Tuesday, September 03, 2024

 

Romania Proceeds with Negotiations to Purchase Moldova’s Commercial Port

Moldovia port
Romania is negotiating to buy Moldovia's international commercial port Giurgiulesti (PILG)

Published Sep 1, 2024 4:37 PM by The Maritime Executive

 

 

The Romanian government has approved a plan to buy neighboring Moldova’s Giurgiulesti port. It is part of a strategic plan to increase its influence across the region and play a critical role in Black Sea shipping and commerce after the war in Ukraine. Romania began talks to acquire the port last year.

After the cabinet approval, a spokesman for the Romanian government Mihai Constantin, said last week that a commission of negotiation has been set up. Romania plans to purchase Giurgiulesti port through its national company, Administration of Maritime Ports, which is owned by the Ministry of Transport. The process involves Romania acquiring the shares of the European Bank for Reconstruction and Development (EBRD) in Danube Logistics company, which is the operator of Giurgiulesti International Free Port.

Moldova through its government spokesperson Daniel Voda confirmed the discussions on the sale of Giurgiulesti port. Voda clarified that there are two port infrastructure entities in Giurgiulesti and that the talks are for the Giurgiulesti International Free Port (PILG), which is controlled by EBRD under a 99-year lease that began in 2021. The Giurgiulesti State Port, owned by Moldova, is not part of the negotiations.

Last year, Moldavian President Maia Sandu said that the port required investment noting that it had become strategically import since the start of the war in Ukraine. Voda noted that PILG had in the past attracted other potential investors from Turkey, the Netherlands, and Denmark.

In a memorandum approving the purchase of Giurgiulesti port, Romanian government said it was interested in the terminal taking into account the competition between the Constanta port and other ports in the Black Sea basin.

“By acquiring the port, Romania plans to consolidate the traffic of goods, and make the port of Constanta as one of Eastern Europe’s major transport hubs,” said Constantin.

Giurgiulesti is the only port in the landlocked Moldova, located in the southernmost point of the country. The port sits at the confluence of the Prut and the Danube Rivers, about 83 miles from the Black Sea. This strategic location means that it can be accessed by both river and sea-going vessels, and is equipped with a terminal for the storage and transshipment of refined oil products.

Giurgiulesti port has started playing a vital function in shipment of grain and fuel in and out of Ukraine after Russia started blockading Ukrainian ports along the Black Sea. There was a quadrilateral agreement between the ports of Reni in Ukraine, Giurgiulesti in Moldova, and Galati and Constanta in Romania. In an interview with local media last year, Romanian Prime Minister Marcel Ciolacu said that acquiring the river-to-sea port could also play a crucial role in the reconstruction of Ukraine after the war. 

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