8 August 2019
The operator of KN, oil and liquefied natural gas (LNG) terminals, together with SE Klaipėda State Seaport Authority (KSSA), has signed a tripartite agreement on KN-owned quay no. 1 reconstruction works with the winners of the public tender. $ 22.5 million The joint tender of joint venture partners Tilsta UAB and Fegda UAB won the public tender for the value of EUR 100 million (excl. VAT). It is planned that in almost two years the partners will carry out construction works and dredging of the water area.
On the basis of the tripartite construction contract signed this week, the quay no. 1 to deepen the currently unused 235 metres long stretch for ship loading and the adjacent shipping channel to a depth of 17 meters. After completion of the planned three reconstruction stages, KN will be able to receive and load 3 tankers at a time in Klaipeda Oil Terminal – until now it was possible to accept only two tankers.
“The market has been dictating the need for these changes for some time – the amount of cargo is growing, new types of cargo are emerging, and customer expectations are changing. The new fleet of light petroleum product tanks currently operating in pilot mode proves this need – we are already loading more variety of products and testing different loading schemes. This dictates the need to develop and adapt the existing infrastructure, which will not only gain a competitive advantage over other terminals in the region, but will also enable us to retain existing customers and attract new customers. The quay reconstruction project will bring added value not only to KN but also to the whole logistics chain consisting of Klaipeda port, railway, shipping companies, and Lithuanian and international business partners ”, – said Darius Šilenskis, Business Director of KN Petroleum,
Under the tripartite agreement signed, the CN undertakes to invest in the construction of the superstructure for the works to be carried out and the Port Authority in the infrastructure of the quay.
“These are extremely significant works that will further increase the competitiveness of Klaipeda Port. By rebuilding the quays and providing a maximum depth of 17 meters to them, KN will be able to accommodate larger and larger vessels. The reconstruction of the quays is planned to be carried out in several stages, the work being carried out in such a way that the loading is not disturbed. In the first phase, the Port Authority will invest 22.52 million litai. euros. In parallel with this project, the Port Authority implements other public infrastructure improvement projects, such as pier reconstruction and dredging. All this will make it even easier for KN to accept the largest tankers capable of entering the Baltic Sea, ”said Vidmantas Paukštė, Director of Infrastructure of the Klaipeda State Seaport Authority, acting as the Director General.
After the completion of the first phase, two more quay reconstruction stages are planned, each with an estimated duration of about 2 years. During Phases II and III, it is planned to reconstruct the currently used quay infrastructure by installing the Bolverkas (anchored façade span walls) quay structures. In parallel, reconstruction of breakwaters (port gates) and deepening of the shipping canal up to 17 meters are planned. As a result of the project, KN will be able to accept vessels with draft up to 17 m and increase loading capacity.
The new infrastructure project will be subject to the highest safety and environmental standards and will incorporate progressive technologies that will make the processes even more efficient and expeditious, without interfering with the ship loading process.
“The reconstruction of KN-controlled quays is planned in close coordination with the KSSA and other countries – we strive to ensure that our services do not affect our services to our clients and ensure the availability of tankers at two quays throughout the project,” emphasizes D. Šilenskis.
The cost of Phase I portion of the work attributed to the CN amounts to just over $ 1.7 million. euros. Phase I reconstruction is scheduled to begin within a month.