The EBRD is considering providing a Senior Loan of up to USD 20 million to United Cargo Fleet for the acquisition of four 5,200 tonnes dwt multi-purpose dry-cargo vessels. The EBRD financing will help United Cargo Fleet to expand its fleet and will also contribute to the modernisation of the short-sea fleet trading in the Baltic and Black Sea, the Sea of Azov and Eastern Mediterranean, which is dominated by over-aged vessels.
The transition impact of the Project is based on the following key elements:
• Introducing best practice and modern business standards: The Bank‘s involvement will help a fledging company with operations in line with international standards. It will improve its financial reporting by adopting IFRS for its financial statements. It will also implement modern shipping IT software for its operations and re-evaluate its insurance coverage in line with international standards.
• Enhancing the environmental and safety standards in the sector: The Bank’s support for the acquisition of modern vessels will enhance the company’s operations - to be fuel efficient and to fulfil international safety and environmental standards. It will contribute to the modernisation of this segment of the shipping sector where the average age is well beyond the world’s average and thus help to mitigate environmental risks associated with the use of over-aged vessels. The implementation of a disaster response plan and of the relevant environmental management regulations from the International Maritime Organisation (IMO) will be form part of the Transition covenants of the Project.
OOO ‘United Cargo Fleet Company Ltd’ (UCF) is a Russian-registered shipping company operating in the short sea trade since 2007, which has maintained a small fleet of multi-purpose, dry-cargo vessels but aims to expand its fleet in the next few years. UCF long term objective is to develop into a medium-size short sea shipping company capable of serving the transhipment needs of large industrial companies which export dry bulk cargoes such as grains, coal fertilisers and timber from seaports situated in the Azov Sea in southern Russia.
A Senior Loan in the amount of up to USD 20 million.
USD 52 million
The project has been categorised B under the Bank's Environmental and Social Policy 2008. The acquisition of new dry cargo vessels is not associated with significant environmental and social issues and will contribute to the Company’s fleet expansion programme and fleet renewal in the sector.
The new vessels are built to comply with all international maritime environmental and safety requirements and are around 20 per cent more efficient than the average performance of the existing vessels operated in the same category in the region. A technical, environmental and social review of the Chinese shipyard contracted to construct the project vessels was found to operate under sound environmental, health and safety policies and good and safe working and labour practices were observed.
A corporate environmental and social review of UCF has been undertaken to assess its capacity to implement the project in accordance with international maritime safety and environmental standards and the Bank's PRs. The review showed that UCF is overall in compliance with regulatory requirements, EU environmental standards and international (including IMO, MARPOL and SOLAS) standards of maritime safety and environment protection and that it has appropriate systems and controls in place to manage environmental, health and safety and labour issues.
It continuously renews the safety and seaworthiness certifications and IMO compliance of its vessels. To further improve its environmental and social management systems and performance, UCF has agreed to certify its environmental management system to ISO 14001 standards, formalise its emergency response plans and ballast water management procedures, adopt GHG accounting and reporting system as well as to develop a ship scrapping plan that takes into consideration international regulation relating to transboundary movement of hazardous waste for recovery and IMO guidelines for the Safe and Environmentally Sound Recycling of Ships.
UCF will also strengthen its contractor management practices and require third parties to adhere to UCF’s corporate policies, standards and operational procedures. UCF has also committed to publishing information on its environmental and social performance and impacts as well as establishing a grievance mechanism on its web site.
Mr Denis Lounev
10, Nikolskaya Street
B/C Sheremetievsky,7th Floor
Tel : +7 495 651 67 77
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