Privatization of port of Rijeka

CEO of port of Rijeka (Luka Rijeka) Vedran Devcic has confirmed that its Board is preparing three possible models for privatization of Port of Rijeka, following an order by the Minister of Maritime Affairs, Transport and Infrastructure Sinisa Hajdas Doncic

  CEO of port of Rijeka (Luka Rijeka) Vedran Devcic has confirmed that the port of Rijeka Board is preparing three possible models for its privatization, following an order by the Minister of Maritime Affairs, Transport and Infrastructure Sinisa Hajdas Doncic, reports pomorac.net. Luka Rijeka will remain in Croatian hands in the near future and the plan is that in the first phase of recapitalization the majority (50 percent plus one share) will remain in the hands of the state. The realization is expected to be finalized by the end of this year when a maximum of 35 per cent stake in port shares will get a new owner.

  At the same time the company workers would be given the option of buying an additional block of shares, possibly at a nominal price of 100 kuna, and the maximum individual amount for each worker would be 7,500 euros. In this way the outcome of the first privatization of Luka Rijeka would be rectified, when each worker could not enroll shares worth 20,000 Deutschmarks, as foreseen by law. But the question remains how the workers will respond to the option of buying stocks, especially if the price offered is at nominal value, or about 100 kuna per share.

  CEO of Luka Rijeka Vedran Devcic added that absolutely the best evaluated proposal for recapitalization was the one in which the interest of potential investors was tested. That interest is certainly there for pension and investment funds, which are looking for an investment that will, in time, bring additional revenue.

  He said that the Board was free to reflect upon the development of the company and propose to the Government by mid-May the plan for its development. Instead of classic privatization or looking for a strategic partner on terminals as the best rated model of capitalization they chose the one through which an independently realized investment project would be possible, he added.

  This mainly refers to the project of realization of an internal terminal for containers and other types of cargo in Škrljevo. This investment is estimated at around 40 million euros, as well as investment in the reconstruction of port machinery, said Devcic, who believes the company is a safe investment because in the next four to five years the value of the company will grow significantly, due to the completion of a series of investments such as the new quay Brajdica and because of huge investment in railways and roads, which in the coming years should lead to a significant increase in port traffic.