KfW May Provide EUR 40 Million For Completing Breakwater On Quarantine Mole In Odesa

02 March 2017 17:12

German bank KfW may provide a loan for completing the construction of a breakwater on Quarantine Mole, which is in the Odesa seaport. The loan is expected to amount to EUR 40 million and the German federal government is expected provide guarantee, the Ukrainian Sea Ports Administration announced.

This issue was discussed when Rainer Bomba, the state secretary for Germany’s Ministry of Transport and Digital Infrastructure, visited Container Terminal Odesa’s construction site on Quarantine Mole at the Odesa seaport.

"Despite the delay of the facility’s construction, the container terminal project is a priority for the Ukrainian Sea Ports Administration. This initiative has been included in the financial plan and we will immediately proceed with the construction of the breakwater after approval of the details of the project," the Ukrainian Seaports Administration’s head Raivis Veckagans said.

The capital investment needed for completion of the construction of the breakwater and the dredging of the port waters around the new terminal is estimated at about UAH 1.2 billion (about EUR 40 million).

As reported, Container Terminal Odesa (CTO) is a subsidiary of HHLA AG (Hamburg), which is one of the largest logistics holding companies in the European Union. Container Terminal Odesa began construction of a new container terminal called Quarantine Mol in cooperation with the Ukrainian Sea Ports Authority in 2010. The new terminal will increase the existing annual handling capacity by 600,000 TEU. The total amount of investment in the project is more than UAH 5 billion.

Construction began in April 2010. The Quarantine Mole container terminal processed the first two vessels in test mode in September 2014. CTO handled about 40% of all the container cargo traffic at Quarantine Mol’s new berths in 2016.