GEK TERNA SA (Bloomberg: GEKTERNA GA / RIC: HRMr.AT) announces that it has signed today, as an initial shareholder and member of the special purpose company “SARISA SUB-CONCESSION PORT OF KAVALAS PHILIPPOS II STATE-OF-THE-ART COMPANY”, the sub-concession agreement regarding the right to use, operation, maintenance and exploitation of a multi-purpose station in part of the “Filippos B” port of the Kavala Port Organization S.A. for a period of 40 years, with the Greek State, the Public Private Property Development Fund (TAIPED S.A.) and the “Kavala Port Authority S.A.” as counterparties.
The special purpose company with the name SARISA SUB-CONCESSION S.A. (the sub-concessionaire) which was established for the purposes of the sub-concession agreement between BLACKSUMMIT FINANCIAL GROUP INC (55%) – GEK TERNA S.A. (35%) and EUROPEAN INVESTMENTS AND AEROSPACE ENTERPRISES LLP (10%), through the contract assumes the right to exclusive use of the port for commercial exploitation, maintenance, development, provision of services and operations, as well as imposition and collection of fees, in accordance with the specific terms of the contract.
Today, the main activity of the “Filippos II” port is the handling of general cargo and dry bulk cargo. In addition, its port facilities can handle containers, while the port has ready-to-use port infrastructure and cargo handling and storage areas.
The sub-concession of the “Philippos II” port includes:
- the existing wharf with paved area, with an area of approximately 117,000 sq.m.,
- an additional unpaved area under restoration, with an area of approximately 165,000 m2,
- the detached pier/breakwater
- commercial activity (general cargo, dry bulk and occasional container handling) and
- specific items of existing port equipment.
The financial consideration of the sub-concessionaire to TAIPED SA. amounts to 33.9 million euros, while the sub-concessionaire is expected to make investments totaling 36 million euros, including the mandatory and heavy maintenance costs related to the supply of new equipment, replacement of equipment, infrastructure – superstructures, software, hardware etc., as well as in investments to serve the needs of the Port Authority, the Shipping Service and the customs office.
The General Manager of Business Development & Executive Member of the Board of Directors of GEK TERNA Group, Manos Moustakas, pointed out after signing the contract: “The port of Kavala is soon to acquire the position it deserves, capitalizing on its comparative advantages, but also highlighting its importance for the wider region. Through integrated strategic planning, targeted and substantial investments, we aspire to create added value for all involved, stimulating employment, protecting natural wealth and enhancing the region’s extroversion, to ultimately create a modern reference point for Balkan freight transport , achieving the essential prominence of the strategic role of the port ‘Filippos B’ of Kavala».
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