Port Infrastructure

Port Infrastructure

Photo by Unsplash / Nikola Đuza

Port Infrastructure
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Infrastructure
Business Model Description

Finance, design, construct, and operate river port infrastructure through a Public-Private Partnership (PPP), targeting both goods and people. The government owns the port land and assets but grants a concession to a private sector entity to finance, construct, and operate the port facility for a specified period of time. The private sector entity finances the project, including construction costs, and operate the port facility for the concession period. In return, the private sector entity receives a share of the revenue generated by the port, such as through port fees or lease payments.

Expected Impact

Improve transportation of goods and people with lower environmental impact, reduce logistical inefficiencies, and boost economic productivity.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
< 5% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Good health and well-being (SDG 3) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Clean water and sanitation (SDG 6) Life Below Water (SDG 14) Climate Action (SDG 13)
Sector Sources
  • 1) Ministry of Environmental Protection, Waste management program in the Republic of Serbia for the period 2022-2031, 2022. https://ekologija.gov.rs/sites/default/files/2022-02/program_upravljanja_otpadom_u_rs_za_period_2022-2031._god_0_2.pdf 2) Statistical office of the Republic of Serbia, Progress Report on the Implementation of Sustainable Development Goals by 2030 in the Republic of Serbia, 2022. https://www.stat.gov.rs/media/353537/progress-report-on-the-implementation-of-sustainable-development-goals-by-2030-in-the-republic-of-serbia.pdf 3) Ministry of Construction, Transport and Infrastructure, Strategy for Sustainable Urban Development of the Republic of Serbia until 2030, 2019. https://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2019/47/1/reg 4) Ministry of Construction, Transport and Infrastructure, Draft of the Spatial Plan of the Republic of Serbia from 2021 to 2035, 2021. https://www.mgsi.gov.rs/sites/default/files/PPRS%20Nacrt.pdf 5) Ministry of Labour, Employment, Veteran and Social Affairs, Strategy of Prevention and Protection Against Discrimination for the period from 2022 to 2030, 2022. https://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2022/12/2 6) Sustainable Development Report 2022, Sustainable development report 2022-Serbia, 2023. https://dashboards.sdgindex.org/profiles 7) B92.net, Serbia invests 4 billion euros: The complete reconstruction of the railway is planned, 2019. https://www.b92.net/biz/vesti/srbija/ulaze-se-cetiri-milijarde-evra-u-planu-celokupna-obnova-zeleznice-1563466 8) Cordmagazine.com, Renovation of rural infrastructure for 70 million euros, 2022. https://cordmagazine.com/sr/srbija/obnova-seoske-infrastrukture-za-70-miliona-evra/ 9) Port Governance Agency, Medium-term concession granting plan 2016-2019 and Annual concession granting plan for 2016, n.d. 10) Ekapija.com, Hesteel makes first profit in Smederevo in December 2016 – production of 2 million tons of steel and earnings of EUR 20 million planned in 2017, 2016. https://www.ekapija.com/en/news/1623452/hesteel-makes-first-profit-in-smederevo-in-december-2016-production-of-2 11) Port Governance Agency, Initialing of the agreement port activities on the performance of Port Activities with Hesteel Serbia Iron & Steel Ltd. Belgrade, n.d. https://www.aul.gov.rs/en/initialing-of-the-agreement-port-activities-on-the-performance-of-port-activities-with-hesteel-serbia-iron-steel-ltd-beograd 12) The Ministry of Economy of the Republic of Serbia, Stevanovic signed a contract on privatization of the Port of Novi Sad, 2019. https://www.privreda.gov.rs/aktuelno/vesti-i-saopstenja/stevanovic-potpisao-ugovor-o-privatizaciji-luke-novi-sad 13) Privreda.gov.rs, 2022. https://privreda.gov.rs/sites/default/files/documents/2023-02/Pravilnik%20o%20unutra%C5%A1njem%20ure%C4%91enju%20i%20sistematizaciji%20radnih%20mesta%20od%201.%20dec.%202022.g..pdf 14) RAS, Regulation on determining the criteria for the allocation of incentives for attracting direct investments, 2019. https://ras.gov.rs/uploads/2019/01/uredba-o-odredjivanju-kriterijuma-za-dodelu-podsticaja-radi-privlacenja-direktnih-ulaganja-u-oblasti-proizvodnje-prehrambenih-proizvoda-1.pdf 15) The Law on Water, 95/2018. https://www.aul.gov.rs/folder/zakon-o-vodama.pdf 16) The Law on Fees for the Use of Public Goods, 49/2019. https://www.aul.gov.rs/folder/zakon-o-naknadama-za-koriscenje-javnih-dobara.pdf 17) Keynote Address of Prime Minister Brnabic, 2020. https://media.srbija.gov.rs/medsrp/dokumenti/brnabic_ekspoze281020_cyr.pdf 18) Peterhof Consulting stakeholder consultations at Peterhof office on 9th of February, 2023. 19) Port Governance Agency, Ports and marinas, 2023. https://www.aul.gov.rs/folder/LM07B.pdf 20) IIA navigator, Serbia | International Investment Agreements Navigator | UNCTAD Investment Policy Hub, n.d. https://investmentpolicy.unctad.org/international-investment-agreements/countries/187/serbia?type=bits
IOA Sources
  • 21) "Official Gazette of RS", Strategy for the development of railway, road, water, air and intermodal transport in the Republic of Serbia from 2008 to 2015, 2007. https://www.putevi-srbije.rs/images/pdf/strategija/Strategijatransport_cir.pdf 22) "Official Gazette of the Republic of Serbia" Strategy development of water transport of the Republic of Serbia from 2015 to 2025, 2014. https://www.mgsi.gov.rs/sites/default/files/STRATEGIJA%20razvoja%20vodnog%20saobracaja%20Republike%20Srbije%20od%20201.pdf 23) "Official Gazette of the Republic of Serbia", Tourism Development Strategy of the Republic of Serbia for the period from 2016 to 2025, 98/2016-6. https://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2016/98/1 24) Ministry of Environmental Protection of the Republic of Serbia, National program for environmental protection, 2021. https://www.ekologija.gov.rs/sites/default/files/2021-01/nacionalni-program-zastite-zivotne-sredine-r.srbija.pdf 25) Planning and Construction Law. Law on Planning and Construction, 52/2021. https://www.paragraf.rs/propisi/zakon_o_planiranju_i_izgradnji.html 26) Environmental Protection Act, The Environmental Protection Act, 76 and 95/2018. https://www.paragraf.rs/propisi/zakon_o_zastiti_zivotne_sredine.html 27) Law on Public Procurement. Law on Public Procurement, 91/2019. https://www.paragraf.rs/propisi/zakon-o-javnim-nabavkama.html 28) K.S. World Economic Forum, Insight report the global competitiveness report 2017–2018, 2017. https://www3.weforum.org/docs/GCR2017-2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf?bcsi_scan_8dde7f71b980cf49=0&amp;bcsi_scan_filename=TheGlobalCompetitivenessReport2017%E2%80%932018.pdf 29) LAW ON NAVIGATION AND PORTS ON INLAND WATERS, 18/2015. http://www.uprava-brodova.gov.rs/sr_cir/pdf/zakoni/Preciscen_tekst_Zakona_o_plovidbi_i_lukama_na_unutrasnjim_vodama_2015.pdf 30) Development agency of Serbia, Ras, n.d. https://ras.gov.rs/en/invest-in-serbia/why-serbia/join-the-pool-of-the-successful 31) The river fleet is about 40 years old. Daily Newspaper Today, 2014. https://www.danas.rs/vesti/ekonomija/recna-flota-stara-oko-40-godina/ 32) BBC News in English, BBC, Operation Danube Elf: How German ships were sunk and what their extraction will reveal, 2020. https://www.bbc.com/serbian/lat/srbija-52994275 33) River transport of goods: Water and ship. Beocontrol Logistic, 2020. https://transportrobe.com/recni-transport/ 34) International Trade Administration | Trade.gov, Serbia - infrastructure, 2022. https://www.trade.gov/country-commercial-guides/serbia-infrastructure 35) UNECE, Freight volume (Inland Waterway Transport) - sustainable development goals - united nations economic commission for Europe, n.d. https://w3.unece.org/SDG/en/Indicator?id=149 36) Our World in Data, Death rate due to road traffic injuries, 2019. https://ourworldindata.org/grapher/death-rate-road-traffic-injuries?country=~OWID_WRL 37) Port of Bačka Palanka, About, 2013. https://www.lukabp.rs/o-nama 38) Blic.rs, Č.Z, The Port of Novi now gets a New Vertical Quay, Container Terminal and silo, 2022. https://www.blic.rs/vesti/novi-sad/luka-novi-sad-dobija-novi-vertikalni-kej-kontejnerski-terminal-i-silos/59h2k6k 39) Telegraph Business, B, Works in the Port of Prahovo from September, CEO Kopleks Finished until 2024, 2021. https://biznis.telegraf.rs/info-biz/3362006-radovi-u-luci-prahovo-od-septembra-ceo-kopleks-gotov-do-2024-godine 40) Jaksic , R. Minister Momirović: Port of Antwerp interested in the construction of the Port of Belgrade, 2022. https://www.kurir.rs/vesti/biznis/3957071/ministar-momirovic-luka-antverpen-zainteresovana-za-izgradnju-luke-beograd-foto 41) Anticipated investments of half a billion euros in the development of ports in Serbia, 2019. https://www.b92.net/biz/vesti/srbija/predvidena-ulaganja-od-pola-milijarde-evra-u-razvoj-luka-u-srbiji-1634484 42) Port Governance Agency, Annual Newsletter, 2022. https://www.aul.gov.rs/folder/sedmi-godisnji-bilten.pdf 43) Republican Bureau of Statistics, TRANSPORT AND TELECOMMUNICATIONS IN THE REPUBLIC OF SERBIA, 2021, 2023. https://publikacije.stat.gov.rs/G2023/Pdf/G20235692.pdf 44) Republican Bureau of Statistics, SDGs https://sdg.indikatori.rs/sr-latn/area/decent-work-and-economic-growth/?subarea=SDGUN080101&indicator=08010101IND01 45) UNDP stakeholder consultations 30th of March, 2023.