Agreement provides blueprint for the riverine port’s integrated logistics connections with Europe
P&O Ports has announced a Public-Private Partnership (PPP) agreement to operate the port of Novi Sad, Serbia as part of a long-term investment plan to upgrade equipment and services and to support the Serbian government’s strategy to create an intermodal terminal and logistics centre with rail, road and inland waterways links to the rest of Europe.
The agreement shall grant a right to P&O Ports to operate Novi Sad for an initial 25 years with an option to renew by both parties for another 25 years on expiry.
The agreement for obtaining the property rights on the capital and assets of the port operator of the Port of Novi Sad was recently signed by Dragan Stevanovic, State Secretary of the Ministry of Economy and P&O Ports Chief Executive Officer, Rado Antolovic, following a Memorandum of Understanding signed last year by Deputy Prime Minister Zorana Mihajlovic and Sultan Ahmed Bin Sulayem, Chairman of P&O Ports.
“The Port of Novi Sad provides connections with DP World Constanza, Romania, with onward handling of bulk cargos in Jebel Ali Port, Dubai,” remarked Sultan Ahmed Bin Sulayem, Chairman, P&O Ports.
Cereals are the largest export commodity of Serbia and the World Bank has projected increasing GDP growth of 4% 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. Trucking is focused on the local and regional market and export via Adriatic ports.
