The Klaipėda Port Authority is taking an important step in the development of the southern part of the port by launching a tender to select future tenants for the new port area. The aim is to attract strategic investors who will join forces with the Port Authority to develop and deliver this major investment project, with a total value exceeding EUR 1 billion. The new 100-hectare area is intended for cargo handling and maritime industry activities, creating opportunities to expand port infrastructure, attract new cargo flows and strengthen the Port of Klaipėda’s long-term growth and competitiveness.
“This is the largest expansion of the Port of Klaipėda in the history of independent Lithuania. It is an investment that will strengthen the port’s competitiveness, generate billions of euros in value for our economy and improve security across the region. The southern port development project is moving closer to the start of construction. The tender we are launching today is an important step towards attracting companies that will operate in the new area,” says Minister of Transport and Communications Juras Taminskas.
With total planned investments exceeding EUR 1 billion, the southern port development will be one of the largest investment projects not only in the port but also in Lithuania. Due to its scale, the Port Authority is applying a different approach, based on international experience in selecting operators for major infrastructure projects.
“A project of this scale calls for a different approach. We are not simply looking for tenants, but for partners who will join us from the very beginning, invest in the new infrastructure and prepare for the time when they can build production facilities, docks and warehouses or install cranes in the new area. We are working actively to attract major international cargo handling and maritime industry companies that can ensure stable cargo flows. The Port of Klaipėda is ready to grow, create new jobs and contribute even more to Lithuania’s development,” says Algis Latakas, Director General of the Klaipėda State Seaport Authority.
Experts from Ernst & Young Baltic and the law firm Ellex Valiūnas supported the Port Authority in preparing the tender documents, carrying out economic assessments and defining the legal, commercial and financial conditions.
100 hectares for cargo handling and maritime industries
As part of the project, the Klaipėda Port Authority will create 100 hectares of new land and build approximately 1.3 km of new quays. The project also includes deepening part of the shipping channel in the southern port area, creating a 600-metre-wide turning basin for vessels, and providing road and rail connections.
These works are currently estimated to cost around EUR 600 million. Future tenants will contribute at least EUR 300 million towards this amount if the entire territory is leased, with proportionate minimum contributions for bids covering only part of the territory.
The tender aims to attract companies from Lithuania and abroad to lease and operate in the new southern port area. Lease agreements will be signed for a period of 50 years.
Participants may apply to lease the entire area or a smaller part that meets their business needs. Each participant will offer an initial financial contribution based on the length of the quay and the size of the land they wish to lease.
Future tenants will be required to pay at least half of their initial contribution before the new land is handed over to them. The remaining amount must be paid within 15 years after the tenant takes possession of the land.
Tenants will also be required to invest in their own facilities and equipment, such as buildings, cranes and other operational infrastructure. Companies involved in cargo handling will be required to commit to minimum annual cargo volumes that may not decrease over the lease term.
Applications and initial proposals will be submitted through the electronic platform: Užsakovas – KLAIPĖDA STATE SEAPORT SOUTHERN PART DEVELOPMENT PROJECT
The tender will take place in several stages. In the first stage, participants will submit applications and initial proposals, which will be assessed against qualification requirements.
These requirements will cover technical capacity, professional experience and financial strength to ensure that the selected investors are capable of delivering the project.
Participants who meet the qualification requirements will then be invited to enter into a dialogue to agree on the technical, financial and legal terms of the project. Following these discussions, they will be asked to submit their final proposals.
If any part of the new area remains available after the first round, the Port Authority may organise additional tender rounds.
Before a lease agreement is signed, each selected participant will be required to pass a national security assessment. This will help ensure that the strategically important project is developed by reliable partners and serves Lithuania’s long-term national interests.
New opportunities for the port and Lithuania
The southern port development project will create new opportunities for the Port of Klaipėda and Lithuania.
The port currently has limited space for expansion, which restricts its ability to grow. The lack of space for expansion will make it harder for the Port of Klaipėda to remain a leading port and meet the growing needs of the cargo market.
The indicative layout envisages approximately 50 hectares for a container terminal with a handling capacity of approximately 1.5 million TEU (twenty-foot equivalent units) at full build-out. The remaining approximately 50 hectares are envisaged for a wider range of port activities. The final allocation will depend on the outcome of the tender.
The southern port development project is included in the Lithuanian Government’s portfolio of strategic projects, coordinated by Prime Minister Mindaugas Sinkevičius.
Its national importance is also reflected in a special legal framework. This summer, the Lithuanian Parliament passed the Law on the Development of the Southern Part of the Klaipėda State Seaport, prepared by the Ministry of Transport and Communications.
In September, during a Government meeting held at the Port Authority, the procedure for selecting tenants for the new southern port area was approved.
These decisions made it possible to launch the tender and move the project into a new stage.
The Klaipėda Port Authority is now preparing to begin major construction works. Tilsta, the company responsible for building the southern port gates, has already set up its construction site. The contract between the Port Authority and Tilsta is worth EUR 24.5 million excluding VAT. The new structures will also play an important environmental role by preventing saltwater from entering the Curonian Lagoon.
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