DCT Gdansk expansion

Translated version of this PSD: Polish

Project Description

The EBRD is considering providing a senior loan to DCT Gdansk  S.A ( “DCT”) to finance the construction of a second terminal (“DCT2”) adjacent to an existing terminal (“DCT1”) which is the largest deep-sea container terminal in Gdańsk, Poland (“the project”).

 The project envisages the expansion of the sponsor’s operational capacity from 1.35 million TEUs to 2.55 million TEUs (“twenty foot equivalent unit”). The construction is expected to commence in the second half of 2014 and be completed in 2016. 

Transition Impact

The project’s transition impact is expected to stem from market expansion through a capacity increase in deep sea cargo infrastructure, being the most competitive gateway between Asia and Europe for Poland and the region.  The project will not only increase the capacity for deep sea containers, but will also lead to extension of the competitive transhipment market.

The project will help to overcome container handling capacity constraints in the port of Gdansk, which have to date restricted the development of the port as an important transhipment hub for the hinterland in the country as well as the Baltic, Central and Eastern European region and the further development of multi-modal logistics in Poland. 

Built-up cost analysis undertaken as part of the due diligence confirms that DCT will provide the most cost effective way of serving hinterland destinations in the South and East Baltic Region which, together with the efficiencies achieved through the operation of larger vessels, will lead to notable energy savings. Furthermore, the project will incorporate some cutting edge technologies and best practices in energy management to consolidate its strong energy efficiency focus.

The Client

DCT Gdansk SA is a privately owned company incorporated in Poland. It is majority owned by Global Infrastructure Fund II, an investment fund managed by Macquarie Infrastructure and Real Assets (MIRA), and three Australian superannuation pension funds.

EBRD Finance

The EBRD loan will be in an amount of up to €75 million representing up to 25% of the total project costs. The proceeds will be used primarily for the construction of DCT2 and to improve the efficiency of its overall operation.

The remaining funding for the project is expected to be provided by other financial institutions as well as cash flows generated by the existing terminal facility.

Project Cost

Approximately €0.3 billion. 

Environmental Impact

Categorised A. The development of a new deep sea container terminal accepting vessels of up to approx. 1,350 tonnes and involving dredging and land reclamation requires an Environmental and Social Impact Assessment (ESIA) and a formal participatory public consultation process, inclusive of a minimum of 60 days public disclosure of the ESIA package before EBRD Board meeting.

The project is located within the industrial area of the Northern Port of Gdansk, and will encroach from the sea side on the Natura 2000, site "Zatoka Pucka" SPA established for protection birds under EU Birds Directive.  The Client has completed a local Environmental Impact Assessment and stakeholder engagement process in line with Polish legislation, which has fully transposed EU EIA, Habitats and Bird Directives. The Environmental Consent Decision for the project was granted by the Regional Director for Environmental Protection in Gdańsk on March 28, 2014. The Decision sets up environmental conditions for the project development with regard to onshore and offshore environment.  An independent consultant was engaged by the Client to carry out an assessment of the project against EBRD Environmental and Social Policy and Performance Requirements, NIB Sustainability Policy and guidelines, EU Strategic Environmental Assessment, EIA, Birds and Habitat Directives, including EC Guidelines for Appropriate Assessment, and independently confirm if the project includes all necessary measures to avoid, minimise or mitigate any adverse change in environmental conditions and impacts on public health and safety. As a result, an ESIA package (containing Environmental and Social Assessment Report, Non-Technical Summary and Stakeholder Engagements Plan) was prepared and is currently subject to disclosure by EBRD and the Client. See relevant documents on the EBRD web site and the company web site.

The project’s main environmental impacts are related to the loss of breeding sites of the Little Tern, Common Ringed Plover, Common Merganser and Common Shelduck (birds protected within the limits of SPA PLB220005 “Zatoka Pucka”) located at the planned construction site. Compensation measures have been determined and assessed. These include: creating new breeding areas at alternative locations; installation of nest boxes; proper work organisation, including construction works outside the breeding season, keeping appropriate distance between the works area and bird colonies, supervision by expert ornithologists. Alternatives and the nature of public interest to implement the proposed project have been analysed.  Imperative reasons of overriding public interest of the project implementation were confirmed.

Due diligence confirmed that DCT implemented structured environmental and social management systems at their current DCT1 (Terminal 1) operations and have the institutional capacity to implement the project in line with EBRD PRs. Requirements for a structured approach to environmental and social management will be incorporated into the turn-key tender documentation.

Due to its location, no significant social impacts are expected as a result of the development. No land acquisition is foreseen. The project will be developed within the existing industrial Port area and will not cause economic displacement. Due to the significant distance to the closest residential areas and the scale of the construction works, the construction stage impacts are considered negligible. Additional terminal capacity will result in an increase in road and railway traffic for transportation of goods inland, however the assessment concludes that appropriate infrastructure is in place (new city ring road) or under development (additional railways siding). Health and safety (H&S) risks will be managed though appropriate procedures as well as through regular audits and supervision of DCT H&S staff and relevant authorities. A Stakeholder Engagement Plan has been developed to manage engagement at all levels during project implementation.

An Environmental and Social Action Plan (ESAP) has been developed for the project and addresses mitigation measures during the construction, operational and decommissioning phases. Among others the ESAP addresses: development of formalised environmental and social management systems in line with ISO 14001 and OHAS 18000 by DCT covering DCT1 and DCT2 during construction and operation; appropriate supervision of construction works by ornithologists; archaeologist and geologist; analysis and assessment of impacts of planned dredging works and disposal of dredged sediment at the managed offshore site; archaeological surveys offshore prior to dredging and land reclamation works; compensatory measures for birds and bats as outlined in the environmental consent; development of appropriate procedures for unexploded ordnance; revision of relevant emergency response plans in line with the greater Northern Port procedures; ecological monitoring during and post construction and obtaining relevant operational permits.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

An Energy Audit was carried out that analysed the energy efficiency performance of the main operations in order to identify energy efficiency investments and measures. The Energy Audit was funded by the Bank’s Shareholder Special Fund, through the Sustainable Transport Technical Assistance Programme.

Company Contact

For project and financial matters:

Mr Adam Zolnowski
DCT

Tel. +48 58 737 77 37
Email: adam.zolnowski@dctgdansk.com

 

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