Reducing profits and losses, fluctuating income and reliance on compensating the difficulties sometime in the future – that show reports of major companies under the umbrella of the Transport Ministry.
For the first quarter the Burgas port registered revenue of just over 5 million lev, or 18.5 percent lower than in the same period in 2011. Behind these numbers lies very interesting information. According to the explanation of the management team of the state-owned company, the main reason for the deterioration of financial indicators was the concession of the bulk cargo terminal 2A in the middle of last year. The new owner is Bulgarian Maritime Fleet Co. – privatized in August 2008 and the German-Bulgarian consortium KGB Maritime Shipping, where the brothers Cyril and George Domuschiev have shares. Apart from this, competitors of the state-owned company are KRZ Port Bourgas (private port business specializing in metal processing, metal structures and bulk food cargos) and Port Fleet, providing specific services to vessels.
We are striving to implement competitive pricing to keep existing customers and attract new ones. But it is very difficult given the severe economic situation and competition, which offers lower prices, said Executive Director of the Burgas port Dian Dimov.
The largest customer of the state port last year was Aurubis AD but now its loads – primarily copper concentrate, goes to the concessionaire – Bulgarian Maritime Fleet. In the first quarter Burgas generated revenue only from copper cathodes. It decreased its cargo from other large customers as Militzer and Munch, Palma, Steel Industry, KCM …
An interesting detail is that in comparison with January-March 2011 the registered revenues from new customers, among whom Nadine commerce engaged in export of scrap, increased. This company bought what remeained of the former metallurgical giant Kremikovtzi and apparently already actively started selling it. But new customers definitely cannot compensate for the loss of old ones, so the result is logical – the profit for the quarter was just over 1.6 million lev, or 70% less than what was achieved in the same period of 2011 – 5.55 million lev.
A major impetus for the development of the port will be late 2013 when the new terminal for passengers is expected to be completed. Currently, together with Odesa, Sevastopol and Batumi, a new destination for Black Sea maritime passengers is actively promoted and this is Burgas, which intends to be not only a transit point for large passenger liners. If they stay at the port for longer periods, the port will collect higher fees.
