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LUKA KOPER, d.d., Koper

Adria Terminali to Develop European Distribution Centre

2nd March 2007
Sežana, Slovenia

Luka Koper has purchased land, storage facilities, business premises, transport infrastructure and warehousing equipment within the BTC Terminal Sežana Cargo and Transport Centre complex. Upon an agreement between Luka Koper and BTC, Adria Terminali d.o.o. - a new subsidiary of Luka Koper - also took on 32 workers who were hitherto employed within the BTC operations department. Through this acquisition, Luka Koper d.d. will embark on the development of a network of transport and logistics centres which, compliant with its development strategy, shall represent the backbone of its logistics operations system. It is anticipated that the Sežana facility will gradually expand into a European regional distribution centre.

By way of this purchase, Luka Koper has also acquired nearly 20,000 m2 of storage facilities - of which 16,094 m2 are closed, and 2,151 m2 covered - together with 13,290 m2 of parking area for vehicle storage. In addition, the complex also encompasses a railhead, a direct link with the nearby motorway, and 375 m2 of business premises. Although the existing centre features machinery and other equipment necessary for service provision, these will have to be complemented; indeed, Luka Koper anticipates investing some two million euros in the modernisation and development of this facility.

The newly established company Adria Terminali d.o.o., which is in 100% ownership of Luka Koper d.d., shall provide storage and distribution services at Sežana. The new enterprise is to be headed by Mr Viktor Orel, who was previously technical manager of Luka's European Energy Terminal. In co-operation with skilled and experienced technicians from the parent company, it is anticipated that Mr Orel will bring the operations of the new company up to the standards and quality of service provision already being attained by Luka Koper d.d.

Today the management of Adria Terminali introduced themselves to the employees at Sežana, as did members of Luka Koper's management board. Mr Robert Časar, President of the Management Board of Luka Koper, stated, among other things: "Joining the Luka Koper Group offers you, as company employees, a high degree of stability and safety, but it also presents you with new requirements, expectations and new challenges. Luka Koper is well regarded as an employer - we invest in human resource development, provide good remuneration and motivate our employees in many other ways. At the same time, our expectations of personnel are high. Our development orientation requires constant adaptation to the requirements of working processes, self-initiative, innovativity, the acquirement of new skills and knowledge, as well as the application of all of these in everyday work"

For Luka Koper , the acquisition of the Sežana terminal and the establishment of Adria Terminali, is a significant strategic step in the implementation of the company's long-term objectives. Its extremely favourable location adjacent the 5th and 10th pan-European corridors, the close proximity of the Italian border, and direct connections to the motorway and rail network, give rise to exceptional advantages that provide a favourable logistics solution for various types of cargo being transported between Eastern, Southern and Western Europe. At the same time, these new storage facilities in the nearby hinterland of Luka Koper will provide important relief for some port operations that are, on occasions, overburdened.

The Adria Terminali business plan anticipates that it shall become a prime mover in the development of Sežana as a European distribution centre, as well as, by degrees, the administrator of an integrated inland network of Luka Koper logistics and transport terminals. Furthermore, through development and an increasing volume of operations, Adria Terminali will also expand and thus create new employment possibilities.

The information will be available from 2nd March on company's website www.luka-kp.si.


The Management Board


Date: 2. 3. 2007