TTS is a private company incorporated under the laws of Romania. The Company was established in 1997. TTS is privately held by 15 individual shareholders, 12 of whom are part of the company’s management. Its largest shareholders are:

- Mr. Mircea Mihailescu (50.99%)
- Mr. Ion Stanciu (14.14%)
- Mr. Viorel Stefan (10.10%)
- Mr. Peter Hungerbuehler (10.10%).

Together they own 85.33% of TTS. Mr. Mihailescu is the Chairman of the Board and Mr. Stanciu is the CEO of TTS.

The Company has adopted and is now implementing a capital investment programme of EUR 30.0 million for the period of 2011-14. All proceeds from the IFC investment will go towards increasing the share capital of TTS in order to finance part of this programme. This capital investment programme includes the modernization and acquisition of a variety of propelled and non-propelled river vessels, the capacity expansion at TTS operations at Constanta Port as well as the development or renovation of facilities in the Danube River ports operated by TTS Group. Part of the proceeds from the IFC investment will be directed towards enhancing IT systems of TTS Group.

16.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	16.0

* These investment figures are indicative

TTS is headquartered in Bucharest and has significant operations at Constanta Port (largest port in Romania and on the Black Sea). Navrom is headquartered in Galati. Its newly acquired or modernized fleet will be used on the Danube River, both within Romania and in neighboring countries. Canopus’s grain terminal is located at Constanta Port. TEP-operated river ports are located along the Danube River in Galati, Braila, Turnu Severin, Oltenita and Bechet. The Company is also contemplating installing special cargo handling equipment at Reni Port in Ukraine.

Substantial development impact will result from improving the country''s transport infrastructure, including:

- increased trade for several basic industries such as agriculture, chemicals, metals and mining;
- expanded capabilities in transporting agricultural commodities from the region which becomes increasingly important in supplying grains to the world market;
- improved cargo handling capacity and efficiency at the port of Contanta, a major trade hub in Central and Eastern Europe;
- further development of river transport, a more cost effective and environmentally benign transportation mode than the alternative road transport; and
- new river trade volume to Constanta, which will generate economic growth, boost local employment, and contribute to incremental tax revenues for the government.

A more efficient transportation system in Romania should contribute to further regional integration and should have positive spillover effects in neighboring countries, increasing trade among EU countries as well as among neighboring transitioning economies such as Ukraine and Moldova.

- Growth capital: IFC can provide the necessary equity capital to help fund the Company''s investment programme. At this stage in its development and given the economic environment, the Company will benefit from financing its expansion via equity rather than debt due to the flexible time horizon that equity capital offers.
- Preparation for IPO: IFC will work closely with the Company in preparing for the contemplated IPO, which will include a review of the corporate governance practices.
- Environmental & Social expertise: IFC will also refine and update the environmental and social performance and action plan implemented during the previous IFC engagement.

The E&S issues of this repeat category B project are essentially the same as those identified for the previous two investments and include:

- environmental, health and safety management systems of the TTS Group;
- river fleet safety and pollution control at Navrom;
- oil / hazardous cargo spill prevention and control at Navrom;
- maintenance / repair yard pollution control and hazardous materials and waste management at Navrom; and
- employee health and safety of TTS Group.

IFC’s ongoing review and supervision of the existing investments shows TTS Group continues to ensure that its operational facilities and subsidiaries comply with applicable environmental, health and safety (EHS) requirements, including: international navigation standards under 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 Ratings (ESRRs) for the two previous investments are Good.