund currently consists of voluntary contributions from Finland, Norway, Germany and the European Commission. We do indeed hope that other countries will contribute as well”, he concludes.

Within the framework of the Northern Dimension Policy, the Northern Dimension Partnership for Transportation and Logistics (NDPTL) was established in 2009, and is one of the four existing partnerships of the Northern Dimension. Geographically the Northern Dimension focuses on north-west Russia, Kaliningrad, the Baltic and Barents Seas, as well as the Arctic and Sub-Arctic regions. The NDPTL Secretariat operates as a special unit within the Nordic Investment Bank in Helsinki, Finland.