site.btaTransport Ministry Seeks Strategic Investor to Boost Cargo at Port of Varna

The Ministry of Transport and Communications will seek partnership with a strategic investor to increase cargo turnover at the Port of Varna, said Deputy Prime Minister and Transport Minister Grozdan Karadjov. He was speaking Monday during a press conference at the Port of Varna, where he visited to discuss the future development of the Varna-East, Varna-West, and Ferry Complex - Varna terminals with trade union representatives. 

Karadjov said that the focus of such a partnership should not be on the amount of investment or on annual payments, as the State and the fiscal system would benefit from transit freight traffic. "This is not a concession, but a broader form of partnership, because the case is special and requires unconventional solutions," he said, adding that he aims to attract such a partner next year as part of government policy.

Asked whether there is a preferred country or region from which potential investors might be sought, Karadjov explained that no such criteria have been set, and the search would follow only the security benchmarks established by the European Commission, meaning cooperation would be limited to states from which no risks to security are expected.

The Minister noted that the Port of Varna is of strategic importance for both the city and the country, as together with Burgas it serves as one of Bulgaria’s two major maritime gateways for sea-borne imports and exports. Varna lies on the Trans-Caspian Corridor, one of the most important and shortest routes linking eastern states whose trade volumes reach tens of millions of tonnes. "That is why we see the future partner as an operator with strong logistics capacity who can ensure that part of this cargo flow is directed through the Black Sea to Varna and Burgas, making the route shorter, faster and cheaper," Karadjov said.

He further explained that the approach to developing the Port of Varna differs fundamentally from previous procedures in which the State sought upfront fees and higher concession payments. "This time we are turning the equation around, focusing on finding an 'angel' investor who can bring a high level of cargo through Varna," he said.

According to Karadjov, the anticipated increase in cargo turnover will require modernization of port infrastructure and the creation of additional berths. These elements should form part of the investment programme of the future strategic partner, together with commitments to higher revenues and remuneration.

The meeting was attended by representatives of the Confederation of Independent Trade Unions in Bulgaria (CITUB), the Confederation of Labour Podkrepa, the Zashtita (Protection) National Trade Union, and the Bulgarian Chamber of Shipping. Analyses by the World Bank concerning the future of the Port of Varna are expected to be completed within a month, Karadjov said.