The International Finance Corporation will invest up EUR 12 million in improving logistics and shipping in Romania, with a particular emphasis on the Danube. The funds will go to Romania's SC Transport Trade Services and its subsidiaries and, according to the IFC, investment in the Danube shipping route will bring greater development to the region.

Mr Tomasz Telma IFC Director for Europe and Central Asia said that "Our investment will help TTS to acquire new vessels and further develop operations at ports on the Danube and in Constanta. The increased use of the Danube corridor can significantly improve trade and exports not only from Romania, but also from Austria, Bulgaria, Germany, Hungary and Serbia."

According to the IFC's statement, shipping goods by river is both cost effective and less damaging to the environment. It is also in line with EU policy, where there are plans to make the Danube one of Europe's most important trade arteries.

Mr Mircea Mihailescu president of TTS Group said that "It is just the right moment for TTS to join forces with IFC in supporting EU policies of routing more cargo to the river. This is the first step in a long-term project to be done with IFC's support."

Via the Danube development, the IFC promises large reduction in transport costs and a boost in trade for several core industries, such as agriculture, metals, mining and chemicals. The IFC is part of the World Bank Group, which is the largest global development institution focused exclusively on the private sector. The IFC targets sustainable growth in developing countries by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In the 2011 fiscal year the IFC invested USD 19 billion in projects around the world the institution’s biggest annual investment to date.

The TTS Group was set up in 1996 and its main activity is in freight forwarding. The company runs shipping and road haulage services and operates as a freight forwarder in international and domestic traffic, by river and sea.

Source - Romania Insider

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