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Washington, D.C., October 19, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, will provide a €14 million loan to Compania de Navigatie Fluviala Romana Navrom S.A. (Navrom), Romania's largest private sector river shipping company. Navrom is majority owned by Transport Trade Services S.A., a large, privately owned Romanian freight forwarder and transport company. IFC’s financing will be used to upgrade Navrom's fleet of pusher boats, improve efficiency, reduce operating costs, and help Navrom meet EU environmental requirements.
“IFC is delighted to help a leading Romanian transportation company expand its business and improve its quality of service. Our investment provides long-term financing, which is still difficult for Romania’s local companies to obtain,” said Francisco Tourreilles, IFC's Director of Infrastructure.
Shahbaz Mavaddat, IFC’s Director for Southern Europe and Central Asia, added, “IFC’s loan underlines our strong commitment to support the development of Romania’s private sector as the country moves toward accession to the European Union.”
Road traffic congestion in Germany and Austria is reaching volume levels, making sea and river transport an increasingly attractive alternative. Established in 1890, Navrom is the principal user of the port of Constanta and is Romania’s largest river shipping company. This former state-owned shipping company is a major owner of ships on the Danube, with over 400 barges and pushers. Its primary business is the efficient transport of bulk cargo. Navrom’s parent company, TTS (Transport Trade Services) S.A, was founded in 1997 and has grown into one of Romania’s largest logistics companies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. For more information, visit
www.ifc.org
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