Agreement will grant P&O Ports rights to operate Novi Sad for an initial 25 years with an option to renew for another 25 years
Dubai-owned P&O Ports has announced an agreement to operate the port of Novi Sad, Serbia as part of a long-term investment plan to upgrade equipment and services.
The agreement will grant P&O Ports rights to operate Novi Sad for an initial 25 years with an option to renew by both parties for another 25 years on expiry.
Novi Sad is located on a 24-hectare site on the Danube river and has an estimated throughput of around 1 million tons a year.
P&O Ports will retain exclusive rights to undertake all waterside operations, container handling, project cargo and fertilizer activities.
The current quay is 500m long and features include cargo handling, warehousing facilities, storage of bulk cargo and general cargo connections to the national railway network.
The development plan will include construction of 189m of new vertical quay wall, silo capacities, handling equipment and refurbishment of existing machinery plus installation of a terminal operating system.
In partnership with the Serbian Ministry of Construction, Transport and Infrastructure, the construction of container terminals will also be considered.
P&O Ports chairman, Sultan Ahmed Bin Sulayem, said: “The Port of Novi Sad provides connections with DP World Constanza, Romania, with onward handling of bulk cargos in Jebel Ali Port, Dubai. It also has capacity to connect with our operations elsewhere adding value to customers and our partners in getting goods to local, regional and international markets. There is also an opportunity to handle bulk commodities in the steel and construction sectors, food and coal.
“This agreement is another example of our strategy to provide further services across the global supply chain, creating efficiencies of our customers and supporting the development of nations.”
Cereals are the largest export commodity of Serbia and the World Bank has projected increasing GDP growth of 4 percent from 2020 for the next decade.
Major trade partners include all European countries with China being the third largest import partner. Exports are transported to markets primarily by barge out of river ports on the Danube with cargo being transported to Constanza in Romania and shipped to the Middle East and other ports.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.