Reconstruction of KN Klaipeda oil terminal berths to begin

2019-08-08

Together with the Klaipeda State Seaport Authority (KSSA), oil and liquefied natural gas (LNG) terminal operator KN has signed a tripartite agreement on reconstruction of KN berth No 1 with the winners of the public tender. The winners of the public tender, which was valued at EUR 22.5 million (excl. VAT), were joint venture partners UAB Tilsta and UAB Fegda. It is planned that the partners will carry out construction and dredging work over the course of almost two years.

On the basis of the tripartite construction agreement signed this week, it is planned to adapt the currently unused 235-metre section of Berth No 1 for stevedoring and to dredge the adjacent ship channel to a depth of 17 metres. Once the three planned stages of reconstruction are completed, KN will be able to receive and load three tankers at a time at the Klaipeda oil terminal – currently, it can only receive two tankers.

“The market has been dictating the need for these changes for some time now – the amount of cargo is growing, new types of cargo are emerging, and customer expectations are changing. The new KN oil product storage tank park that is currently operating in pilot mode demonstrates this need – we are already loading a greater variety of products and testing a wider range of loading schemes. This dictates the need to develop and adapt the existing infrastructure, which will give us a competitive edge over other terminals in the region, and also allow us to retain existing customers and attract new ones. The berth reconstruction project will bring added value not only to KN, but also to the entire logistics chain consisting of the Port of Klaipeda, the railway, shipping companies, and Lithuanian and international business partners,” said Darius Šilenskis, KN Oil Business Director and acting CEO.

Under the tripartite agreement signed, KN undertakes to invest in installation of the superstructure for the works planned to be carried out, and the Port Authority undertakes to invest in the quay infrastructure.

“These are extremely significant jobs that will increase the competitiveness of the Port of Klaipeda even more. Once the berths are reconstructed and a maximum depth of 17 metres is ensured next to them, KN will be able to receive more and larger vessels. Reconstruction of the berths is planned to be carried out in several stages, doing the work in such a way that throughput is not disturbed. In the first phase, the Port Authority will invest EUR 22.52 million. In parallel with this project, the Port Authority is also implementing other public infrastructure improvement projects, such as pier reconstruction and dredging of the canal. All this will create even better conditions for KN to accept the largest tankers that can enter the Baltic Sea,” said Vidmantas Paukšte, Klaipeda State Seaport Authority Infrastructure Director and acting Director General.

After completion of the first stage, two more berth reconstruction stages are planned, each with an estimated duration of about two years. During Stages II and III, there are plans to reconstruct the berth infrastructure currently being used by installing Bolverk-type (anchored sheet pile) berth walls. Reconstruction of the breakwaters (port gates) and dredging of the ship canal to a depth of 17 metres are planned in parallel. Once the project is complete, KN will be able to receive vessels with a draught of up to 17 metres and increase throughput.

The new infrastructure project will be subject to the highest safety and environmental standards and will incorporate progressive technologies that will make the process even more efficient and expeditious without interfering with the stevedoring process during the reconstruction.

“Reconstruction of the KN-managed berths is being planned in close coordination with the KSSA and other parties – we are striving to ensure that the work being done has no impact on the services we provide to our customers and that we are able to receive tankers at two berths throughout the duration of the project,” emphasises Mr Šilenskis.

The cost of the Stage I works assigned to KN comes to just over EUR 1.7 million. Stage I reconstruction work is scheduled to begin within a month.

KN, press release