Wednesday, 22 January 2020

Chinese Have Completed More Than Third of Works on Peljesac Bridge

As Morski writes on the 21st of January, 2020, the Chinese were introduced into the construction of the long awaited Peljesac bridge back at the end of July 2018, and the total value of the works carried out so far, according to Croatian Roads (Hrvatske ceste), stands at 619.9 million kuna.

This means that more than a third of the planned works have already been done on the future bridge in Dalmatia, since the total contracted price of its construction is 2.08 billion kuna, according to a report from Vecernji list.

China Road and Bridge Corporation (CRBC), the Chinese company contracted to build Peljesac bridge, has committed to construct the bridge within three years of the launch of the works, which means by the end of July 2021. The first contingent of segments of the steel span structure of Peljesac bridge will apparently start moving from two plants in China over to Croatia at the end of this week.

Croatian Roads says they have received confirmation from CRBC that the first 29 segments of the span structure will head to the construction site of the bridge on January the 25th, on Chinese New Year. It is foreseen that ships with construction material will travel to Croatia for a maximum of 35 days, but it is expected that they will arrive at the construction site as soon as possible. Thus, it is anticipated that the first segments of the span structure will be delivered during the second half of February.

There are currently 629 workers at the Peljesac bridge construction site, of which 132 are technical and support staff, and the rest are machinists and sailors on board ships, as well as machinery. Currently, 21 vessels are being used for the construction of the bridge, namely cranes, barges for the carriage of structural members, ferries, tugboats and of course personnel ships carrying staff members.

As for the construction of access roads, more specifically the Duboka - Sparagovici/Zaradeze section, the contractor of which is Austria's Strabag, things finally got moving on the 13th of November 2019. According to Croatian Roads, the project documentation, location and building permit have all been formally submitted to the contractor, and they have submitted the timetable for the work under review for approval. By the end of December 2019, Strabag had begun organising construction sites, clearing the routes and will begin with more serious construction work this month.

Greece's Avax, however, got the green light for the construction of the Ston bypass, the Sparagovici/Zaradeze - Prapratno and Prapratno - Doli subdivisions, and it was put into operation on the 5th of December last year. Avax has also officially submitted project documentation, location and building permits, and the company has submitted a timetable for the works, which is currently under review by representatives of engineers and Croatian Roads. Avax started organising the construction site by the end of December 2019, and this month they'll also begin with preparatory work.

Make sure to follow our dedicated lifestyle page for more on Peljesac bridge.

Thursday, 23 May 2019

A Return to Old Glory for the Port of Rijeka? Potentially...

As Suzana Varosanec/Poslovni Dnevnik writes on the 23rd of May, 2019, investors have recognised the potential, which for the Port of Rijeka, means a step forward to the leading container-logistics centre in the Northern Adriatic.

With new investments, Rijeka is being returned to the former position that it once enjoyed at the tail end of the 1970's, when it was a large and significant port centre. Those have been the type of messages sent to the director of the Rijeka Port Authority, Denis Vukorepa, on the occasion of the completion of the Zagreb Deep Sea Container Terminal (Zagreb DSCT) project in the Port of Rijeka.

There has been a great level of interest from potential concessionaires, including as many as seven of the world's largest operators from Europe, the Middle East and the Far East. Officially, the Chinese, and also the CRBC which is currently building Pelješac Bridge, have made themselves known.

The Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, will also visit the terminal at which the works are taking place today. To briefly recall, the most important capital project in the Rijeka Gateway Project II, worth 112.5 million euros, of which 84 million euro is from a World Bank loan, while 28.5 million euros is financed by the state. However, in addition to those amounts, the Rijeka Port Administration has continued to invest 40-50 million euros in its own investments.

When this part is completed, individual talks are expected in June and July when potential concessionaires will present their respective terminal management concepts.

It's certainly not excluded that the interest for the second phase of the construction of the terminal will gain traction, and for which permits have been prepared. The expected term for the signing of a contract currently stands at the end of September.

Traffic in the Rijeka basin in the container area has increased by about ten percent over more recent years, but a more dynamic growth in freight volumes and cargo flow is expected, which is the subject of interest for rail freight operators, and is expected to attract a larger volume of truck traffic.

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

 

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

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

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