State-owned Romanian entity granted authorization for acquisition of Moldova's major seaport Giurgiulesti
In a significant development, the European Bank for Reconstruction and Development (EBRD) is close to selling Danube Logistics, the operator of Moldova's main port, Giurgiulesti International Free Port (PILG), to Romania's state-owned operator of the Port of Constanta.
Located at km 134 on the maritime section of the Danube, PILG boasts a maximum water depth of 7 meters and is capable of receiving both river and sea vessels. With an oil terminal, two grain terminals, a terminal for other goods, and a business park, PILG serves as Moldova's main gateway to sea and river-borne trade, boasting integrated multi-modal connectivity through river, road, and rail networks.
The sale process, which began on April 14, 2022, attracted multiple binding offers following a competitive procedure. The winning bid, yet to be announced by the EBRD, has been identified as Constanta Port, with the Romanian state company offering about $62 million for the purchase and committing to invest at least $28 million more in the port's infrastructure. However, the deal has not yet been finalized, and the payment is expected to be made by December 31, 2025.
The decision to greenlight the Romanian bid was made by Moldova on July 11, 2022. However, the sale might depend on the resolution of pending legal issues and the completion of the payment process. Notably, Moldovan president Maia Sandu has stated that the final sale of PILG will not be approved until the legal case involving Alyiev and former owner Thomas Moser is resolved.
PILG's historical ownership has been opaque, with the operator held by offshore entities and traded through confidential transactions. Azeri investor Rafiq Alyiev has contested the EBRD's claim to PILG, having seized its assets in court in 2022.
The Port of Constanta, operated by the National Company Administration of Maritime Ports (CNAMP), is one of the largest Black Sea ports, with three areas: Constanta, Midia, and Mangalia. If completed, the deal will consolidate the position of Constanta Port as the largest Black Sea port, making it a key player in the reconstruction of Ukraine.
The EBRD took over PILG through an offshore firm in 2021. The operations of PILG have been affected by frequent regulatory changes made without public consultation. The EBRD is progressing with advanced negotiations with the shortlisted bidders for the sale of PILG, including companies from Turkey, Bulgaria, the Netherlands, Denmark, and the Romanian state-owned operator of the Constanta port, CNAMP.
Despite these challenges, Constanta Port has been chosen as the preferred bidder, and the sale process is moving forward. However, there is ongoing legal action by the minority shareholder of the Port of Constanta, Fondul Proprietatea, to annul the decision. The official announcement of the final sale might depend on the resolution of these pending legal issues and the completion of the payment process.
The potential sale of PILG, Moldova's main port, to Romania's state-owned operator of the Port of Constanta could impact the energy, finance, industry, and public-transit sectors, considering PILG's multi-modal connectivity and its role as a gateway for Moldova's sea and river-borne trade. If the deal, which is yet to be finalized by December 31, 2025, is completed, the Port of Constanta, already one of the largest Black Sea ports, could consolidate its position and significant influence, particularly in the transportation and reconstruction of Ukraine.
