EBRD supported the first post-crisis initial public offering of a Russian stevedoring company and the first IPO of a Russian container terminal operator on the LSE. By this investment the Bank facilitated a quality private sponsor in the expansion of port terminal capacity, contributed to elimination of significant bottlenecks in the transportation system in the country caused by lack of adequate port terminal facilities, and supported developing standards for corporate governance in the area of energy efficiency.
The Project’s transition impact is derived from its support for increasing the role of private companies in the transport sector and promoting energy efficiency.
The Company will implement a set of comprehensive energy management practices that will lead to important energy savings and will set new higher energy efficiency standards in the industry in Russia.
Lack of adequate port facilities has been identified as one of the key transport infrastructure bottlenecks in Russia. The proposed Project will contribute to increasing Russia’s relatively low containerization rate and facilitate the country’s trade and economic diversification. In addition, the investment will help reduce transportation costs by easing current supply constraints and thereby benefit shippers, shipping lines, and consumers alike.
EBRD has provided equity to GPI in the first listing of a container terminal operator in Russia in the challenging market environment, attracting new sources of financing from capital markets to the sector and helping establish a track record and market benchmark.
Global Ports Investments Plc. (“GPI” or the “Company”) is a leading container and oil products terminal operator in Russia and the Baltic region. The Company’s operations are located at key gateways for Russia, including St. Petersburg, Russia’s Far East coast, Estonia and Finland.
US$ 70 million equity investment in primary shares.
The Project has been categorised B under the EBRD Environmental and Social Policy.
Environmental and social due diligence was originally undertaken in 2008 and consisted questionnaires, site visits to GPI’s main operations, and discussions with the Company’s management in Moscow. The due diligence assessed GPI’s current corporate policies, procedures, practices and management systems as well as the potential risks and liabilities associated with its assets and operations. GPI operational sites in Tallinn, Estonia and around St. Petersburg, Russia were visited by EBRD and IFC environmental specialists to allow for full understanding of the site specific operational performance and conditions, including location, operational procedures, infrastructure connections and services, and local area development specifics. In addition, an independent environmental specialist undertook a site review of GPI’s facilities near Vladivostok on the Pacific coast. In preparation for final review, the client has updated the environmental and social questionnaires and submitted additional information on corporate policies and management systems.
Due diligence has shown that GPI is developing its management systems in accordance with national regulatory requirements and internationally recognised industry standards. GPI’s terminals are located in designated industrial areas and, therefore, were not found to be associated with significant adverse impacts on community health and safety under normal operation. Its individual operations currently rely on the local conditions and shared responsibilities between port and maritime authorities, port operators and terminal operators as well as on adherence to regulatory requirements and the corporate environmental standards and practices of its international JV partners and clients. GPI is committed to avoiding any significant environmental and social impacts from its operations and implementing good international environmental and social management practices. The IPO prospectus sets out the main environmental, safety and labour issues that the company faces, the relevant regulatory requirements and the companies policies and procedures for addressing them.
GPI has agreed to implement a corporate environmental and social action plan (ESAP) to achieve consistent high Environmental, Health, Safety and Social (EHSS) standards of all operations under its control. In accordance with the ESAP, GPI will commission independent audits of its main operations and facilities to assess their EHSS performance and develop site specific EHSS action plans to ensure compliance with national environmental and social requirements, EBRD Environmental Policy, and applicable Performance Requirements.
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