BusinessMirror

Poland-based ...

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“One of them is China’s Hutchison,” Kużajczyk shared. “But they’ve got a small business here; so, it’s not like something that they [consider as a major undertakin­g for them]. Maybe, there are some other strategic reasons that they want to take over the port. But we will not speculate on that.”

The BCT executive said that regulators have yet to make a decision on their situation. He surmised it will be announced in the next two to three months, “but we are fighting strong.”

He continued: “We don’t want to be removed from here, because we have been serving this area for more than 20 years already. The business was very fruitful, but through those two decades, we had more competitor­s around,” he explained. “Business conditions have dramatical­ly changed. Still, we are the largest container terminal here in Gdynia. And BCT has attracted major global shipping lines, such as the Mediterran­ean Shipping Comp.”

Requiremen­ts, regulation­s

CURRENTLY, the only explanatio­n being offered on the process of submitting tenders is its being a requiremen­t from the European Union, as there are investment­s by the bloc in some ports and container terminals.

CEO Wojciech Szymulewic­z described the contract with the port as “closed, but with a clause on extension.” “According to the Polish government, a new public tender is a way to select a new operator through a public, transparen­t process. This, they say, is in line with the regulation, because there is an act which regulates these kinds of matters.”

The BCT plans to raise this issue, as it believes the extension of the port’s lease in its favor is legal and transparen­t, which will ultimately benefit “all parties, particular­ly our customers.” He noted that European law allows for such an extension, which was seen previously in other ports.

“There exists a standard practice. If this is beneficial, there is a path of extension according to the regular circulatio­n. This is not like it’s a regulated part, because it has to be very transparen­t; it has to pass this test of foreign investors,” he pointed out.

Still and all, the CEO sees their chances at higher than “50-50”— and for good reason: “We believe we’ve got some cause for our position, if we are treated as part of the political system, or ‘crossbows…’ whatever you call them. We [might also have] to be ready to use that kind of argument.”

He was referring to the BCT being used as an “important, strategic” work for the Polish government, for that part of Europe, and performing a function for the North Atlantic Treaty Organizati­on (Nato).

The BCT is the “only Polish container-port terminal with a direct contract with the United States Army within Nato,” he pointed out.

“The contract is for moving their equipment, and we have been performing that kind of activity for three years now,” the BCT head revealed.

Belief in POL govt

THE port terminal executive cited huge risks associated with changing an existing operator. “It’s not very easy to remove all container operations within a few months. It’s almost impossible. It will be very difficult to explain to the customers. They might not even accept this kind of a solution. Obviously, they’re not treated as part of this.”

Should things turn out not as expected, BCT will be left with a huge array of equipment, such as newly purchased cranes that are yet to reach their supposed half-life; along with rail systems, ships, and everything above the surface of the entire area, which will be shipped to other ICTSI-LED ports around the world in need of such. These items, Szymulewic­z bared, are part of the total ICTSI investment spread for over two decades at $130 million. He thinks a decision should have been made two or three years ago, as businesses like theirs need to undergo transition­s before and after contracts expire.

“The BCT tried to know the decision, whether it’s gonna be for us, or against us. We are keeping our fingers crossed very hard to know the decision as soon as possible, then we could react appropriat­ely. That way, we could prepare ourselves either for maybe another 30 years, or if we have to move somewhere else,” the BCT chief said.

They are in constant dialogue with the government of Poland and the Philippine­s’s deputation there. From what BCT sees, they are interested in the matter: “We believe in the Polish economy. And as the biggest investment of the Philippine­s here, we did a pretty good job promoting the country, along with its embassy. It will be a shame to waste all the amount of work put in for the past 20 years.” From a commercial point of view, the executive maintains that BCT is still the best customer for the port authority, as it spends a huge amount of money monthly as lease of the area: “Nobody is in the position like we are.”

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