26203 - S.C. Transport Trade Services S.A.

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Environmental & Social Review Summary

Project Number

26203

Company Name

TTS ( TRANSPORT TRADE SERVICES ) SA

Date ESRS Disclosed

Nov 13, 2007

Country

Romania

Region

Europe

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Feb 22, 2008
Signed : Apr 10, 2008
Invested : Jul 17, 2008

Sector

Water Transportation

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Transport Trade Services S.A. (TTS) and its subsidiaries and affiliates (TTS Group or the Group) are leading providers of integrated logistics and freight forwarding services in Romania and an existing IFC client. TTS Group is expanding its inter-modal operations in the Danube and in Constanta Port in the Black Sea. Investments include, among others:

- finalizing the construction of a grain handling terminal;
- refinancing the purchase of an 80-ton crane;
- purchasing equipment for its new silo in Galati; and
- refurbishing/acquisition of up to seven pushers over the next two years.

IFC will support this expansion plan through a general purpose corporate loan.

Overview of IFC's Scope of Review

This is a repeat investment for an original project (TTS #24802) that was appraised and committed in 2005. A site visit and meetings for the original investment were conducted on April 1, 2005 at TTS operations in Constanta Port, on the lower Danube River, and the corporate HQ in Bucharest. Since then, IFC has conducted periodic and ongoing supervision of TTS’s environmental performance by reviewing Annual Monitoring Reports for the years 2005 and 2006.

This new investment comprised a desk review of the company responses to email queries surrounding updated information for the key E&S issues associated with the original investment, as well as new information regarding labor and working conditions (i.e., human resources policy, collective bargaining agreements, and related matters).

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement

TTS operations at Constanta and Galati are confined to limited areas within the larger industrialized ports, and there is no community exposure to risks or impacts, or people to be affected by additional land acquisition. Activities do not extend to any ecologically sensitive areas. There are no indigenous peoples or cultural heritage issues associated with the project.

Issues are essentially the same as those identified for the original investment and include:

- environmental, health and safety management systems;
- vessel safety and pollution control;
- oil/hazardous cargo spill prevention and control;
- maintenance/repair yard pollution control and hazardous materials and waste management;
- and employee health and safety.

IFC’s ongoing review and supervision of the existing investment shows the company continues to ensure that its operational facilities and subsidiaries comply with applicable environmental, health and safety (EHS) requirements, including: international navigation standards under the International Safety Management (ISM) Code of the IMO, the Danube Commission recommendations, Romanian shipping-related rules and EHS laws, and IFC Performance Standards.

IFC’s current Environmental and Social Risk Rating (ESRR) for the original project (#24082) is B – 1 – Good.

Environmental and Social Mitigation Measures

- Environmental Management Systems:

TTS has a written corporate policy indicating management’s commitment to navigation safety and the protection of the environment in the conduct of their shipping activities. Objectives include compliance with relevant safety and environmental protection rules governing river transport and related activities in Romania and on the Danube River. The Group has defined and established an organizational structure with the appropriate responsibility and authority to manage EHS matters. Employees are trained at several levels to ensure they have the knowledge and skills to perform their work consistent with TTS safety and environmental policy and objectives. There are written operating procedures covering navigation safety, environmental protection and employee health and safety, and performance is monitored through a system of periodic inspections and internal audits. Non-conformities and accidents are investigated and corrected, as necessary. Senior management reviews performance results annually and ensures that appropriate adjustments to procedures are made.

Labor and Working Conditions:

TTS and its subsidiaries currently employ over 1000 staff, of which approximately 400 are directly involved in river barging/sailing activities. The company’s human resource policies and procedures are consistent with Romanian labor legislation. Addressing the principals of non-discrimination and equal opportunity, the policies are reflected in the collective work agreements registered and enforced by the Ministry of Labor. The agreements cover the obligations of the employer and employee, including: working conditions and labor protection, wages and other salary rights, holidays and time off, disciplinary procedures, individual contracts of employment, professional development, and social protections. No retrenchment is contemplated.

TTS has an active occupational health and safety program designed to comply with Romanian workplace regulations and ensure the safety of their crews and workers. The program includes a set of specific safety and health procedures for ship and shore-based activities. Workplaces are designed with appropriate health and safety protection equipment and systems in place. Personnel are provided with appropriate personal protective equipment, and participate in extensive health and safety training programs covering fire fighting, hazardous work activities, life saving, and medical first aid. Sailors and shore staff undergo periodic medical examinations. TTS and the Romanian regulatory authorities both conduct regular inspections of the ships and the repair yard to ensure all health and safety requirements and procedures are being properly followed. Job-related accidents and incidents are investigated to prevent reoccurrence. No significant incidents have occurred over the last two years.

Pollution Prevention and Abatement:

TTS Group ships are designed and operated to meet Romanian safety and pollution control requirements, as well as the international marine safety standards of the IMO. Vessels are all equipped with tanks and containers for storing ship-generated wastes and effluents – domestic wastes, maintenance waste and oils, bilge waters, sanitary wastewaters, recyclable plastics, metals and glass. When accumulated, segregated wastes are separately delivered to authorized port collection centers or specialized ships for treatment and disposal. In between carrying certain cargoes, barges are cleaned by licensed contractors, and the wastes generated during cleaning are properly disposed by these parties.

The Group has all necessary certificates to permit operation of its ships and barges with regard to safety and environmental protection. The ships are periodically inspected by Romanian navigation authorities for compliance with safety and environmental requirements in accordance with approved schedules.

All the Group’s ships requiring fuel are equipped with secondary containment around the fueling connection area, and associated spill collection tanks. In addition, all vessels have the requisite oil spill clean-up equipment and absorbent material on board to contain spills.

With the exception of oil and diesel fuel, the principal cargoes that the TTS Group transports are not considered hazardous or dangerous. In accordance with IMO, the Danube Commission recommendations, and Romanian requirements, vessels engaged in the transport of oil have plans and procedures in place for handling and storage of the material, as well as responding to emergencies, such as collisions, grounding, fire, and spills. In addition, these ships are suitably equipped with fire/spill prevention and emergency response equipment and supplies on board in the event of any accident. Crews are trained in fire fighting and hazardous cargo handling and emergency response, and provided with appropriate personal protective equipment. Training includes both classroom training and emergency drills. As appropriate and depending on the size and location of a spill, the Group coordinates with, and often relies upon, the spill response resources of the ports in which it operates. As required by law, these ports have sufficient oil/chemical emergency response plans, procedures, and equipment.

The Group has not experienced any oil spills or emergencies involving hazardous cargoes within the last three years.

The Group operates a ship repair and maintenance yard at the Galati port that services the technical and maintenance needs of their river vessels. Activities include:

- dry-docking repairs of ship hulls, pipelines and propulsion and steering systems;
- cleaning (i.e., sandblasting) and painting of hulls and superstructures; and
- mechanical equipment maintenance (repairs of deck machinery and engine room equipment).

Ship repair necessarily involves the storage and handling of hazardous materials, like paints, solvents, and oils. Repair activities also generate effluents, emissions, and wastes –waste particles from shot blasting, metal scrap, paint wastes, spent solvents, waste oils, discarded containers, other paint contaminated materials, waste scrap, and sludges. Wastes and hazardous materials are managed properly to avoid contaminating the environment and potentially harming the health of workers and local residents. Wastes are collected, temporarily stored, and delivered to specialized, licensed waste management contractors serving the entire port area. There is no evidence that historical operating practices at the repair yard contributed to subsurface contamination of the properties or sediments of the adjacent water bodies.

Fugitive dust emissions generated by grain terminal operations will be controlled by state-of-the-art ventilation systems and filters consistent with EU standards. Wash waters and storm water contaminated with solids will be treated for the removal of these materials prior to discharge to the Black Sea consistent with regulatory requirements.

Stakeholder Engagement

Owing to the location of nature of TTS’s operational facilities and activities within the larger, industrial ports of Constanta and Galati, the company is not directly involved in formal information dissemination programs regarding the management of environmental risks and impacts. Instead, the government entities that manage these ports develop and maintain the engagement relationships with neighboring communities consistent with Romanian laws and regulations and commensurate with the port-wide adverse risks and impacts posed. Similarly, public entities that regulate and manage Danube River shipping activities have assumed responsibility for appropriately engaging with communities along the River. Notwithstanding, as part of its EHS management system, TTS will establish methods for communication of the environmental aspects of its operations to external interested parties. In addition, the company will establish and maintain procedures for receiving, documenting and responding to concerns from any external interested parties.

For more information please contact:

Antonio Stoean, Deputy Manager
S.C. Transport Trade Services S.A.
34 Vaselor Street, 021254
Bucharest, Romania

Telephone: +40-21-210-2907
Fax: +40-21-210-3543

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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