Netlog Food Supply Chain

Location:

Turkey

Project number:

45196

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

29 Jan 2014

Status:

Complete

PSD disclosed:

22 Oct 2013

Project Description

The EBRD will provide a long-term loan of up to EUR 35 million to Netlog Lojistik Hizmetleri A.Ş. The loan will support the sustainable growth of the Company via financing its capacity expansion programme including construction and implementation of five cold chain storage facilities in various locations in Turkey including Istanbul, Ankara, Muğla and the eastern cities of Mersin and Erzurum.

Transition Impact

The project will stimulate the expansion of competitive market interactions by providing better access to cold storage and enhancing distribution networks for chilled products. The project will also help improve food quality.

Expanding the company’s cold storage capacity will reduce bottlenecks in the different sections of the cold chain that could lead to damage of food by undue temperature variations which degrade food quality.

The Client

Founded in 2003, Netlog is the leading Food and FMCG logistics company in Turkey. The Company employed 1,134 employees as of 2012 year-end.

EBRD Finance

Up to EUR 35 million.

Project Cost

Up to EUR 35 million.

Environmental Impact

Categorised B. The potential environmental and social impacts associated with the construction and operation of cold storage facilities and associated distribution networks are expected to be site specific, readily identified and addressed through appropriate mitigation and management measures.

Environmental and social due diligence (ESDD) was carried out by EBRD’s Environmental and Sustainability Department (ESD) and included a corporate audit by means of the EBRD’s standard Environment, Health and Safety (EHS) questionnaire as well as focused questions and discussions with Netlog regarding the Project components, management systems and procedures, EHS risk management and the EHS performance of existing facilities.

Although Netlog does not have an integrated environmental and health and safety management system, it does have some procedures and policies in place to manage key issues, such as waste management and OHS, and these also apply to Polar XP. Netlog is committed to improving its environmental and social performance and has a group level sustainability council with a series of companywide environmental and sustainability targets and objectives. These include reducing emissions to air from its transport fleet, increased recycling and increasing the use of Alternative Modes of Transport (AMTs), e.g. off the road and onto ships and rail.

All Polar XP cold storage facilities use the refrigerant HFC R404A. The same refrigerant is proposed for the Project. Although still a legal refrigerant in the EU and used in many supermarkets and other industrial cold storage units, R404A has a high Global Warming Potential (GWP) and it is likely that it will be subject to a phase out and a ban in terms of a proposal to revise the EU F-Gas Regulation (EC841/2006). Netlog and Polar XP will be required to develop a refrigerant phase out plan when the proposal is accepted by the EU.
Polar XP has a food safety management system certified to ISO 22000, which incorporates the principles of Hazard Analysis Critical Control Points (HACCP). Regular food safety inspections are carried out by the authorities. All facilities will be designed to meet Turkish construction regulations and CEN/TC 182 “Refrigerating systems, safety and environmental requirements”.

An Environmental and Social Action Plan (ESAP) has been developed for the Project. Key actions in the ESAP include: development and implementation of a integrated EHS management system and obtaining ISO 14001 and OHSAS 18001 certification; designation of EHS personnel to oversee new facility development; improving current OHS performance; development and implementation of a road traffic safety management system in line with ISO 39001; develop a phase out plan for HFC R404A; and formalise current and future stakeholder engagement activities in a SEP to meet PR10. Netlog will provide the EBRD with annual environmental and social reports, including updates on the implementation of the ESAP. The EBRD will monitor the Project’s environmental and social performance in line with the Bank’s E&S Policy.

Technical Cooperation

None.

Company Contact

Erdal Kesrelioglu, Board Member

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

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