Romania confirms interest in buying Moldova's Giurgiulesti port

Romania confirms interest in buying Moldova's Giurgiulesti port
Moldova's only port became more important after Russia’s blockade of Ukrainian Black Sea ports, providing a report for Ukraine to export to international markets. / Giurgiulesti International Free Port
By bne IntelliNews August 29, 2024

The Romanian government has confirmed that it aims to purchase the Giurgiulesti International Free Port, the only port in neighbouring Moldova, situated on the River Danube. 

The move is seen as strategically significant for regional logistics. The port, at the confluence of Danube and Prut rivers, became more important after Russia’s invasion of Ukraine when it was one of the routes to transport grain and other exports out of Ukraine during the Russian blockade of the country’s Black Sea ports. 

The government of Romania approved the start of negotiations with the European Bank for Reconstruction and Development (EBRD) during a government meeting on August 28. 

In a memorandum adopted on August 28, Romania described the Giurgiulesti International Free Port as "a logistics node of strategic importance" and highlighted its "well-connected broad and narrow gauge railway lines”. 

The port currently hosts a regular container block train link between Giurgiulesti and Constanta, a major Romanian port on the Black Sea. This connection has helped alleviate truck traffic and provided an alternative to lengthy border wait times, according to the Romanian government's statement.

The acquisition, if finalised, would be executed through Romania's National Company Administration Porturilor Maritime Constanta, which is controlled by the state via the Ministry of Transport. The memorandum said that acquiring the port of Giurgiulesti could enhance Romania’s competitive edge against other Black Sea and EU ports, transforming Constanta into a hub for Central and Southeast Europe.

The potential deal “is about the compatibility, which already exists, and the fluidization of an input, a consolidated cargo traffic, to transform this ecosystem, the Port of Constanța, into one of the most important cargo traffic convergence points in this part of Europe,” government spokesperson Mihai Constantin told a briefing on August 28. 

Responding to a query from bne IntelliNews, an official from the EBRD confirmed the bank's intention to sell PILG and its commitment to ensuring a transparent sale process. “EBRD wants to find a reputable buyer for the port. We are often approached by various interested buyers, but we are currently focusing on working with the government of the Republic of Moldova to pave the way for a transparent sale process,” the EBRD representative said.

However, the situation remains complex as two separate entities manage port infrastructure in Giurgiulești: the Giurgiulești State Port and the Giurgiulesti International Free Port. While the EBRD owns the latter, the Moldovan government clarified on August 28 that it has no plans to sell the state-owned port, reported Europa Libera.

The Moldovan government also confirmed to Europa Libera that multiple international investors are in talks regarding the sale of the free port, including parties from Romania, Turkey, the Netherlands and Denmark.

The Romanian government's interest in the port is not new. Prime Minister Marcel Ciolacu initially announced plans to acquire the port last autumn, citing Romania's strategic role in post-war reconstruction efforts in Ukraine. "Romania seeks to take over Moldova’s sole port, Giurgiulesti on the Danube, as the country prepares to play a key role in the reconstruction of Ukraine after the war," Ciolacu said in an interview with Digi24 on September 28, 2023.

However, at the time Moldova’s Minister of Infrastructure Andrei Spinu cast doubt on the likelihood of any imminent sale. Commenting on Romania's interest in acquiring the port from the EBRD, Spinu stressed that such negotiations could not proceed without the involvement of the Moldovan government. He added that several legal issues surrounding the Danube International Port remain unresolved, complicating any potential transfer of ownership.

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