Shareholders of Luka Zadar, the company that holds concession over Gaženica port in Zadar, voted for a capital increase of HRK 45 million at a meeting held on August 31. The share capital will raise from HRK 21 million to HRK 66 million, reports Morski.hr on September 2, 2017.
Prior to the meeting, the supervisory board also confirmed Luka Zadar will soon see an inflow of Chinese capital through an investment by the company Jiangxiong Hu, and relied on support from Zadar County and the City of Zadar.
“In order to support a positive business environment, Zadar County remains open to investors who want to expand their investment portfolios and invest in development projects in this area in a transparent and legal way. It’s economic development and modern infrastructure that make good living conditions possible in these parts. I want to remind you that Luka Zadar is a private company, so Zadar County has no way of influencing the ownership structure”, said Prefect Božidar Longin.
Longin confirmed Luka Zadar is regularly paying all the concession fees for the cargo port Gaženica. The company is contractually bound to invest a total of HRK 215 million in the area under concession before the end of 2039, but judging by the current state of affairs and their business results, Luka Zadar won’t be able to procure the required sum on its own. This is why the company turned to potential business partners who would be ready to invest, and is now ready to launch the first investment cycle.
Luka Zadar expects a large investment from the Chinese partners. In the first phase, Jiangxiong Hu will invest HRK 215 million, helping the port become a major player on the eastern Adriatic. In the second phase, the investment might raise up to €200 million, transforming Luka Zadar into a modern, competitive port. The Chinese investors recognised the port in Zadar as a good business opportunity thanks to its favourable strategic position, according to the announcement from the supervisory board.