Dubai-owned ports and logistics company DP World has cut shipping times between Romania and Turkey by half, a senior executive said, as it expands its Black Sea operations at the European Union's eastern border.
DP World more than doubled its container shipping capacity at Romania's largest Black Sea port of Constanta last year, with the addition of a roll-on, roll-off (Ro-Ro) terminal, and a logistics hub in western Romania.
It has this year added an integrated European logistics service out of Romania offering road, sea, air and rail services, initially for clients in neighbouring Bulgaria, Moldova, Serbia and Turkey.
"We have made huge strides in optimising maritime trade between Turkey and Constanta, improving the transit time by sea by 50%," DP World Eastern Europe Vice President Kris Adams told Reuters.
"Istanbul-to-Bucharest shipments have been cut to under 30 hours, creating a viable alternative to road transport."
A new scanner at DP World's Constanta Ro-Ro terminal has reduced truck inspection times from 5-7 hours to 2 minutes, he added.
The upgrades cost a total of 130 million euros, but Adams said more would follow as there is growth potential in automotive, e-commerce and renewable energy cargo.
"We're looking at ultimately investing over 200 million euros, there will be more in staff, in a digital platform and ... we have an ambition to operate contract logistics, so that means that we will at some stage be operating warehouses but it is too early to comment."
Investment in infrastructure and exports of Ukrainian grain through Constanta in the wake of Russia's 2022 invasion helped boost operations at the port, which is a gateway to Central Asia and provides access to the Danube river and Western Europe.
Its importance has also grown as companies relocate operations to Eastern Europe's low-cost manufacturing hubs to shorten supply chains.
Adams said the company's investment plans would continue regardless of pending tax hikes by Romania's broad coalition government, although he noted the rises could dampen trade.
(Reuters)
