‘Public Access Zone- Burgas’ AD is a commercial association within the meaning of the Commerce Act. Founders of the association are:
- Bulgarian State Railways
- National railway infrastructure company
- Port of Burgas EAD
- Bulgarian Ports Infrastructure company
- Municipality of Burgas
The subject of the business activity is projecting, constructing and exploitation of an intermodal terminal and a Public Access Zone in Burgas since the association cannot offer port services within the meaning of the Law of the Sea Spaces. The headquarters of the company are located in Burgas.
I. History of the project
The idea of opening Burgas out to the sea has been a discussion topic for a long time. In the Site Development Plans and the General Site Development Plans of Burgas from 1978, 1984 and 1992 the territory of Port of Burgas has always been seen as a direct connection between the central city area and the sea.
The public and economic conditions, as well as the actual work pressure of the Port complex, have always been a serious holdback to the realization of this idea.
The management of ‘Port of Burgas’ EAD and other Bulgarian experts commenced wide-ranging research in 1992 for the reconstruction and development of Port of Burgas. Subsequently, a beneficial collaboration with Port of Bacelona was established for that reason. From 1994 to 1996 a number of pre-investment research concerning different port regions were commissioned and prepared. The whole gathered expertise and experience found their synthesized expression in 1996 for the development of the ‘General Development Plan of Port of Burgas until 2015’. This General Plan was approved by the Ministry of Transportation with Order RD-08-244 from March 21st 1997.
The idea of opening the city out to the sea started acquiring real dimensions in 1996 with the development of the already mentioned General Plan. This project without time limits envisioned part of Port of Burgas- East to be gradually opened for public access and to acquire the functions of a public zone.
Undoubtedly, the fact that Bulgaria is a member of the EU is an influence to such an approach, where the united politics for development of ports and their relation to the cities is in favour of a future publicly accessible zone for the citizens of Burgas, Bulgaria and the EU.
Acts of the Council of Ministers
With resolution number 38/25.01.2008, the Council of Ministers declares the Public Access Zone /PAZ/ an object of national value because of the fact that this object is a part of the National Transportation Infrastructure and it is an important consisting part of corridor number 8 to EU.
The governor of Burgas Municipality signed a memorandum defining the importance of PAZ for the general development of the region.
There was also a public discussion of the PAZ project. Representatives of different public, state, municipal and mercantile structures and specialists from different spheres attended the discussion. After prolonged debate a decision was taken granting full support of the idea on behalf of the concerned departments and companies, as well as the citizens of Burgas.
The elaboration of this research is based on a number of enactments of a higher rank in the Republic of Bulgaria, which outline the prospect of development in different spheres. Apart from the entire normative basis, the strategic developments of supernational, national, regional and municipal level play an important role:
- National strategy of regional development of the Republic of Bulgaria from 2005 to 2012 – a fundamental document for defining the long-term goals and priorities of the regional politics.
- Operational program ‘Transportation’ 2007-2013 – information about the framework the Bulgarian transportation section should develop in.
- Regional plan for development of the south-eastern region from 2007 to 2013 – general macroeconomic and social frames for development on the territory of Burgas, Yambol and Sliven.
- District strategy of development of the region of Burgas 2005-2015 – a strategic document for planning on a regional level.
- Municipal plan for development 2007-2013.
- General Site Development Plan of Burgas Municipality.
- General Development Plan of Port of Burgas.
II. Essence of the project
The essence of the project can be synthesized from the already issued acts of the Council of Ministers and the other state authorities, as well as from the public discussions. The analysis of these acts and the analysis of the plan documents for regional development and structure of territory form the basis of the integrated essence the project should defend. From the conducted analysis of the framework in which the project for Public Access Zone will be fulfilled several especially important moments are visible:
- In its nature the project covers all the expectations and perspectives for the execution of territorial, dimensional and economic development politics.
- The project is of major importance in relation to the strategic development of the eastern border of EU and fall into all possible hypotheses for funding a number of operational programmes.
- The project is of major importance to the creation an integration of the transportation scheme of public transportation in Burgas.
- The construction of intermodal connections between railway, water and bus transportation fortifies the effect of the actions for effective investment of European and national financial resource undertaken by the Municipality and the State.
- An important characteristic of the project is the structural change of the economic nature of the territory, which will lead to a strong push in four major fields: tourism, transportation, construction and service.
Bearing in mind the scale, specifics and the uniqueness of the project of Public Access Zone a new more detailed analysis of correspondence of the project to the politics of development has been made, followed by the local, regional, national and European authorities. This aspect is extremely important in relation to the success of the project as far as it is crucial to all management levels. Regarding the status of the project works, the fundamental developments which concern this project have been reviewed:
- Availability of a General Site Development Plan for the territory of Burgas including the Public access zone.
- Availability of a General Development Plan of Port of Burgas – approved and valid since 1996.
- General Development Plan for a railway junction in Burgas.
III. Location and territory range
The territory provided for the realization of the project ‘Intermodal passenger terminal- Public Access Zone’ includes the following territories:
- The territory of Port of Burgas- terminal ‘East’, with entire area of 306 202 sq.m. according to the Cadastral map and the Cadastral registry, approved with Order 18-9/30.01.2009.
- Terrain of ‘BSR’, with area of 7083 sq.m. according to the plan of central city part of Burgas.
- Landed property with a sole owner Municipality of Burgas, presenting Bus station ‘South’, consisting of a parking lot built on 2926 sq.m., a massive building built on 336 sq.m. and terrain with area of 3252 sq.m.
Apart from the already described territories in the range of development are included territories in the contact zone between the city and the zone for development of an intermodal terminal. In the eastern part the boundary of the development crosses ‘Al. Batenberg’ Boulevard and connects with the crossing in front of ‘Primorets’ hotel.
In this framework the general range of the development is made on a territory of about 580 decares, mainly including terrains of Port of Burgas, Railway junction Burgas and the central city part.
For the technical description of the territories, the existing buildings, facilities and infrastructure elements has been used a legal analysis, geodesic picture of the existing situation with detailed underground, ground infrastructure, buildings and facilities. Additional inspection, pictures and research as well as orthophotomosaic during the pre-investment research have been done.
The buildings and facilities on the territory provided for the construction of the Public Access Zone managed by Port of Burgas have also been described. These buildings and facilities are a public state property and are managed by State Enterprise ‘Port Infrastructure’.
IV. Economic description of the activities
The economic description of the activities performed at this instant on the territory of the Public Access Zone and the intermodal terminal has a direct relation to the expenses and advantages analysis included in the economic part of the development. All of the companies and structures working on the territory of the port or using its services have been inquired. The whole spectrum of economically active subjects with their finances, workers and technical means is taken as grounds for performing economic analysis.
Concept of the types of public services, sections and objects on the territory of Public Access Zone Burgas.
The concept is based on analytical conclusions from the developments so far, the prerequisites and politics of development of the existing port capacities in the countries in the EU, the correct practice and the exact needs of Burgas.
- Creation of prerequisites so that Burgas will transform into an important, strategic sea city of the connection Europe-Asia – ‘The East Gate’ of EU.
- Creation of a model via restructuring of territory for ecological development of city and port corresponding to the contemporary tendencies for sustainable development- ECOPORT 8.
- Reconstruction and guarantee of the direct connection of the city and the sea and execution of the European politics for high quality and skillful use of the water transportation as an element from the transportation system of Europe.
- Development of lasting interest in the territory of regional, national and international nature through disposal of specific functions, unique, attractive, with global regional and over regional significance.
- Construction of infrastructure for revival of the sea passenger transportation.
- Management and realization of sea traffic from Port of Burgas towards Asian transportation corridors.
- Ensuring the possibility of constructing a yacht port of a higher class.
- Ensuring the possibility of constructing a terminal for cruise ships from a higher class.
- Development of systems and infrastructure for control and improvement of the quality of the environment.
The concept is supported by specific offers by sections- ‘Transportation’ section, presenting the base onto which the project Public Access Zone is developed – intermodal passenger terminal. And the second section – public service, which is the second essential part of the Zone.
Important buildings and facilities for ‘Transportation’ section:
- The existing railway station
- A new railway terminal
- A new bus terminal
- Marine terminal 1- for city ferry junctions and yachts/180 yachts/.
- Marine terminal 2- for coastwise navigation – 5 ship positions.
- Marine terminal 3- international yacht navy- about 400 yachts.
- Marine terminal 4- international cruise terminal – 1+1 ship positions.
- Yacht club- educational base for children and adolescent, sailing sports.
- International congress center
- Attraction and research center for control and study of the Black Sea.
- Commercial buildings, offices.
- Office complex in the congress center area.
- Hotel complex in the congress center area.
- Commercial area and office complex.
- Museum of Burgas, sailing and navigation.
In relation to the economic part, there is a technique for defining the economic effеctiveness and expedience of the project with application of innovative information resolutions and realization of optimal investment programs. Through this technique the disadvantages of the subjective evaluation of profitability, the risk and correlation between the investment resolutions have been overcome. For evaluation of the effectiveness of the current project the following dynamic models have been used:
- Method of net present value (NPV)
- Internal rate of return (IRR)
- Cost and benefit analysis (CBA)
- Payback period (PBP)
- Examination of infernal cost of the project
With the conduct of the SWOT analysis the strong and the weak parts of the project have been examined and the chances and the risks of its realization have been identified.The development of the intermodal terminal, in the broad sense Public Access Zone, grants new opportunities for interaction of stations of the three types of transportation: sea, railway and automobile, and also creates preconditions for:
- Development of sea tourism through the inclusion of Port of Burgas in the list of ports for cruise and other tourist ships visits.
- Sea tourism will allow an expansion of the multiplе services offered to tourists who visit and have holidays at resorts north and south of Burgas.
- Restoration of the local sea transportation from Burgas to Nesebar, Pomorie, Chernomorets and Sozopol at least during the summer season.
- Increasing the number, types and quality of the transportation concomitant services for the citizens and guests of Municipality of Burgas.
- Integration and concentration of customs, border, agent, broker, delivery, post, financial, cultural, entertainment and trade services.
- Special attention has been paid to the development of water sports and the service connected with them: yachting, sport fishing, underwater swimming and sea archeology.
The conducted research and the determined basic parameters of the Pre-investment research will serve for future elaboration of a project ‘Public Access Zone-Burgas’ within the framework of the defined territory range.
V. Current situation
The current state of port facilities and infrastructure, procedures and projects is generalized in the paragraph below:
- Port of Burgas EAD discarded and cut into pieces four cranes situated on the territory of the Public Access Zone Burgas.
- With resolution number RD-09-61/16.07.2012 State Enterprise ‘Port Infrastructure’ opens a procedure for election of a executer in accordance to the Public Procurement Act with subject <
> The aim of the commission is to be projected, constructed and taken into exploitation an international sea passenger station as an element of the new passenger terminal on the Port of Burgas.
- Port of Burgas EAD prepares documents for participation in an open procedure on the following subject ‘Rehabilitation of port infrastructure systems’.
- Burgas Municipality integrates the road and entry-exit infrastructure of the Public Access Zone as a part of the project for development of city thoroughfares around the zone.