Port of Ploče
Encyclopedia
The Port of Ploče is a seaport in Ploče
Ploce
Ploče is a town and a notable seaport in the Dubrovnik-Neretva County of Croatia.The total population of Ploče is 10,102 , in the following settlements:* Baćina, population 564* Banja, population 176* Komin, population 1,222...

, Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...

, near the mouth of the Neretva
Neretva
Neretva is the largest river of the eastern part of the Adriatic basin. It has been harnessed and controlled to a large extent by four HE power-plants with large dams and their storage lakes, but it is still recognized for its natural beauty, diversity of its landscape and visual...

 river on the Adriatic Sea
Adriatic Sea
The Adriatic Sea is a body of water separating the Italian Peninsula from the Balkan peninsula, and the system of the Apennine Mountains from that of the Dinaric Alps and adjacent ranges...

 coast. It was formally opened in 1945 after a railway was built as a a supply route to connect the site with industrial facilities in the Sarajevo
Sarajevo
Sarajevo |Bosnia]], surrounded by the Dinaric Alps and situated along the Miljacka River in the heart of Southeastern Europe and the Balkans....

 and Mostar
Mostar
Mostar is a city and municipality in Bosnia and Herzegovina, the largest and one of the most important cities in the Herzegovina region and the center of the Herzegovina-Neretva Canton of the Federation. Mostar is situated on the Neretva river and is the fifth-largest city in the country...

 areas of Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...

, which was then part of Yugoslavia
Socialist Federal Republic of Yugoslavia
The Socialist Federal Republic of Yugoslavia was the Yugoslav state that existed from the abolition of the Yugoslav monarchy until it was dissolved in 1992 amid the Yugoslav Wars. It was a socialist state and a federation made up of six socialist republics: Bosnia and Herzegovina, Croatia,...

. , it ranked as the second largest cargo port in Croatia—after the Port of Rijeka
Port of Rijeka
The Port of Rijeka is a seaport in Rijeka, Croatia, located on the shore of the Kvarner Gulf in the Adriatic Sea. The first records of the port date to 1281. It was the main port of the Kingdom of Hungary in the 19th century and the beginning of the 20th century, of Yugoslavia between World War II...

—with a cargo throughput of 4.5 million tonnes, consisting mostly of general cargo and bulk cargo
Bulk cargo
Bulk cargo is commodity cargo that is transported unpackaged in large quantities. This cargo is usually dropped or poured, with a spout or shovel bucket, as a liquid or as a mass of relatively small solids , into a bulk carrier ship's hold, railroad car, or tanker truck/trailer/semi-trailer body...

, including 20,420 twenty-foot equivalent unit
Twenty-foot equivalent unit
The twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals...

s (TEUs). In 2008, the Port of Ploče recorded 2,555-ship arrivals. It is managed by the Port of Ploče Authority.

The Port of Ploče recorded a steady growth and development from 1945, but suffered a sharp decline between 1991 and 1996 due to the Croatian War of Independence
Croatian War of Independence
The Croatian War of Independence was fought from 1991 to 1995 between forces loyal to the government of Croatia—which had declared independence from the Socialist Federal Republic of Yugoslavia —and the Serb-controlled Yugoslav People's Army and local Serb forces, with the JNA ending its combat...

 and the Bosnian War
Bosnian War
The Bosnian War or the War in Bosnia and Herzegovina was an international armed conflict that took place in Bosnia and Herzegovina between April 1992 and December 1995. The war involved several sides...

. In the late 2000s, Luka Ploče d.d.
Luka Ploče
Luka Ploče is a Croatian port operating company which operates port facilities at the southern Croatian Port of Ploče. It is listed on the Zagreb Stock Exchange and is one of 25 companies included in the CROBEX share index....

, the primary concessionaire of the Port of Ploče, embarked on an ambitious investment plan, aiming for a substantial increase in the volume of port operations. Funding was secured in 2007, and Luka Ploče d.d. plans to invest
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

91 million in port infrastructure and around €180 million in port equipment by 2014.

History

In 1936, it was decided to develop the Port of Ploče, as the site at the mouth of the Neretva on the Adriatic coast represented the natural outlet for the economy of Bosnia and Herzegovina, which was then part of the Kingdom of Yugoslavia
Kingdom of Yugoslavia
The Kingdom of Yugoslavia was a state stretching from the Western Balkans to Central Europe which existed during the often-tumultuous interwar era of 1918–1941...

. Preparations included the construction of a railway between Metković
Metkovic
Metković is a city in the Dubrovnik-Neretva county of Croatia, located in the southeast of the country, on the banks of the river Neretva and on the border with Herzegovina.-Demographics:...

 and Ploče, as an extension of the railway from Sarajevo. The railway was completed in 1942, three years after construction of the port commenced in 1939. The works were delayed by the onset of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, but they were intensified in 1945 after modernization of the Sarajevo–Ploče narrow gauge railway.

The port officially started operating on July 15, 1945, handling imports of coal and cereal and exports of bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...

 and timber
Timber
Timber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...

. The railway was rebuilt to standard gauge
Standard gauge
The standard gauge is a widely-used track gauge . Approximately 60% of the world's existing railway lines are built to this gauge...

 in 1966, and electric traction
Railway electrification system
A railway electrification system supplies electrical energy to railway locomotives and multiple units as well as trams so that they can operate without having an on-board prime mover. There are several different electrification systems in use throughout the world...

 was installed in 1969 to increase the port's throughput, which reached one million tonnes within a few years. Development of the port was sustained until 1991, when the Croatian War of Independence and the Bosnian War brought about a five-year decline, affecting not only the port's accessibility but also its primary market. In 1996, Croatia and the Federation of Bosnia and Herzegovina
Federation of Bosnia and Herzegovina
The Federation of Bosnia and Herzegovina is one of the two political entities that compose the sovereign country of Bosnia and Herzegovina . The two entities are delineated by the Inter-Entity Boundary Line...

 signed the Ploče Agreement, regulating unhindered passage of goods between Bosnia and Herzegovina and the Port of Ploče and stipulating that such cargo should be duty-free. Enforcement of the agreement is related to the duration of the Neum Agreement
Neum Agreement
The Neum Agreement is a treaty between the Republic of Croatia and the Federation of Bosnia and Herzegovina granting free passage of transit traffic between the territory of Dubrovnik-Neretva County around the city of Dubrovnik and forming a pene-exclave of Croatia and the remaining Croatian...

.

In 2006, Luka Ploče d.d. started developing a new bulk cargo terminal, a new container terminal and a distribution center, implementing IT systems throughout port facilities and operations, and enhancing logistical support to increase the competitiveness of the Ploče transport route. Funding of €91 million was approved on November 20, 2006, consisting of a €58.8 million loan from the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

, a €11.2 million loan from the European Bank for Reconstruction and Development
European Bank for Reconstruction and Development
Founded in 1991, the European Bank for Reconstruction and Development uses the tools of investment to help build market economies and democracies in 30 countries from central Europe to central Asia. Its mission was to support the formerly communist countries in the process of establishing their...

 and a provision of €21 million by Croatia. By August 2010, €44.2M of the total had been spent, and the new container terminal was opened.

The Port of Ploče Authority was established by the Government of Croatia
Government of Croatia
The Government of the Republic of Croatia , commonly abbreviated to Croatian Government , is the main element of the executive branch of government in Croatia. It is led by the President of the Government , commonly abbreviated to premier...

 on February 13, 1997, to oversee construction, maintenance, administration, protection and promotion of the Port of Ploče. Since 1998, the general and bulk cargo
Bulk cargo
Bulk cargo is commodity cargo that is transported unpackaged in large quantities. This cargo is usually dropped or poured, with a spout or shovel bucket, as a liquid or as a mass of relatively small solids , into a bulk carrier ship's hold, railroad car, or tanker truck/trailer/semi-trailer body...

 operations of the port have been operated by Luka Ploče d.d. and development has resumed. In 2009, after negotiations with the Port of Ploče Authority, Luka Ploče was granted a 32-year extension of the concession contract
Concession (contract)
A concession is a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. For example, sports arenas or public parks may have concession stands. Many department stores contain numerous concessions operated by other...

 for the cargo handling operations of the port. The contract requires the port authority to improve port infrastructure and Luka Ploče to invest in new cargo handling equipment. The Croatian government considers the Port of Ploče to be one of six seaports of national interest.

Transport facilities

The Port of Ploče is located on the Adriatic Sea coast in the area of the Neretva river. Its facilities include terminals and other structures in Ploče and in Metković
Metkovic
Metković is a city in the Dubrovnik-Neretva county of Croatia, located in the southeast of the country, on the banks of the river Neretva and on the border with Herzegovina.-Demographics:...

, which lies on the Neretva approximately 20 kilometres (12.4 mi) inland to the east of Ploče. The Port of Ploče is at the southern terminus of Pan-European transport corridor
Pan-European corridors
The ten Pan-European transport corridors were defined at the second Pan-European transport Conference in Crete, March 1994, as routes in Central and Eastern Europe that required major investment over the next ten to fifteen years. Additions were made at the third conference in Helsinki in 1997...

 V, branch C, representing a maritime extension of the rail and road routes leading to and from the Ploče area. These routes include modern roads such as: the Croatian A1 motorway
A1 (Croatia)
The A1 motorway is the longest motorway in Croatia spanning . As it connects Zagreb, the nation's capital, to Split, the second largest city in the country and the largest city in Dalmatia, the motorway represents a major north–south transportation corridor in Croatia and a significant part of the...

, accessed via the D425 and D513, forming part of European route E65
European route E65
European route E 65 is a north-south Class-A European route that begins in Malmö, Sweden and ends in Chaniá, Greece. The road is about in length.-Itinerary:* Sweden** E 65: Malmö – Ystad* Baltic sea, ferry Ystad-Świnoujście* Poland...

 and connecting Zagreb
Zagreb
Zagreb is the capital and the largest city of the Republic of Croatia. It is in the northwest of the country, along the Sava river, at the southern slopes of the Medvednica mountain. Zagreb lies at an elevation of approximately above sea level. According to the last official census, Zagreb's city...

, Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...

 and Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...

; and the Bosnia and Herzegovina A1
A1 (Bosnia and Herzegovina)
thumb|A1's projected routeThe A1 motorway is a motorway in Bosnia and Herzegovina that is part of the Corridor Vc and, together with two Croatian motorways and the Hungarian M6, will provide a modern and fast road connection from Budapest to Ploče, an important seaport on the Adriatic Sea.The...

 and the planned Croatian A10
A10 (Croatia)
The A10 motorway is a planned motorway, expected to be built in southern Croatia between the border of Bosnia and Herzegovina, extending from the Bosnia and Herzegovina A1 motorway towards the Croatian A1 motorway Metković interchange. The motorway is planned to include the Metković border...

 motorways, which are parts of European route E73. All the port's quays are linked by tracks connected to a single-track railway to Mostar, Sarajevo, Osijek
Osijek
Osijek is the fourth largest city in Croatia with a population of 83,496 in 2011. It is the largest city and the economic and cultural centre of the eastern Croatian region of Slavonia, as well as the administrative centre of Osijek-Baranja county...

 and further north towards Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...

.

The port comprises several terminals:
  • General Cargo Terminal – handles food, cattle food, cotton, tobacco and industrial products; it has processing, packaging and storage facilities, six berths and a 9.2 metres (30.2 ft) draught.
  • Bulk Cargo Terminal – handles coal, iron ore, pig iron, scrap iron, phosphates and cinder; it has storage facilities, three berths and a 13 metres (42.7 ft) draught, allowing transshipment of 15000 tonnes (33,069,339.3 lb) of cargo per day.
  • Liquid Cargo Terminal – handles fuel and other liquid cargo; it has 92000 cubic metres (3,248,949.3 cu ft) of storage capacity overall, a single berth and a 12 metres (39.4 ft) draught. Its cargo storage and handling facilities are operated by Luka Ploče Trgovina d.o.o. and Naftni Terminali Federacije d.o.o. (NTF). NTF is owned by the Federation of Bosnia and Herzegovina.
  • Grain Cargo Terminal – handles transshipment, packaging and storage of cereals and oilseeds, with a capacity of 400 tonnes per hour; it has a single berth, 45000 tonnes (99,208,018 lb) of storage capacity and a 9.8 metres (32.2 ft) draught.
  • Wood Terminal – handles, stores and processes timber; it has a single berth and a 9.2 metres (30.2 ft) draught.
  • Alumina and Petroleum Coke Terminal – handles alumina and petroleum coke
    Petroleum coke
    Petroleum coke is a carbonaceous solid derived from oil refinery coker units or other cracking processes. Other coke has traditionally been derived from coal....

    ; it has a 9.2 metres (30.2 ft) draught; for alumina it has a storage capacity of 20,000 tonnes and a transshipment capacity of 600 tonnes per hour; for petroleum coke it has 10000 tonnes (22,046,226.2 lb) of storage capacity and 260 tonnes per day handling capacity.
  • Container Terminal – handles intermodal container
    Intermodal container
    An intermodal container is a standardized reusable steel box used for the safe, efficient and secure storage and movement of materials and products within a global containerized intermodal freight transport system...

    s; it has a roll-on/roll-off ramp and accommodates Panamax
    Panamax
    Panamax and New Panamax are popular terms for the size limits for ships traveling through the Panama Canal. Formally, the limits and requirements are published by the Panama Canal Authority titled "Vessel Requirements"...

     ships. Its annual capacity is 60,000 TEUs
    Twenty-foot equivalent unit
    The twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals...

  • Bulk Cement Terminal – has 200 tonnes (440,924.5 lb) per hour handling capacity and 4000 tonnes (8,818,490.5 lb) storage capacity; it is part of Business Unit Metković, located in Metković on the Neretva river, which is 5 metres (16.4 ft) deep at the site.
  • General Cargo Terminal (Metković) – adjacent to the Bulk Cement Terminal, forming a part of Business Unit Metković.
  • Slag Terminal – 10000 tonnes (22,046,226.2 lb) storage capacity adjacent to the Bulk Cement Terminal, forming a part of Business Unit Metković.
  • Passenger Terminal – two moorings: the primary mooring is used for international transport and accommodates vessels up to 120 m (393.7 ft) LOA (length overall), with an 8 metres (26.2 ft) draught; the secondary mooring is used for local and international transport and accommodates vessels up to 65 m (213.3 ft) LOA, with a 5 metres (16.4 ft) draught.

Business operations

The Port of Ploče is the second largest cargo seaport in Croatia, mostly serving Bosnia and Herzegovina, along with some local and regional users. The port is administered by the Port of Ploče Authority, with Luka Ploče d.d. as the primary concessionaire. Subcontractors that operate the liquid cargo terminal facilities are Naftni Terminali Federacije d.o.o. and Luka Ploče Trgovina d.o.o., while passenger and vehicle transit is handled by Jadrolinija
Jadrolinija
Jadrolinija is a Croatian sea shipping company. It is a state-owned company and its main mission is connecting Croatian islands to the mainland by operating regular passenger and cargo transport services...

. Jadrolinija ferries sail between Ploče and Trpanj
Trpanj
Trpanj , is a town and municipality of Dubrovnik-Neretva County in south-eastern Croatia. According to the 2001 census, Trpanj has a population of 871. Croats make up 93.11% of the population.-Etymology:...

 on the Pelješac
Pelješac
Pelješac is a peninsula in southern Dalmatia in Croatia. The peninsula is part of the Dubrovnik-Neretva County and is the second largest peninsula in Croatia...

 peninsula and the D415 state road. In 2009, the ferry line carried annual average daily traffic
Annual average daily traffic
Average Annual daily traffic, abbreviated AADT, is a measure used primarily in transportation planning and transportation engineering. It is the total volume of vehicle traffic of a highway or road for a year divided by 365 days. AADT is a useful and simple measurement of how busy the road is...

 of 143 vehicles. During summer the volume increased to 383 vehicles on average.

In 2008, the Port of Ploče recorded 2,555 ship arrivals, 106 in Metković and the rest in Ploče. In the same period, the Passenger Terminal recorded 145,945 passenger arrivals and departures. , the Director of the Port Authority is Tomislav Batur.

Luka Ploče

In 2010, Luka Ploče d.d. achieved a cargo transport volume of 4.5 million tonnes (2010), consisting mostly of general cargo and bulk cargo
Bulk cargo
Bulk cargo is commodity cargo that is transported unpackaged in large quantities. This cargo is usually dropped or poured, with a spout or shovel bucket, as a liquid or as a mass of relatively small solids , into a bulk carrier ship's hold, railroad car, or tanker truck/trailer/semi-trailer body...

, including 20,420 TEUs. It reported a net profit of 15.6 million kuna
Croatian kuna
The kuna is the currency of Croatia since 1994 . It is subdivided into 100 lipa. The kuna is issued by the Croatian National Bank and the coins are minted by the Croatian Monetary Institute....

 (€2.1 million), a fourfold increase from the 3.8M kuna (€0.5M) achieved in the previous year. Total income in 2010 reached 157.5 million kuna (€21.0 million), up from 151.2 million kuna (€20.1 million) in 2009. The company had 816 employees in 2010. It is listed on the Zagreb Stock Exchange
Zagreb Stock Exchange
The Zagreb Stock Exchange or ZSE is a stock exchange located in Zagreb, Croatia. It is Croatia's only stock exchange. The exchange trades shares of Croatian companies, as well as bonds and commercial bills....

 with a share capital of 169.19 million kuna (€22.56 million). , Ivan Pavlović is president of the Management Board, and the company is owned by the Croatian government (11.11 percent), the Croatian Pension Insurance Fund (8.86 percent) and other stockholders, none of which owns more than 8.5 percent of the stock.

In 2009, after negotiations with the Port of Ploče Authority, Luka Ploče was granted a 32-year extension of its concession contract for the cargo handling operations of the port. The contract requires the port authority to improve port infrastructure and Luka Ploče to invest in new cargo handling equipment. Those investments were compensated by extension of the concession period for individual terminals to 45 years. A further increase in cargo volume was reported in the first half of 2011, compared with the same period of 2010.

Future expansion

, only part of the development plan defined by the Port of Ploče Authority in 2006 is completed—the new container terminal opened in 2010, but construction of the new bulk cargo terminal, originally scheduled for completion by 2010, is now planned for 2011–2014. The 5 million tonne-per-year bulk cargo terminal will expand the port area by 20 hectares (49.4 acre). The new bulk cargo terminal is planned to accommodate ships with a draught of up to 18.5 metres (60.7 ft), and 200,000 tonnes deadweight
Deadweight tonnage
Deadweight tonnage is a measure of how much weight a ship is carrying or can safely carry. It is the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew...

 (DWT), i.e. Capesize
Capesize
Capesize ships are cargo ships originally too large to transit the Suez Canal . To travel between oceans, such vessels used to have to pass either the Cape of Good Hope or Cape Horn. In effect Capesize reads as "unlimited"...

 vessels. It aims to attract large quantities of transport for the ArcelorMittal, GIKIL, Birač Zvornik
Zvornik
Zvornik is a city on the Drina river in northeastern Bosnia and Herzegovina, located south of the town of Bijeljina in Bosnia and Herzegovina. The town Mali Zvornik lies directly across the river in Serbia, and not far north is Loznica.-History:Zvornik is first mentioned in 1410, although it was...

 and Aluminij
Aluminij
Aluminij d.d. Mostar is a company based in Mostar, Bosnia and Herzegovina and owned by Federation of Bosnia and Herzegovina. It is a large regional producer of aluminium, with sales of 135 million tons of aluminium in 2006....

 industrial plants in Bosnia and Herzegovina, which are the main users of the port. The ArcelorMittal plant in Zenica
Zenica
Zenica is an industrial city in Bosnia and Herzegovina. It is the capital of the Zenica-Doboj Canton of the Federation of Bosnia and Herzegovina entity...

 alone is expected to ship 1.5 million tonnes of ore and coal, as it would save US$15–20 million in shipping costs.

Further investments beyond construction of the new terminal were planned since 2007 for bulk cargo terminal equipment worth €80M, cargo terminal equipment worth €11 million, replacement of equipment in pre-2007 port facilities valued at €26 million and reconstruction of the liquid cargo terminal worth €70 million. These investments were originally scheduled for 2007–2014, but the pace of development is slower than expected, and delays of a year to two had been observed by 2010. The required superstructure is planned to be funded through build-operate-transfer
Build-Operate-Transfer
Build-own-operate-transfer or build-operate-transfer is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract...

 contracts and public–private partnerships. The investments made since 2007 and those planned as of 2011 are aimed at increasing the port's throughput from 8 to 10 million tonnes of cargo per year.

External links

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