AFTER MERCHANDISE TRAFFIC IN DANUBE"S HARBORS DROPPED 70% Administration of the Sea and Danube Galaţi requests state aid to overcome the crisis

The economic crisis cut the merchandise traffic 70% in harbors on the Danube, which caused the representatives of the Harbor Administration of the Sea and Danube (APDM) Galaţi to lower estimates on fees and commissions levied from harbor shipowners, which they now expect to drop below the 2009 budget, meaning they would not even cover current expenses. Mihai Ochialbescu, manager of APDM Galaţi, said: "Merchandise turnover dropped 70% YOY. Meaning, in January 2009, in the ports of Tulcea, Brăila and Galaţi we had 196 ships, with a merchandise traffic of 327.288 tons, as against a monthly average of 610 ships and 1,060,019 tons of merchandise in January 2008. Given these circumstances, if we cannot earn our estimated budget for this year, we won"t be able to survive. The amount of work that goes into port administration is the same, regardless of the number of ships that enter our ports, and overhead is in theory the same, regardless of the amount of ship traffic. Our expenses - maintenance expenses for all our harbors and wage expenses - amount to 6 millions lei a year. Last year, said expenses amounted to 6.5 million lei, and the budget for 2009 was built around 2008 numbers".

Ochialbescu said that in order to meet expenses he requested a state aid. "We had talks with the Ministry of Transportation and we have asked them to find a solution to help us, in the event we run out of money for supporting our harbors, in the form of a state aid", says Mihai Ochialbescu who says that they might be 500,000 to 1,000,00 euros short in 2009.

However, Mihai Ochialbescu admitted that APDM Galaţi can not receive money from state, unless the budget is amended, and following a Government Decree, as it is a national company.

APDM Galaţi manages harbors in the Brăila area (Brăila, Hârşova, Smârdan, Măcin and loading points Gura Arman and Turcoaia), Galaţi (the ore Port, Gala i Trade Port, The Docking Area and the Bazinul Nou Port) and Tulcea (Tulcea, Chilia Veche, Mahmudia, Isaccea and Marina).