PKN Orlen to join forces with IVG Terminal Silesia

PKN Orlen, having been excluded from the first phase of the government's program to privatize dominant fuel storage company Naftobazy, has plans to launch a competing logistics project. The Płock-based oil giant has signed a letter of intent with Germany's IVG Terminal Silesia to create a joint-venture. The new company would provide storage services as well as pipeline transportation and trans-shipment of fuels. "Such co-operation will give us confident business development both in Poland and abroad. The significance of our terminal in Radzionków will increase. We are also counting on providing services involving the modernization and enlargement of the existing terminal network," said the head of IVG Terminal Silesia, Marek Stoń. If the letter of intent is finalized with a signed contract, the Naftobazy privatization may fall in value however analysts say Orlen can only withdraw around 10%-20% of their storage contracts with Naftobazy. (Puls Biznesu, p. 5) A.K.