Klaipeda Port to use EU funds for dredging project

Klaipeda State Seaport Authority and the Central Project Management Agency have inked a contract for assignment of the EU funds to dredge the navigation channel up to -15 meters in Klaipeda Port. The European Union granted 17.3 million euros for the project.

With the completion of the dredging works on the navigation channel, the permitted draught of vessels will be increased up to -13.8 m from the northern part of the port to Malku Bay.

According to the Klaipeda State Seaport Authority’s latest announcement, this will allow the port to fully load the vessels calling at the port and reduce navigation traffic, shorten cargo transportation time, reduce air pollution, and even more ensure navigation safety.

“Global logistic market trends are based on the economies of scale: that the larger vessels are used for more cost-effective waterborne cargo transportation,” said Mr. Algis Latakas, CEO of Klaipeda State Seaport Authority.

“The number of such vessels calling Klaipeda Port is also growing. According to latest statistical information, the capacity of vessels calling at Klaipeda has grown by 26.6 % in the last 6 years.

“If we want to adjust successfully to the global changes in the market, we have to take far-sighted decisions and continuously invest in infrastructure improvement.”

This dredging project is also very important from the environmental point of view, the authorities stated.

Due to the fact that shipping companies cannot use of vessels in the most effective way, (cargo transportation so far is carried out by partly loaded or smaller vessels), comparatively more resources are used for transportation of the same quantity of cargo.

Such situation results in longer transportation time and the higher transportation costs and for the same quantity of cargo. Moreover, intensified navigation has negative impact on air quality, said the port.

The dredging works should start in the beginning of next year and the port depth will reach -15 meters until spring 2022.

It is planned to invest 483 million euros into expansion of Klaipeda Port in 2021–2024. This project will be co-financed from the EU structural funds.

The majority of resources will be assigned to construction and reconstruction projects of the port quays and the dredging works.

“The adjustment of the infrastructure to the big-tonnage vessels would satisfy the needs of the navigation market to carry cargoes by larger vessels and would allow endeavouring at cheaper carriage costs because of economy of scale,” added Latakas.

“Besides, it would increase competitiveness of the Lithuanian exporters – the possibilities would be created to carry the Lithuanian goods by large vessels and to save carriage costs. Less vessels would come because of their larger capacity, thus reducing the emissions from vessels.

“We also attempt to receive financing for the projects that would help to develop business of ship building and repairs necessary for the region’s economic vitality and to adjust facilities present in the port to make wind power plants.

“The principles of sustainable navigation are also receiving big attention; we hope to get money to modernize the fleet of the port’s authority and to purchase a dredger – new vessels would be driven by electricity or alternative, environment-friendly fuel.

“It is planned to create a modern pilotless hang-glider that would allow to con in the remote mode under extreme conditions. Besides, several digitization projects of the port’s management are also included into the plan.”

The European Commission is preparing the Recovery and Resilience Facility while implementing the tools of the European Union’s response to Covid-19 crisis.

It is planned to finance the reforms and investments that would induce economic, social and territorial cohesion and that would increase resistance to the crisis.

The focus is also made on the investments that would contribute to fighting the climatic changes and to digitization. The planned budget of this tool for Lithuania is 2.43 billion euro in the form of subsidies and 3 billion euros in the form of loans.

Reconstruction of the symbol of Klaipeda Seaport – the breakwaters – was officially launched a couple of months ago.

These breakwaters, protecting the Seaport from sea waves, were constructed more than a century ago.

Reconstruction of the breakwaters and capital dredging of navigation channel will open the access of the largest vessels entering the Baltic Sea, the port stated.

“This project is highly significant both to Klaipeda Seaport and the entire country. The Seaport is one of the most important driving force of the economy of Lithuania. The highly developed Seaport generates income to the State budget and promotes the regional economy viability,” the minister of Transport and Communications of the Republic of Lithuania, Jaroslav Narkevič, said.

“I am glad to mention that even during this very complicated period Klaipeda Seaport remains the leading port of the Baltic countries.

“In order to remain on top we must adapt constantly to changing market conditions, invest into the Port development and improvement  and create conditions to open the sea gates for the large vessels.“

The total value of reconstruction works is approximately EUR 49 million (including VAT). EU Cohesion Fund will finance this project as well.