Constanta Port on its way to becoming the most important CEE hub

Romania is becoming a logistics hub for the entire Central and Eastern European region, as well as for Southern Europe countries. Development around Bucharest and the larger cities in the centre and west have matured, allowing developers to take a different approach. At the same time, other regions in the country, such as Constanta, have also been developing at faster rates and catching up to the areas that have historically spearheaded the rise in average GDP per capita.

By Aurel Dragan

A significant investment was recently made in the port of Constanta following the expansion of the port terminal operated by DP World, where the company opened three new major sites, providing a significant boost to the country’s growing status as a key hub for European trade and enabling economic growth throughout the region.

Constanta, the largest container port on the Black Sea, is now home to two new facilities following a EUR 65 million investment: a 5-hectare project cargo terminal for heavy, large, and complex cargo, and a new roll-on, roll-off (RO-RO) terminal that will handle up to 80,000 vehicles per year at its peak. A further EUR 50 million will be invested in a new multi-transport platform in Constanta, which will open in 2025. DP World’s third new facility has just opened in Aiud, in the industrial heartland of Romania, now home to a new 8-hectare intermodal logistics hub connecting rail and road, following a EUR 21 million investment.

The new facilities will improve the connectivity between DP World’s existing sea, rail, barge, and truck services across Romania and enhance the movement of goods between mainland Europe and the Black, North, and Adriatic Seas. DP World has invested over EUR 250 million in Romania since 2004, with the sum including grants from the European Union. Cosmin Carstea, the CEO of DP World Romania, told Business Review that the platform in the terminal extension, which covers 16 hectares, was completed with an investment of EUR 45 million from European funds. Additionally, DP World contributed USD 30 million. “We started developing this area in 2006-2007, but we stopped in 2008 when the whole market was in crisis. We had reached 50% development, with an investment of over USD 20 million. We also invested in equipment and expansions—we spent USD 4 million on components, USD 4 million on the expansion of the mechanical maintenance shop, and USD 12 million on scanners,” Carstea said, adding that the company covers all its expenses during development and receives money back from European authorities a few months after completion.

“The second expansion area will cover 12 hectares, for which we have EUR 37 million in European funds, on top of which we are adding about USD 30 million for the platform and utilities. The 12-hectare area will also feature the railway terminal, which is still to be developed,” Carstea added.

20-year anniversary

The latest infrastructure projects were announced as DP World marked the 20th anniversary of its operations in Romania; it was the first European country to which the company expanded. The local business has since grown considerably, contributing to the impressive growth of the port. During this 20-year period, Romania has also developed rapidly and is now Eastern Europe’s second-largest economy after Poland. DP World expects its new investments to encourage and enable major businesses to relocate or expand their manufacturing facilities in the region. The so-called “nearshoring” and “reshoring” actions have become increasingly prevalent in Europe in recent years, spurred in part by the rise in geopolitical tensions.

An example of nearshoring and reshoring can be seen in automotive manufacturing, a sector that has expanded rapidly in the region in recent years and is expected to grow even further. Automotive already makes up 13% of Romania’s GDP, with Mercedes-Benz, Renault-owned Dacia, and Ford all manufacturing in the country. Automotive firms are also increasingly investing in neighbouring Hungary and Poland and nearby Turkey, making robust supply chains and logistics infrastructure such as the RO-RO terminal essential not just for Romania, but for the entire surrounding region.

Rashid Abdulla, CEO and Managing Director at DP World Europe, who started his career as Manager for Constanta in 2004, said, “Romania is a dynamic economy and well-positioned to benefit from the rise in nearshoring and manufacturing. DP World looks forward to building on its long-standing relationship with Romania and to deploying its latest investments to support Romania as it plays an increasingly important role in trade and economic growth in the region.”

“DP World’s latest investments in Romania will increase cargo flows through the country by around two million tonnes per annum. We believe that with this investment, DP World in Constanta will significantly strengthen its position as one of the most important container and RO-RO hubs in Central and Eastern Europe, securing most of the EU’s trade with Turkey and Central Asia. To aid this, we also plan to open a centre of excellence for services in the Balkans, to facilitate trade for the countries around Romania,” added Cosmin Carstea. He also explained that after the implementation of the ferry line between Romania and Turkey, transporting cars between the two countries will take about 2 days, compared to the 5 days needed by road.

The company, a multinational from United Arab Emirates with headquarters in Dubai, is also prepared to build logistic warehouses on the terminal, which can store perishable goods in proper conditions. Cosmin Carstea noted that they don’t yet have any signed contracts for this service, but that clients have shown interest in this type of warehouse: “It is the same approach as when we first started: build it and the clients will come.” The biggest advantage of such warehouses is that importers can keep goods inside the port without paying taxes until they find buyers. The Constanta port is a tax-free zone, designed to move goods as rapidly as possible.

Investments in port development

At the opening event, Transport minister Sorin Grindeanu stated: “For the first time in modern history, the Port of Constanta is located between two major trade flows: the traditional maritime corridor from Asia and the middle corridor starting from China. We are interested in continuing our partnership, jointly developing piers 3 and 4, digitalizing operations, and upgrading the networks in and around the Port. The development of the Constanta South Port is a strategic objective of national interest. After the completion of the works related to piers 3 and 4, the Port will be able to operate large-capacity ships including the 17 newly-created deep berths. Last year, the Port reached its historical maximum level, with 92 million tonnes transited, and became the EU’s most important distribution hub on the Black Sea. It is the most efficient commercial shipping route to the Caspian Sea and the Far East compared to the traditionally used ocean route,” Grindeanu noted.

The development of the 17 deep water berths (16 metres) in the Constanta South Port would cost over EUR 1 billion, according to the feasibility study from 2019. On March 7, 2024, the government approved a Memorandum for upgrade works to Constanta South to build specialised terminals that would be able to operate large capacity ships.