Timişoara Intermodal Freight Centre: Is there room for private investors?

The project for Timişoara Intermodal Freight Centre consists in the development of an intermodal freight centre in Timişoara’s peri-urban area. This centre is supposed to serve economic agents from Romania, Serbia and Hungary over a 300 km radius. There are many discrepancies between the vision of local authorities and that of private investors. The project promoted by the private sector supposes the construction of the centre on a larger surface and additional investments which, on a long-term, could turn Timişoara into a western Constanţa, where most freight coming from the Occident and the Balkan region can enter Romania. The Romanian state, however, favours the intermodal centre in Arad, which in fact is the result of private initiatives.

The project developed by the local authorities supposes the construction of a container storage and transhipment complex over a 30 acre surface, as well as a railway station for freight traffic, including special equipment and installations for rol-ling road transport (Ro-La).
At the same time as the development of this project, lobby groups were created, made up of foreign investors and supported by several members of the Timiş County Council who want to create in Timişoara a dry port or Interporto, which would be the main entry point for freight in Romania from Western Europe and which would suppose the integration of the entire transport system from Timişoara metropolitan area. In 2000, a group of Italian investors launched two similar projects, both not finalized. In regards to the initial development of Timişoara Intermodal Freight Centre through public-private partnership (PPP), Sergiu Bălaşa, General Manager of the Agency for Economic and Social Development Timiş (ADETIM), stated for Railway Pro that “for reasons which cannot be placed in the responsibility of the state institutions involved in the development of the project, the initiative taken in 1999-2000 could not be finalized. This is why Timiş County Council decided to be the initiator of the project and also establish the degree of involvement of the private sector.”
The extended projects related to the development of the Timişoara Intermodal Freight Centre suppose the integration of the transport infrastructure, including transport along the Bega channel. The river would become navigable. The project deve-loped to that end was initiated in mid-2009. The extended projects also include the construction of a rail link between Timişoara and Traian Vuia International Airport, a freight station near the airport terminal, as well as a railway ring to include freight carriers. These projects would amount to a total investment of around EUR 100 Million and the surface of the Interporto would reach 90 acres.
According to Sergiu Bălaşa, the private sector would also be involved in the creation of Timişoara Intermodal Freight Centre: “the authorities are considering two financing options – SOP-T funding and private or public-private funding. The latter supposes that the operation and exploitation of the centre would fall under the responsibility of the private investor”. The authorities are currently analysing the possibility of financing this project from structural funds, in order to determine the necessary co-funding efforts, as well as the foreign funding sources. Since the initiation of the project in 2005, the investment volume has increased. In 2006, it was estimated at EUR 60 Million and in 2010 it increased to EUR 85 Million. According to Sergiu Bălaşa, the chances to obtain foreign funding are very high.

Recaş or Remetea Mare?

In order to develop a large project such as the one for Timişoara Intermodal Freight Centre, in case of the extended projects, the location selected should be a few kilometres outside the city, like Remetea Mare. This alternative is supported by Timişoara City Hall. There are several alternatives being considered by the Timişoara County Council and City Hall: Recaş (a location supported by the County Council), Remetea Mare, Giarmata, Orţişoara, Cerneteaz and Cărani.
The local press in Timişoara claims that the disputes related to the location of the future intermodal centre are due to the political dissensions within the city halls. According to Viorel Sasca, Economic Chairman for CJ Timis, “it is an act of irresponsibility to establish the location based on political interests and not on economic criteria”.
The feasibility study regarding the location of the centre was finalized in the fall of 2009 and it was financed through PHARE with an amount of EUR 67.000. However, according to Marius Cârceie, Economic Advisor within Timişoara County Council, this study is not taken into account.

by Alin Lupulescu


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