Port of Koper


Port of Koper is a public limited company, which provides port and logistics services in the only Slovenian port, in Koper. It is situated in the Gulf of Koper in the northern part of the Adriatic Sea, mainly connecting markets of Central and Southeast Europe with the Mediterranean Sea and Far East. Unlike other European ports, which are managed by port authorities, the activities of Port of Koper comprise the management of the free zone area, the management of the port area and the role of terminal operator. It is currently the main port that serves the route between the Adriatic sea and Central Europe.

Business

Terminals of the port

The Port of Koper has 12 specialized terminals:
The core business covers cargo handling and warehousing services for all types of goods, complemented by a range of additional services for cargo with the aim of providing a comprehensive logistics support for customers. The company manages the commercial zone and provides for the development and maintenance of port infrastructure.

History

Before World War II

From its establishment during the era of the Roman Republic, maritime trade has played an important role in the history and development of Koper. The town received a charter from Holy Roman Emperor Conrad II in the early 11th century, while in the 13th century the Patriarchs of Aquileia granted Koper domain over its northern Istrian hinterland. In 1279, Koper was absorbed by the Venetian Republic, and developed into the pre-eminent commercial and administrative centre of Istria. Following the fall of Venice in 1797, the entire region was absorbed into the Habsburg monarchy, and, for a short while, Koper was known as the Imperial Austrian Port.
When Trieste and Rijeka were proclaimed as free ports in 1719, Koper's status, trade, and influence began to ebb. The collapse of the Venetian Republic and the transfer of local administrative and political power to Trieste that followed further hastened this decline. Koper's maritime and commercial stagnation continued, first under Habsburg rule, and then after 1919 under the Italian rule. Insecurity as to its future continued into the post-war era, during the period of the Free Territory of Trieste. Koper's status and long-term future were finally resolved in 1954 through the signing of the London Memorandum of Understanding, by way of which Zone B of the territory—including Koper and Istria—was ceded to Yugoslavia. The partition of the Trieste Free Territory led to mass emigration by ethnic Italians living in Istrian coastal towns. Neglected for more than two centuries, their commercial potential was poor and their industries obsolete, whilst maritime traffic and trade was strictly limited to local needs.

Afterwar period

In investigating new possibilities for the development of Slovenian Istria, a group of enthusiasts began considering the potentials for construction of an international seaport. In 1957, they prepared an investment programme for the development of 135 metres of Koper's northern shore, while 23 May that year saw the foundation of the first handling and warehousing company Pristanišče Koper. Thus the new venture was established, employing local workers whose experience was crucial in the organisation of this new and intrepid undertaking.
By August 1957, the Peter Klepec, a floating dredger had deepened the seabed along the northern shore of town, and concreting the area around the first berth began in December. At the same time, work began on a dyke across the Stanjon inlet, and thus the operative areas of the new port began to take shape by a continuous process of dredging and accumulation. The Port of Koper was eventually permitted to join the Association of Yugoslav Ports, and in October 1958 received the state consent for its investment programme. At last due recognition was at hand.

The founding of ''Luka Koper''

Despite developing in an era in which imports were rising, it was difficult to attract business away from the established ports in the region, such as nearby Port of Trieste and Port of Rijeka. But development gradually enhanced the port's competitive edge, as did its openness to prospective users, and this led to increasingly widespread commercial co-operation as well as the establishment of what were to become long-term partnerships between the port and its customers. It was mainly companies trading in foodstuffs and timber - including, amongst others, the national Silo and Warehouses Administration, Emona, Slovenijales and Centroprom - that decided to co-finance or invest in the construction of the necessary infrastructure.
Based on the resolution of the company's Workers` Council in October 1961, Pristanišče Koper changed its name to Luka Koper, and operated as a socially owned and managed enterprise. The company's objectives were clear, and by the end of 1962 its integrated operations were functioning efficiently. Development continued with the acquisition of the Dekani cold storage facility and the purchase of disinfection and fruit ripening units. By 1962, annual throughput amounted to 270,000 tonnes. Freight passing through the port was for the most part hauled by road, with a minor portion travelling by rail to Kozina, and from there transported by truck to Koper, and vice versa.
Imports were destined for the Slovenian and Serbian markets; unlike neighbouring Croatia, Serbia did not have its own access to the sea. During the early 1960s, outgoing maritime cargo, exports from the European continent, amounted to a mere 20 percent of total traffic, while the proportion of transit goods was similarly low. With nearly the same capacities and improved organisation, 1963 witnessed a throughput of 628,456 tonnes of cargo. This rapid growth was the result of increased imports of wheat, rice, fertiliser and fodder. As a consequence of its solid performance, in conjunction with its geographic and other advantages, Luka Koper gained the trust of its foreign partners, and recorded record growth.
The excellent results achieved in 1963 were also a consequence of the establishment of the first free zone, Luka Koper was able to provide a range of services for companies using the port. This new orientation required the reorganisation of the company into six units: Handling, Warehousing, Timber, Maintenance, Joint Services and Luški dom.

Era of railway

Accelerated development and operational growth revealed the inadequacy of communications with the hinterland. Various problems pertaining to the co-ordination of rail and road transport between Koper and Kozina increased the demurrage costs of vessels, wagons and trucks. Nevertheless, the freight handled by Luka Koper continued to rise, and in 1966 amounted to 788,616 tonnes.
Both the Yugoslav as well as the Slovenian authorities did not look favourably to the construction of a rail link for Koper, thus Luka Koper itself financed the initial study and project documentation. In 1964, following exhaustive negotiations, the company commissioned the scheme, and work on the new railway got underway. Despite financial difficulties and the troublesome terrain, construction work gradually proceeded, and an auspicious and lavish inaugural ceremony on 2 December 1967 marked the commencement of operations on the 31-kilometre line between Koper and Prešnica.
Soon afterwards, provisions adopted by Yugoslavia's Federal Executive Council gave fresh impetus to Luka Koper's development. Namely, foreign companies were allowed to invest in local enterprises active within the port's free zone. The construction of the Bulk Liquids Terminal was one such tangible consequence of these provisions.
Foodstuffs still accounted for the majority of cargo passing through Koper. In 1967, the total throughput of tropical fruit amounted to 113,000 tonnes, which placed it top of the list of Yugoslav ports handling such perishables. There was also an increase in transit cargo, in particular for Czechoslovakia, Hungary, West Germany, Austria, Italy, Switzerland, as well as Bulgaria, Romania and the USSR. Between 1968 and 1977 the development of the Port of Koper was exclusively dependent on indigenous resources, namely the company's own profits and raised loans. A high degree of indebtedness in conjunction with rapid development led to a number of economic and operational difficulties.

A leap in growth in the late 1960s

The most important investment in 1968 was the construction of the liquid fuels terminal, which began operations in November of that year. Indeed, petroleum derivatives saw the greatest rates of annual growth over the ensuring years. The railway was now proving itself to be an excellent investment, and even more ardent opponents to the project were finally forced to admit its worth. As a result of favourable public opinion and excellent performance, the Koper line was officially incorporated into the national rail network. At the same time the state committed itself to an interest-rate subsidy on loans raised for the development of port infrastructure, an action which greatly relieved the company's debt burden, particularly as regards the financing of the railway and port infrastructure. Accelerated development, and the large liabilities accrued through such ceaseless investment, affected cash flow and solvency. Employment conditions deteriorated, which led to a large turnover in personnel: 703 new workers were employed in 1969, while 490 also left the company. Due to the shortage of domestic labour, workers were brought in from other Yugoslav Republics. All of these conditions concerted negatively on Luka Koper's operations, and the countermeasures adopted ameliorated the situation only slightly.