Translated version of this PSD: Lithuanian
EBRD is considering supporting Terminal Investment Limited, a worldwide container terminal operator and a part of the Mediterranean Shipping Company Group, in expanding its container handling operations at Klaipeda Port, through its locally based operating subsidiary LK AB Klaipedos Smelte. This brownfield expansion project will provide additional gateway capacity for Lithuania and transit markets and will transform the terminal into a transhipment hub for the Mediterranean Shipping Company in the Baltic.
The transition impact of the proposed project will derive from its support for competitive private sector activity in the port operations sector in the Baltics. The ports in the Baltic region are mainly serviced by feeder lines, resulting in increased transport costs and reduced efficiency in the movement of goods, and thus acting as a constraint on economic growth.
This infrastructure project will increase container handling capacity in the region, and introduce new products and services contributing to a more competitive environment in the sector and eventually to a higher economic growth. The economies of scale of deep sea services linked to intermodal operations to be offered by the Mediterranean Shipping Company at Klaipedos Smelte are expected to further increase transit and transhipment container volumes in Lithuania and neighbouring markets and simultaneously reduce costs of transportation to major markets serviced by Baltic ports.
LK AB Klaipedos Smelte – an operator of a container terminal in Klaipeda Port, Lithuania, and a subsidiary of Terminal Investment Limited – a holding that handles investments in and operation of terminals for the Mediterranean Shipping Company Group.
A senior loan of up to EUR 32.5 million.
EUR 65 million.
The Project has been categorised B in accordance with the Bank’s 2008 Environmental and Social Policy. Environmental and social due diligence has been undertaken by the Bank’s Environment and Sustainability Department based on a review of the company’s corporate management systems; relevant information provided by the Company; and a site visit and discussions with the company’s personnel to evaluate the current operational performance and the risk management plans for the planned investment programme.
The investigation showed that the potential future adverse impacts of the project will be site specific and addressed through appropriate mitigation measures.
An overview of the company’s existing facilities permitting status confirms compliance with national requirements and to a large extent with international standards. The company has managers in place responsible for the environmental and health and safety issues. The system of regular internal audits is operated with visits carried out by the environmental and health and safety manager and corresponds to good practices of governance. According to the obtained information the company provides all required reports on environmental protection and health and safety management. The company’s activity undergoes periodical inspections from government regulatory bodies and all non-compliances are corrected on a timely basis by the company. The company provides proper supervision of implementation of the environmental and health and safety requirements by contractors and sub-contractors; proper requirements and enforcement sanctions are included into the tendering and contractual supervision. The environmental, health and safety manager and health and safety representative at the sites carry out continuous supervision of the subcontractors work. The company’s existing operation is not associated with significant environmental pollution. According to the environmental screening, the environmental impact assessment is not obligatory for the project.
The due diligence confirmed that the company has efficient public communication, consultation and disclosure policy that in general meets the EBRD's requirements.
An Environmental and Social Action Plan has been developed and agreed with the company to address areas for improvement identified during the environmental and social due diligence and to carry out the necessary mitigation measures to comply with national regulations and the Bank’s performance requirements.
In addition, the Environmental and Social Action Plan also requires the development and implementation of a Stakeholder Engagement Plan and grievance mechanism. The company will also disclose information locally on its environmental and social performance.
The project will be monitored in terms of its environmental and social performance and implementation of the Environmental and Social Action Plan through annual environmental and sustainability reports and site visits when deemed necessary.
Jelena Černij – CFO, Klaipedos Smelte
Tel. +370 46 496205 ;
Fax. +370 46 496230
For business opportunities or procurement, contact the client company.
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