Global Ports approves 2014 CAPEX

Global Ports Investments PLC announces that the Board of Directors has approved the Group’s capital expenditure (CAPEX) program for 2014, the company said in its press release.
Driven by the pending acquisition of NCC Group Limited, previously announced on 2 September 2013, following the completion of which significant additional capacity will be provided, the Group has been able to optimise its CAPEX plan. The Group’s consolidated CAPEX for 2014 is expected to be about USD 36 million on a cash basis. Approximately 90% of CAPEX is expected to be spent in the Russian Ports segment and will include:
• Investments in both equipment replacement and in the yard storage area to ensure continuous reliable service levels and to create additional capacity in VSC. It is expected that VSC will be able to increase capacity to 650 thousand TEU or by 100 thousand TEU during the second half of 2014;
• Reconstruction of rail tracks and the acquisition of 76 flat cars to support the rapidly growing block train service organised by VSC;
• Further investment in PLP infrastructure to lay the groundwork for the next phase of capacity expansion including the reconstruction and expansion of PLP’s internal railway infrastructure and road system, further upgrade of its electricity capacity and engineering work on infrastructure; and
• A further upgrade of the existing heavy Ro-Ro and car handling terminal at PLP.