Kremikovtzi Steel Mill Bankruptcy Gets Burgas Port Workers on Strike

Business | February 16, 2010, Tuesday // 14:26|  views

A brand new terminal at the Port of Burgas appears to be useless now that the Kremikovtzi mill is bankrupt and about to be liquidated. Photo by BGNES

Some 300 employees of Bulgaria’s largest Port of Burgas went out on strike Tuesday over an unfavorable state loan to the port.

The rally was organized by the two major Bulgarian trade unions – the Confederation of Independent Bulgarian Syndicates (KNSB), and the Labor Confederation “Podkrepa” (“Support”).

The port administration and workers are protesting against a state loan taken by the port management from the state for the construction of a new cargo terminal.

The new Terminal 2-A has been constructed solely to serve the deliveries of raw materials to Bulgaria’s formerly largest steel-mill plant Kremikovtzi, located outside of the capital Sofia, some 400 km away from the Black Sea ports.

However, as mismanagement and draining left the Kremikovtzi mill in a state of bankruptcy and possible liquidation, the new freight terminal in the Port of Burgas has been unused.

As the gratis period of the state loan ended in 2008, the Port of Burgas is paying back to the state about BGN 3 M per year.

The protesters are demanding that all revenue from the port terminals remain for the company managing the port rather than go into the state budget through the Port Infrastructure state company.

They insist that unless the government agrees to this condition, it should renounce the debt of the Port of Burgas.

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Tags: Kremikovtzi, Port Burgas, workers, workers protest, protest rally

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