August 23, 2019 [Steel Guru] – Together with the Klaipeda State Seaport Authority, oil and liquefied natural gas terminal operator KN has signed a tripartite agreement on reconstruction of KN berth No 1 with the winners of the public tender.
KN says the winners of the public tender, which was valued at EUR 22.5 million, were JV partners UAB Tilsta and UAB Fegda. It is planned that the partners will carry out construction and dredging work over the course of almost two years.
On the basis of the tripartite construction agreement signed this week, it is planned to adapt the currently unused 235-metre section of Berth No 1 for stevedoring and to dredge the adjacent ship channel to a depth of 17 metres. Once the three planned stages of reconstruction are completed, KN will be able to receive and load three tankers at a time at the Klaipeda oil terminal – currently, it can only receive two tankers.
Mr Darius Silenskis, KN Oil Business Director and acting CEO, said that “The market has been dictating the need for these changes for some time now – the amount of cargo is growing, new types of cargo are emerging, and customer expectations are changing. The new KN oil product storage tank park that is currently operating in pilot mode demonstrates this need – we are already loading a greater variety of products and testing a wider range of loading schemes. This dictates the need to develop and adapt the existing infrastructure, which will give us a competitive edge over other terminals in the region, and also allow us to retain existing customers and attract new ones. The berth reconstruction project will bring added value not only to KN, but also to the entire logistics chain consisting of the Port of Klaipeda, the railway, shipping companies, and Lithuanian and international business partners.
Under the tripartite agreement signed, KN undertakes to invest in installation of the superstructure for the works planned to be carried out, and the Port Authority undertakes to invest in the quay infrastructure.
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