Global Ports allocates $36M of capital expenditures for 2014
The Board of Directors of Global Ports has approved for the year 2014 the volume of capital expenditures for the year 2014 in the amount of $ 36 million, the Group said in a press release.
The Group will invest at least 90% of the costs in the development of Russian port assets.
According to the Group’s capital expenditure (CAPEX) program for 2014 the funds will be spent in particular as 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.
Global Ports Investments PLC is the leading operator of container terminals in the Russian market. Global Ports’ terminals are located in the Baltic and Far East Basins, key regions for foreign trade cargo flows. Global Ports operates three container terminals in Russia (Petrolesport and Moby Dik in St. Petersburg, Vostochnaya Stevedoring Company in Nakhodka) and two container terminals in Finland (Multi-Link Terminals Helsinki and Multi-Link Terminals Kotka). Global Ports Group also owns 75% in Yanino Logistics Park, located in the vicinity of St. Petersburg, and a 50% share in the major oil product terminal, AS Vopak E.O.S., in Estonia. Global Ports’ consolidated revenue for the first six months 2013 was $249,135,000. Adjusted EBITDA for the first six months of 2013 was $137,709,000. The Russian Ports segment handled a total container throughput of approximately 707,000 TEUs in the first six months of 2013 (excluding Yanino).