Port of Gdynia Authority S.A. in Poland has announced the launch of a market sounding for private partners and financial institutions for the construction of the Outer Port in the Port of Gdynia project to be implemented as a Public-Private Partnership.

This project is a strategic investment of the Port of Gdynia Authority S.A., enlisted in the Polish government’s Seaports Development Programme. The project involves the construction of a new deep-sea port terminal together with a container terminal with an annual transshipment capacity of 2.5 million TEU. The new facility will enable oceanic Baltimax size container ships to dock in the port.

The estimated capital expenditures for the Outer Port total EUR 787 million (US$ 870.12 million). The project is scheduled for completion by 2028.

The preferred scheme of project delivery is the Private-Public Partnership, with the private partner:

• designing and building the project infrastructure;
• financing the design and construction expenditures;
• maintaining and operating the infrastructure built or part thereof; in this regard, demand level risk might possibly be shifted onto the private partner and a payment mechanism based on revenues from the operation and management of the terminal might be implemented.

This market sounding is part of the project appraisal carried out by a consortium of transaction advisors, namely EY, WYG International and Domański Zakrzewski Palinka (DZP). Its purpose is to assess the market’s potential interest in the project and to verify its preliminary assumptions proposed by the Port of Gdynia Authority S.A. and the transaction advisors.

The authority seeks to establish cooperation with experienced private partners and financial institutions. Accordingly, authority invites all entities that have implemented the following projects (individually or as a Consortium) to take part in the market test:

• operation (or management) of a maritime container terminal (or container terminals) with an annual capacity of at least 1 million TEU; or
• operation (or management) of a maritime LNG terminal (or terminals) with an annual capacity of at least 5 billion Nm³; or
• operation (or management) of other cargo terminals (or terminals) with an annual capacity of at least 10 million tonnes; or
• financing the implementation of an infrastructure project worth at least EUR 250 million delivered under the PPP scheme or a concession, another form of partnership with the public sector or a project finance scheme.

The deadline for applications is February 7, 2020. The market research will be conducted until the information necessary to achieve is obtained. Details on applications and market sounding are here.