Sunday, 14 April 2019

Rijeka-Karlovac Railway Line Heading for Chinese or EU Hands?

As the Chinese show greater interest in various Croatian strategic projects, the EU and the EC become more and more uneasy at the thought of such a heavy Chinese business presence in Croatia. As the EC changes its attitude towards some Croatian projects to which it reacted negatively in the past, has the Chinese influence rendered this change of heart senseless?

As Novac/Kresimir Zabec writes on the 13th of April, 2019, Croatia wants to finance the construction of the railway line from Karlovac to Rijeka, covering a length of 170 kilometres with EU funds, because that's more favourable to Croatia than doing it through a concession, stated Croatian Minister of Transport Oleg Butković at the construction site of Pelješac bridge recently.

Ironically much like Chinese whispers, it began to circulate in the media that everything had already been agreed with the Chinese, and that China's CRBC which is already building Pelješac bridge would construct the railway line via a concession model. Economy Minister Darko Horvat has thus announced giving the Chinese company a fifty year concession. However, Butković has very clearly stated that there has been absolutely no direct agreement with the Chinese and that everything will go through a tender, as usual.

''If we decide on a concession tender, then Chinese companies can also apply. If the line is built using EU funds, Chinese companies will be able to bid to be the contractors for the project,'' said Butković.

EU funding for the project is much more favourable for Croatia because it doesn't affect the growth of public debt. Should the case result in giving a concession to a Chinese company, they would build and finance it, but with government guarantees amounting to 1.7 billion euros, which is something the state can ill afford. According to current projections, the entire line should be completed by 2030.

Of the 270 kilometre of railway line from Botovo on the Croatian-Hungarian border, to Rijeka on the shores of the Northern Adriatic, the section from Karlovac to Rijeka is currently not covered at all by any form of EU co-financing.

A few years ago, the European Commission told the Croatian Government quite clearly that they would not finance that part of the line from Karlovac to Rijeka because it was too expensive and it just doesn't pay off. After that, the Croatian Government turned to the Chinese who were constantly showing interest in constructing that section. Now that the negotiations between China and Croatia have entered a much deeper and more serious phase, signals from Brussels, more specifically the European Commission, have been arriving which indicate that they are, despite all, still interested in the project.

Although that railway line is not officially part of the trans-European transport network, senior officials of the European Commission's Directorate General for Transport have openly told reporters that the Commission is ready to co-finance this project, and that it is a very important part of the European budget planning in the period commencing in 2021. Quite a turnaround, no?

In addition, this railway line is part of the line from Rijeka to the Hungarian border, which the European Commission has invested around 400 million euros into the modernisation and construction of, and that obviously doesn't quite sit well with the idea of the entrance of the Chinese into this project. According to statements, the ultimate goal of the overall project is to build a new bridge to the island of Krk and to build a new port on the island for container transport, which is an idea that the Chinese are also very interested in.

What stage are the works in?

Rijeka - Zagreb

The railway line from Rijeka tp Zagreb to the Hungarian border is part of the international Mediterranean Corridor connecting southern Europe with Central and Eastern Europe. The modernisation of this line would be of great importance to the Port of Rijeka. The modernisation and the construction of these lines are all in different stages of execution.

Botovo - Koprivnica - Križevci

In 2016, the European Commission approved 240 million euro for Croatia to build this section, but the contractor for the job hasn't yet been selected. A tender is in progress, but it has been stopped once again due to an appeal lodged by an Italian company.

Križevci - Dugo Selo

This is the only section of the track where works are ongoing. The European Union has invested about 180 million euros in this project, but works began a year and a half late because of contractor issues.

Hrvatski Leskovac - Karlovac

The design of this part of the line was co-financed by the EU in the amount of about 6 million euros. It is expected that tenders will be announced to modernise the existing works and build another track. The value of the works is estimated at 315 million euros and is planned to be funded through EU funds.

Karlovac - Oštarije

An entirely new two-track railway would be constructed on this part of the track, and the value of the works would be estimated at about 400 million euros. Project documentation has been produced, which has been paid for by the EU in the amount of 9 million euros.

Oštarije - Škrljevo

This, which is considered to be the most challenging part of the line, hasn't yet been fully defined, and technical documentation is being prepared by the EU, for which it has paid nearly 6 million euros. The value of the works on this section is estimated at as much as one billion euros.

Škrljevo - Rijeka - Jurdani

Project documentation was produced by the EU at a cost of 8.5 million euros. The value of the works is estimated at 270 million euros in total.

Make sure to follow our dedicated business and politics pages for more on Chinese-Croatian relations, doing business in Croatia, the investment climate in Croatia, Croatian companies, products and services, government policies and much more.

Click here for the original article by Kresimir Zabec for Novac/Jutarnji

Saturday, 13 April 2019

Why Do The Chinese Really Want To Invest So Heavily In Croatia?

From the construction of Pelješac bridge to planning to build a car factory in southern Dalmatia's Neretva valley, to displaying interest in potentially rescuing the enfeebled Croatian shipyards Uljanik and 3 Maj, the Chinese are no strangers to showcasing their investment interest in Croatia.

Croatia has earned itself a less than positive reputation among foreign investors, alright, let's not be so politially correct and say that Croatia is a burning hot mess in the eyes of foreign investors. ABC has come to mean ''Anything but Croatia'' in foreign investment circles, and many are simply bypassing the country entirely. That's not to talk about local, Croatian investors who have been dragged through the proverbial mud twice or even thrice the amount. Given the somewhat depressing statistics, just why are the Chinese suddenly so deeply interested in investing such huge sums of money in Croatia?

While many have welcomed the money-laden offers of the Chinese, others have remained cautiously optimistic, and some have made no qualms about being vocal in their dismay at the thought of the Chinese coming and ''taking over'' by investing heavily in Croatia's many pressing strategic projects. The motives that push the Chinese towards closer and closer ties with Croatia tend to end up as mere hearsay and solacious gossip in the comment sections of various portals, but what do the experts believe?

As Novac/Marina Karlovic Sabolic writes on the 12th of April, 2019, the Chinese are truly incredible people. They come to Croatia every ten years, and the Croats immediately forget about all of the Chinese "bofl" goods they've spent their lives purchasing and throwing away. They suddenly become blissfully unaware of the dreaded "Made in China" mark that everyone gets so sick to the back teeth of seeing plastered all over basically anything. Instead, their innermost desires display blurry images of an ailing Uljanik, of Tito's rotting memorial complex in Kumrovec, of Rijeka's port, and even football stadiums, Slobodna Dalmacija writes.

Does anybody bother to ask in this country what the Chinese will ask for in return, however? Entering into the dubious and somewhat unpredictable world of Croatian shipbuilding, constructing a much needed railway line and maybe rescuing a port in Rijeka all before dinner time will come with a price tag, and likely a hefty one. The situation when that bill inevitably arrives is one that tends to be what fills the militant online naysayers with fuel, and dread.

''Don't be afraid, China will not demand that the Communist Party be established in Croatia or that it rules the country,'' prof. Dr. Vlatko Cvrtila, one of the most prominent Croatian geopolitical experts, stated. He also added that in its long-term strategic plans, China really doesn't have any sort of idea of ​​introducing a single-party system in the countries in which it invests its money. Their interest, claims Cvrtila, is of quite another nature.

''The Chinese don't invest because they have a lot of money and they want to go around giving it out. There's no philanthropy in international relations. All they invest in is related to their global strategy of creating influence and linking the Eurasian world in a continental way. By investing in infrastructure, ports, roads and railways, they enable their goods to reach their customers more easily,'' says Cvrtila.

Such an approach, he points out, is legitimate for a country that has boasts such great economic potential at this time like China does. Their mega-project, the Silk Road, which would increase the possibility of land transport, aims to reduce overall dependence on maritime traffic restrictions.

Cvrtila notes the US administration's estimates and warnings that China will one day turn its massive economic influence into strategic power as well. This is something that United States, which is already competing with Russia, doesn't think well of. However, China is now quietly placing all of its cards on the economic side of the story.

''In order to maintain its economic growth, China must have a market. In infrastructure projects, they actually make the market more widespread. China can't stop, while it's riding the bike it needs to rotate the pedals. The Chinese are present everywhere where they can create prerequisites for the distribution of goods. In Greece, they're in the ports, in Montenegro, they're dealing with the construction of a motorway, in Croatia, they're building Pelješac bridge. This is a win win situation for everyone, because in the long run, any investment in infrastructure can improve a country's economic performance,'' says Cvrtila.

China has, therefore, created the 1 + 16 formet in Southeastern Europe where its usually large-scale investments help countries that otherwise don't have a lot of foreign investment.

''Europe has survived a difficult financial crisis and there is no "free finance" which would enter JI Europe. China's investment is actually beneficial for Europe, because along with China, the European Union has developed non-competitive but increasingly strategic economic relations, realising in time that they [the Chinese] can contribute to its economic growth,'' emphasises Cvrtila.

Croatia, according to him, is fortunate because it is strategically quite well positioned: it is closer to the heart of Europe than it is to Northern Europe. And, de facto, it is located at the intersection of the roads between the East and the West.

Unfortunately, Croatia hasn't used its geostrategic advantage yet. LNG terminal stands, as do the new train lines. It's also important to revitalise the Port of Rijeka so that Croatia can profit in the fast transport of goods to European consumers. We don't have our own investments, Europe has no capacity anymore, which is why the Croatian Government is seriously considering deals from China,'' concludes Cvrtila.

Therefore, there's no need for Croatia to be afraid of the Chinese, but rather actually use them for its own interests.

Make sure to follow our dedicated business page for more information on Chinese-Croatian relations, Chinese business plans in Croatia, and much, much more.

 

Click here for the original article by Marina Karlovic Sabolic for Novac/Jutarnji

Thursday, 11 April 2019

Chinese Reveal Interest in Croatia's Enfeebled Uljanik and 3 Maj Shipyards

As Poslovni Dnevnik writes on the 10th of April, 2019, Chinese interest continues to grow as the Republic of Croatia and China opened a new, ambitious chapter of economic and trade relations on Wednesday, deepening their relationship even more after talks between the two prime ministers who both considered the talks to be a "fruitful turnaround".

Relations between Zagreb and Beijing initially reached a higher level after the Chinese company China Road and Bridge Corporation was chosen as the much anticipated Pelješac bridge builder.

The two countries readily signed six agreements, which cover the segments of rail, agriculture, digital technology and tourism. Four more will be signed on Thursday and Friday down in Dubrovnik at the 16 + 1 summit.

"We have signed a memorandum on a much more serious, transparent and easier cooperation between companies, on the transfer of capital from China to Croatia, as well as a two-way transfer, and the possibility of capital from Croatia being invested in China. This opens up the possibility of trust and a much stronger and more serious transfer, investing and manufacturing, and we've been able to talk about other large-scale structuring projects, especially given the fact that a Chinese company is building Pelješac bridge,'' said Croatian Economy Minister Darko Horvat for RTL.

He also noted that at this point in time, Croatia has a bilateral economic exchange with China which is somewhere close to the level of a billion euros, in a much larger deficit on the Croatian side.

Horvat also confirmed that Chinese companies are offering to be the ones to construct the Rijeka-Zagreb line.

"This project has to happen, the Chinese side has shown its interest. Whether that is going to come in the shape of a long-term concession agreement or in another model... Minister [Oleg] Butković is engaged in very intensive negotiations [on that matter] at the moment,'' stated Horvat.

In conversation with RTL, Horvat also revealed that they now have a clear signal that there is interest from the Chinese side to invest in Croatia's burdened shipyards, Uljanik and 3 Maj, in Pula and Rijeka.

"The real conversations are just starting, and I'm sure we will have some concrete figures tomorrow,'' he added briefly.

When asked whether or not Chinese could end up becoming the strategic partner needed to finally save Uljanik, the economy minister simply said that nobody was trying to hide the fact that the Chinese had been called upon.

Make sure to follow our dedicated business and politics pages for more information on the blossoming China-Croatia relations, why some remain suspicious, why the European Commission has raised its eyebrows at the fact that a Chinese company is building a bridge funded primarily with EU money, and much more.

Tuesday, 9 April 2019

From Dalmatia to Karlovac and Rijeka, Chinese Eye Up Croatia

As Gordana Grgas/Novac writes on the 8th of April, 2019, if there was a European tender held solely to attract Chinese investment, the champion would certainly be Great Britain, followed by Germany, and then immediately by Italy and France. Croatia might not be anywhere near the top of China's European ''wish list'', but despite that, the Chinese interest just keeps on coming...

The countries which make up Central and Eastern Europe are low on the aforementioned European scale, even though with China, at least since the year 2012, they have enjoyed a special relationship through the China + 16 initiative, which, as a parallel diplomatic format, tends to irritate the larger, more powerful members of the European Union, as well as the European Commission itself. One of lowest on the list is Hungary with its Eurosceptic government led by Viktor Orban, and Croatia is at the very bottom, but the desire is to alter that.

This week, there is an official visit by Chinese Premier Li Keqianga to Croatia, and the eighth summit of sixteen countries of Central and Eastern Europe with China down in Dalmatia's southernmost city of Dubrovnik, and it might be the easiest thing to look at it all as part of a political show that could act as bait for investment. Whether or not this investment will really happen and what shape that might take, whether it will be done mainly through private projects, for example in tourism, or through major state projects in the rail and port sector, is not yet clear at all.

Croatia will sign nine general memoranda with China in the areas of trade, investment, agriculture, transport, science, technology and innovation, education, sport and tourism, and the most convenient customs administration protocol that will enable the export of Croatian dairy products, which are greatly loved in China. Croatia also intends to join the Asian development investment and infrastructure bank headquartered in Beijing, how much that will cost Croatia however, is not yet known.

How large European countries cooperate with China was demonstrated just ten days ago by the Italians and the French. For the visit of Chinese President Xi Jinping, Rome signed 20 agreements (and joined One Band, a one way system that connects China with the rest of Asia, Europe and Africa, and expands its trade and influence). In Paris, 15 such agreements were signed, where either contracted or announced transactions amounting to billions of euros were dealt with, covering a wide range of areas - from exports of Sicilian red oranges and French frozen chicken to the opening of Italian ports for Chinese investors, sales of 300 Airbus aircraft, energy projects, shipbuilding, etc.

After the construction of Croatia's much anticipated Pelješac bridge, which is funded primarily by European Union money, Croatia hopes for more Chinese investments in national transport projects. This regards the port of Rijeka and the entire Rijeka traffic route, including the line from Rijeka to Karlovac, as well as projects such as airports.

According to data which takes the whole of Europe into account, during the period from 2000 to 2018, almost 47 billion euros of direct investment from China was invested in Britain, Germany saw 22 billion euros, Italy saw 15.3 billion euros, and France saw 14.3 billion euros. Hungary saw a significantly smaller figure of 2.4 billion euros from the Chinese, Poland saw even less with 1.4 billion euros, Romania saw 900 million euros, and Croatia saw just 300 million euros. A stark contrast to the United Kingdom, which is by far one of Europe's most powerful nations.

In the region, the intensity is getting stronger, and in neighbouring Serbia, Chinese loans have come in handy when building transport infrastructure and energy projects and, but that medal, like any other, has two sides, and the takeover of companies hasn't always been met with welcome arms by the Serbs.

The aforementioned data report shows that the culmination of Chinese investment in the EU was reached back in 2016, largely through the take over of companies, and over the last two years, it has fallen, which is attributed to more stringent rules implemented by some EU member states, as well as increased capital controls conducted by Beijing.

For Zagreb, it was a bit uncomfortable to get closer to Communist China in the above mentioned period, as the common policy of overseeing and limiting the Chinese penetration of the ''Old Continent'', especially in strategic and technologically sensitive areas, was being undermined. That chapter however, appears to be well and truly over in Croatia's eyes.

While large investments and projects are anxiously anticipated here in Croatia (and the Chinese interest in Rijeka and the Rijeka-Karlovac line is at least nine years old), data on trade relations show that there is a deficit. State Secretary Nataša Mikuš Žigman notes that there has been a noticeable increase in the volume of trade between Croatia and China, but imports are growing more than exports are. Last year, exports of goods amounted to 133.4 million euros, an increase of 19 percent when compared to 2017, while imports amounted to 803 million euros, an increase of 15.6 percent.

Croatian companies might be able to export more to China in the future, and the business forum being held in Dubrovnik is an excellent chance to showcase some innovative Croatian export ideas, but for now, the main export products continue to be raw or semi-finished products such as stone, leather, untreated wood and polymers, while when it comes to imports, we can see the reign of traditional Chinese consumer goods, white electronics and telecommunications equipment, as well as a constantly increasing number of Chinese tourists visiting Croatia, too.

As the Chinese continue to ramp up their business in Croatia, from Pelješac bridge to Rijeka's port, more announcements continue to appear, and just recently we reported on the Chinese plan to open up a car factory tucked away among the citrus trees of southern Dalmatia's fertile Neretva valley, more precisely in the Nova sela business zone near Kula Norinska in Dubrovnik-Neretva County. While many remain concerned about Chinese influence in Croatia, many others are much more occupied and lured by the promise of an economic boost and employment opportunities.

Make sure to follow our dedicated business page for more information on China-Croatia relations and much more.

 

Click here for the original article by Gordana Grgas for Novac/Jutarnji

Sunday, 7 April 2019

Chinese Building Car Factory in Dalmatia, Jobs for 500 People

Chinese-Croatian relations grow ever closer as the Chinese expand their business empire in Dalmatia, not merely stopping at Pelješac bridge. The Chinese are now setting their sights on a vehicle factory in southern Croatia.

As Poslovni Dnevnik writes on the 7th of April, 2019, an army of unemployed people, almost three thousand of them in total who are registered at the employment centres in Metković and Ploče in the Neretva region, received the news with understandably huge enthusiasm.

The Chinese will re-launch the Neretva valley, Slobodna Dalmacija writes, breathing life back into a part of Dalmatia that really needs it. Apart from the fact that they are already working on the aforementioned construction of the much anticipated Pelješac Bridge, the Chinese will soon embark on yet another major project in Croatia - a factory for electric cars and scooters in the Nova sela business district, which has so far been being developed in the Neretva valley's Kula Norinska area, but at a very slow pace.

This slow page is set to change a lot when the Green Tech Group, registered as a company in Zadar by Karl Soong along with Croatian entrepreneurs Mladen and Anthony Ninčević, starts with the construction of electric vehicles intended for the markets of Central and Eastern Europe down in Nova sela.

There are many unemployed people living in and around the Neretva valley, which is close enough yet just a bit too far away from potential employment in tourist areas like Dubrovnik. This news naturally brought a smile to the faces of many seeking steady work as in Kula Norinska, work began on the infrastructure in the future business zone in Nova sela, thus making this potentially enormous capital project start right there on ground in Dalmatia.

Twenty people would be employed to start things up at Dalmatia's brand new factory. However, when investment in the production of electric scooters, automobiles and batteries begins to add up and things gain some motion, up to 500 workers will be able to gain employment in various positions in the electric vehicle production facilities.

Make sure to follow our dedicated business page for more on China-Croatia relations, business in Croatia, the investment climate and working in Croatia, and much more.

Sunday, 31 March 2019

Croatia and China: New Agreements and Chances for Croatian Companies

Croatian companies have a chance for further growth and more exporting should Croatia decide to deepen its business ties and cooperation with China, the country which is currently undertaking the mammoth task of constructing Pelješac bridge.

As Suzana Varosanec/Poslovni Dnevnik writes on the 31st of March, 2019, at the 8th Summit of heads of government of central and eastern European countries and China, which will be held from the 9th to the 12th of April in Dubrovnik, the "Dubrovnik Guidelines" document is expected to be adopted, which will lay out the activities in this format in the forthcoming phase.

The summit on the EU and China set to take place in the Belgian capital of Brussels on the 9th of April is expected with interest, and Chinese Prime Minister Li Keqiang is coming to Croatia. There are bilateral talks between Keqiang and Prime Minister Andrej Plenković on the agenda, as well as the signing of several already concluded bilateral agreements in Zagreb. In line with the things that are set to be dealt with and concluded at the summit, Croatia and China could strengthen their blossoming cooperation with as many as ten brand new agreements. Other major Croatian expectations for the strengthening of overall relations with China are also awaited with gritted teeth, with the greatest interest being expressed in the areas of infrastructure, tourism and SMEs.

After the construction of Pelješac bridge, which is being built by China's CRBC, will yet more new infrastructural advances, such as the modernisation of Croatia's railway system, soon come to pass? The plans are also for the Chinese and Croatian prime ministers to visit this huge construction site down in southern Dalmatia. The Chinese delegation will consist of around 250 members, and that isn't including the 300 business community representatives coming to the 9th business forum ''16 plus 1''.

A total of more than 700 entrepreneurs have been registered, and many opportunities are on offer to Croatian companies when looking at entering the giant Chinese market, meaning that the initiative is on them. B2B meetings can be arranged with the help of an application created by the Croatian Chamber of Commerce (HGK), and as Croatia's SME coordinator, it will officially launch the 16 + 1 coordination mechanism for small and medium-sized enterprises. The major promise for Croatian companies which operate within a multitude of different sectors lies in exports when it comes to deeper cooperation in doing business with China.

Croatia's visibility for the Chinese is continually growing, by about fifteen percent annually, while the number of tourists from China has increased by an enormous 120 percent over the past two years alone. In 2019, a record 300,000 Chinese tourists are expected to visit Croatia, which is the fastest growing market in the whole of the Republic of Croatia.

Make sure to follow our dedicated business page for much more.

 

Click here for the original article by Suzana Varosanec for Poslovni Dnevnik

Tuesday, 26 February 2019

Could Croatian Meat Products Open Profitable Export Door to China?

By-products from Croatian slaughterhouses could potentially have some good buyers in China. What Croatia considers to be meat by-products are valued delicacies over in China, and exporting them could open up a potentially highly profitable door.

As Poslovni Dnevnik writes on the 26th of February, 2019, the Chinese are happy with what they've seen, and according to the Croatian Chamber of Commerce (HGK), ''we're now awaiting the final findings to sign a bilateral agreement.'' These comments come after Dukat and Vindija, as well as several farms and other competent Croatian institutions were recently visited by a Chinese deligation following the organisation of a visit by the Ministry of Agriculture and HGK.

As Vecernji list writes, the reason appears to be that milk and dairy products over in China are becoming more and more sought after and sell at a very good price, so along with the construction of Pelješac bridge, cooperation can now also be expected in terms of agriculture and food, such as via the potentially very profitable export of top quality Croatian cheeses and dairy products.

In addition to this potential wealth of profit, all eyes are currently also on the recent visit of the Deputy Prime Minister and Minister of Agriculture Tomislav Tolušić to China. Branko Bobetić, the director of Croatiastočar, says the total export of agricultural and food products in the EU from December 2017 to November 2018 stood at 115 billion euros, of which 11 billion was from China.

''Of that [amount] 2.2 billion euro is made up of meat and meat products from the EU, and 1.3 billion is from milk and dairy products, and as total imports of agricultural and food products from China into the EU amounted to 5.7 billion, EU exports are twice as big as imports are,'' stated Bobetić. The bulk of these meat exports are, of course, pork, and as China desires exactly the products Croatia considers to be by-products, there is a big chance there.

''Pigs' heads, bones, stomachs, ears, innards... they are delicaies there. So far, we've exported some of it to Hong Kong at an average price of 1.25 euro, while on the Chinese market, which is still closed for by-products from our slaughterhouses, such products have reached twice the price,'' said Bobetić, pointing out that based on the estimation of the amount of pigs which end up in Croatia's biggest slaughterhouses each year, there were about 5-6 thousand tons of pork by-products worth at least seven million euros in exports.

Make sure to follow our dedicated business page for more information on Croatian relations with China.

Saturday, 26 January 2019

Minister Oleg Butković Visits Company with Largest Fleet of Boats in World

As Morski writes on the 26th of January, 2019, Minister Oleg Butković spent some time in Shanghai and Ningbo where he met with the representatives of the giant shipping company COSCO Shipping.

The Minister of Maritime Affairs, Transport and Infrastructure also visited the port of Ningbo, the only port in the entire world which has shipped more than one billion tons of cargo, a statement from the Ministry of Maritime Affairs said.

In Shanghai, the Croatian delegation led by Minister Oleg Butković met with representatives of COSCO Shipping, a well respected shipping company that owns the world's largest fleet, as well as the third-largest fleet of specialised container ships.

On the same day, a meeting was held in Ningbo with representatives of the port of Ningbo Zhoushan, the port that, for the very first time, shipped over one billion tons of cargo in 2018, making it the only port in the entire world to do so. During the visit of the Croatian delegation of which Butković was a leading part, the data from the huge Chinese port showed how it has dealt with a massive 2,103,683 containers since the beginning of the year.

The visit to the port of Zhoushan was completed by visiting two of the most significant container terminals and meeting with leading port operators, which was an opportunity to exchange experiences with the Port of Rijeka's administration and talk about the projects they are preparing, whereby a clearly mutual desire for further cooperation was expressed.

The visit to Shanghai and Ningbo Zhoushan marked the end of the official visit of Minister Oleg Butković, who has been spending time in the People's Republic of China since January the 20th, and where he held a series of meetings with the aim of exchanging experiences between the two countries in the area of ​​transport infrastructure, and further enhancement of mutual cooperation.

Make sure to stay up to date with Croatia's political scene by following our dedicated politics page. If you're interested in Croatia's deepening relationship with China, give our business page a follow.

Tuesday, 15 January 2019

China and Croatia Grow Closer as Chinese Focus on Rijeka and Coast

The relationship between China and Croatia is continuing to grow ever closer, and bringing the Chinese to the Croatian coast is potentially just an introductory step in their much wider engagement on the development of Rijeka's traffic connections, both operationally and financially.

As Poslovni Dnevnik writes on the 14th of January, 2019, Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, will travel to China later this month, where he will discuss, among other things, the opportunity for them to take the concession for a new Rijeka container terminal on the coast with Chinese shipowners and port operators, according a report from Novi list.

Butković will meet with the Chinese traffic minister, representatives of CRBC, who will build Pelješac Bridge, and will also meet with representatives of the naval giant COSCO, as well as several large Chinese shipping and port companies, the potential leasers of the container terminal on that part of the Croatian coast, for which the concession would have to be announced by the middle of this year.

As China and Croatia's bond grows deeper still, the Chinese companies will start with the concession on that particular part of the Croatian coast, the development of a logistics centre and a back terminal in the entrepreneurial Miklavlje zone will probably be offered.

If an interest in making such a move is shown, then the competent Croatian ministry and the Croatian Government will begin seriously contemplating their involvement in far larger infrastructure projects on Rijeka's traffic connections, primarily the construction of a railway line from Rijeka all the way to the Hungarian border, and when looking at much longer-term plans, the possible construction of a large container terminal on the island of Krk, along with a new road-rail bridge.

Make sure to stay up to date with everything you need to know on the growing relationship between China and Croatia and much, much more by following our dedicated business page.

Thursday, 10 January 2019

Pelješac Bridge Under Construction as Access Roads Lag Behind

The Chinese need to have Pelješac bridge completed in just over thirty months time (by July 2021), but what of the actual access roads leading to it? That appears to be quite another story, and rather unsurprisingly - a long and potentially complicated one.

As Josip Bohutinski/VL/Poslovni Dnevnik writes on the 9th of January, 2019, the first signs of life of the construction of Pelješac bridge site began today.

The Chinese consortium led by the China Road and Bridge Corporation signed up for this demanding job more than five months ago, and according to the contract, Pelješac bridge has to be built within 36 months, meaning that this strategic Croatian project should theoretically be completed in the summer of 2021. While works on Pelješac bridge itself have finally begun, albeit slowly, the works on the bridge's obviously required access roads are not even close to their beginning. So far, no contractor has even been chosen to build these roads, and Croatian roads (Hrvatske ceste) has now launched two tenders for the eventual construction of the bridge's access roads.

In regard to the first part, more specifically the Duboka-Sparagovići section of the road, offers will begin being taken in the middle of June, but the decision on the contractor has not yet been made, although it has been stated in the related documentation that this decision will be made within 120 days from the day of the opening of the actual bid. It has also been stated that the chosen contractor will be required to build their section of the road within 33 months following their initial introduction to the job. Whether or not Pelješac bridge and its access roads will be completed at the same time is already questionable.

Problems can be foreseen, or better to say predicted for argument's sake, that if one takes into account the simple fact that once the contractor is finally selected, other bidders have the right to appeal, and the resolution of these procedures in such bids typically last anywhere up to three months. If Croatian roads decided on the contractor soon, that contractor would still not actually have anything to do with getting any of their work done until the middle of the year. Seven offers have come in so far, the lowest of which was sent by Integral engineering from neighbouring Bosnia and Herzegovina, ironically a country which has shown the least support for the construction of Pelješac bridge.

Back at the beginning of December 2018, a public tender for the construction of the second part of Pelješac bridge's access roads was published, and the currently estimated value of these works stands at a massive 449.1 million kuna. The deadline for bids for the second part of the road is January the 21st, 2019. The selected contractor will have a 30-month deadline for the construction of the 18 kilometre road to be put into operation, but once again, appeals are expected to follow any final decision, which translates to more waiting around, and more wasted time.

Make sure to stay up to date with the ongoing Pelješac bridge saga by following our dedicated lifestyle and politics pages.

 

Click here for the original article by Josip Bohutinski/VL on Poslovni Dnevnik

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