Environmental Assessment Report

Environmental Audit Report September 2009

Prepared by Scientific Research Firm Gamma for Sea Port Corporation

This report has been submitted to ADB by Corporation and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Poti Sea Port Corporation

Environmental Audit Report for Current Operations of Poti Sea Port

Executed by:

Scientific Research Firm Gamma President Vakhtang Gvakharia

Tbilisi-Poti 2009

9 M. Alexidze st, 0193, , tel: +(995 32) 330 274, 330 374 tel/fax +(995 32) 333 268 e-mail: [email protected]

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Corp. Page 2 of 38 Content 1 INTRODUCTION...... 3 2 BRIEF DESCRIPTION OF POTI SEA PORT OPERATIONS ...... 4 2.1 ABOUT POTI SEA PORT ...... 4 2.2 PORT’S EXTENSIVE DEVELOPMENT...... 7 3 DESCRIPTION OF PORT’S TECHNOLOGICAL PROCESSES ...... 7 3.1 TECHNOLOGICAL SCHEME AND CAPACITY OF OIL PRODUCT HANDLING ...... 7 3.2 TECHNOLOGICAL SCHEME AND CAPACITY OF LIQUID CHEMICAL HANDLING ...... 9 3.3 TECHNOLOGICAL SCHEME AND CAPACITY OF BULK CARGO HANDLING...... 9 3.4 TECHNOLOGICAL SCHEME AND CAPACITY OF CONTAINERIZED CARGO HANDLING ...... 10 3.5 TECHNOLOGY OF FERRY HANDLING...... 11 3.6 OTHER BERTHS ...... 11 3.7 ACCESS CANAL...... 12 3.8 BRIEF DESCRIPTION OF MEASURES EXECUTED TO REDUCE ENVIRONMENTAL IMPACT OF PORT’S OPERATIONS...... 13 3.9 DESCRIPTION OF AUXILIARY INFRASTRUCTURE...... 14 3.9.1 Storage Facilities of Berths...... 14 3.9.2 Potable, Domestic and Technical Water Supply Systems ...... 14 3.9.3 Industrial/Stormwater Sewage Systems Wastewater Treatment Facilities ...... 15 3.9.4 Industrial (Flush) Wastewater and Storm Water ...... 15 3.9.5 Domestic and Sewage Waste Water...... 19 3.9.6 Domestic, Sewage and Bilge Waste Water from Ships...... 19 3.9.7 Waste Water Treatment ...... 19 3.10 WOOD PROCESSING WORK...... 20 3.11 MACHINE SHOP...... 20 3.12 ACCUMULATOR ROOM...... 20 3.13 GENERATOR’S SITE ...... 21 3.14 WASTE MANAGEMENT...... 21 3.15 ORGANIZATION CHART OF CORPORATION ...... 23 3.16 ENVIRONMENTAL DEPARTMENT OF CORPORATION ...... 24 4 NATURAL RESOURCES USED FOR PORT’S OPERATIONS...... 25 5 OVERALL DESCRIPTION OF PORT’S AREA...... 25 5.1 QUALITY OF SEA WATER ...... 25 5.2 QUALITY OF SOIL AND GROUND...... 28 5.3 SEISMIC CONDITIONS ...... 28 5.4 QUALITY OF AMBIENT AIR...... 29 5.4.1 Air Pollution...... 29 5.4.2 Noise Propagation ...... 30 5.4.3 Biological Environment and Sensitive Areas ...... 30 5.4.4 Protected Areas ...... 31 5.5 WASTE MANAGEMENT...... 31 5.6 HEALTH AND SAFETY ...... 32 5.7 EMPLOYMENT AND ECONOMIC WELFARE...... 33 5.7.1 Traffic...... 33 5.7.2 Cultural Heritage...... 33 6 IMPACT OF PORT’S OPERATIONS AND MITIGATION MEASURES ...... 34 7 CONCLUSIONS AND RECOMMENDATIONS ...... 37

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1 Introduction The present report is prepared upon request of Poti Sea Port Corporation and discusses findings of ecological audit of the Port’s current operations. The report is based on the Port’s environmental impact assessment for 2008 and ecological audit for 2009, executed by Scientific Research Firm Gamma.

The report describes current condition of the Port’s infrastructure and main technological processes; on the basis of available materials, laboratory examination and in situ measurements estimated is background condition of the Port’s area and the neighborhood; estimated is environmental impact and health effect and developed are relevant mitigation measures.

Soil, water and air samples are examined by the laboratory of Scientific Research Firm Gamma (Accreditation Certificate №GEO-268-20503772-3.1-0147).

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2 Brief Description of Poti Sea Port Operations

2.1 About Poti Sea Port Poti Sea Port is a large, mechanized, modern transportation enterprise playing greatest role in implementing strategic objectives of Georgia and improving the country’s economy as significantly contributes to import and export. Geographic location of Poti Port makes it one of the junction points of the Caucasian corridor. It directly linked to greatest European and Asian ports, ferries navigate directly to the port in Ukraine and . The Sea Port is connected to the railway network of the country and every Georgian city can be reached by motor-ways. The Port is also linked to Poti Airport and International Airport (80 km).

Purpose of Poti Sea Port is to transship and temporarily store various cargoes. The Port is equipped with modern technique and meets European standards. There operate open and indoor warehouses, motor- and rail-roads and other auxiliary infrastructure.

Besides the Black Sea water area the Port occupies 51,23 ha of land including: regime area – 32,36 ha, hydraulic works – 14,39 ha, the Port’s administration – 0,036 ha, other areas – 4,444 ha.

The Port has eight handling complexes, located at 15 berths of “Northern Port” and “Internal Basin”, total length of which comprises 2873 m. Table 2.1.1 gives a list of the Port’s berths and their general characteristics and Figure 2.1.1 shows the berth’s scheme.

Table 2.1.1. Profile and Characteristics of Berths and Berth Characteristics Berth № Type of Main Cargo Length (m) Depth (m) 1. Oil and products 200 12,5 2. Chemical cargo and ro-ro terminal 183 12,5 3. Bulk cargo 215 8,5 4. Bulk cargo 154 8,5 5. Bulk cargo 173 8,5 6. Bulk cargo 212 9,75 7. Containerized cargo 211 8,25 8. Bulk cargo 215 9,75 9. Bulk cargo 220 8,00 10. Bulk cargo 264 8,00 11. Berth 71 8,00 12. Berth 250 6,1 13. Ro-ro terminal 97 6,5 14. Containerized cargo 253 8,4 15. Wheat delivered to the mill 155 8,5

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Figure 2.2.1. Berths’ Layout for Poti Sea Port Corporation

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Environmental Audit, Poti Sea Port Corp. Page 6 of 38 As given in Table 2.1.1, berths 1 and 2 handle oil/products and other liquid chemicals. Berth 2 also operates ferry passage. It shall be noted that berths 1 and 2 were reconstructed; oil polluted ground was replaced there; new industrial wastewater/stormwater drainage system was arranged; a treatment facility is being arranged for industrial wastewater/stormwater to ensure treatment and neutralization of the berths’ wastewaters before in-depth discharge into the internal water area of the Port.

Universal berths 3-10 are designated for general, containerized and bulk cargoes. Berths 11-13 serve the Port’s fleet. Berth 12 was a passenger’s in the past.

Berth’s 14 and 15 are under reconstruction, as considered by the prospective development plan of the Port. Container terminal will be organized at berth 14 and wheat terminal capable to deliver cargo immediately to the mill will be arranged at berth 15.

Ships enter the port via assess canal, consisting of two bends. Its total length comprises 1600 m, internal bend – 650 m, external bend – 950. Design depth of the canal is 13.0 m, though its actual depth is lesser due to sedimentation. The Port purchased a dredger to maintain the canal’s depth. Despite intensive dredging operations the canal cannot be maintained at the design depth. The Port is incapable to receive large draught vessels due to little depth of the access canal.

Number of vessels called the Pea Port and respectively its turnover is significantly increased in resent years (see below the charts from the Port’s official web-site). The Port mainly employees local population; total number of the Port’s personnel is 1200.

Turnover 2000-2008 (ths t/y) Cargo Types 2000-2008 (ths t/y).

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2.2 Port’s Extensive Development As the charts above show, throughput of the Port increases year by year due to its geographical location. Though without expansion difficult will be to maintain the Port’s long-term competitiveness even if reconstructed and modernized because: • Dimensions of the internal water area and the access canal cannot ensure safe passage and maneuver for large vessels, which can be received only be 2 or 3 berths of 12.5 m depth; • Capacity of storage and handling facilities are already fully employed; • Municipal development bars vehicle and railway transportation and development of railway network.

The mentioned and some other factors, which are obstacles to future development of the Port necessary is to prepare its extensive development plan.

Extensive development plan of the Poti Port is a global project, which envisages construction of a new port north to the existed one. At present feasibility study is in progress for the new port’s development; preparation of detailed project design is planned for 2010.

3 Description of Port’s Technological Processes As mentioned, the Port has 15 berths equipped with handling facilities. Liquid chemical, bulk, general, containerized and ro-ro cargoes are passed through them.

Handling operations are executed in compliance with approved rules, technological regalements and maps, and other regulatory documentation. Below is described process flow for handling of various cargos.

3.1 Technological Scheme and Capacity of Oil Product Handling As shown in Table 2.1, oil products (petrol, naphtha, diesel fuel, kerosene, etc) are received by berth 1, which can serve vessels of 200 m long, 32 m width and 10.8 m draught. Tankers of 16 ths ton capacity can be handled there, when pumping station operated on an average capacity (600 m3/hr).

Handling of oil products envisages (operating technological scheme № НН-2.1) simultaneous operation of upper and lower discharge systems, pipeline, pumps and loading arms. Lower loading/unloading method is applied for crude oil; meantime, petrol, diesel fuel, aviation kerosene, bitumen and other oil products are handled via upper loaded/unloaded method.

As a rule, loading from a tanker to tankcars is carried out by crew, with use of the tanker’s pump. Reverse loading occurs with use of the terminal’s pumps. Throughput depends on cargo’s characteristics, pump capacity and diameters of pipelines and hoses.

Oil terminal is rented and operated by Channel Energy Ltd. The first phase of the terminal is located northwards berth №3 and the second phase – eastward to the container’s terminal. The terminal is provided with steel vertical tanks, pump stations, tankcar handling facilities, pipelines and other auxiliary infrastructure. Total capacity of tanks totals 36 000 m3 and 20000 m3 for the first and second phases respectively.

Annual turnover of oil products is the following (by actual data from 2008):

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ƒ Diesel fuel – 354 374 t/y; ƒ Kerosene – 88 768 t/y; ƒ Petrol - 415 857 t/y.

Technological design of the terminal includes a reverse scheme for oil products’ reception, storage and delivery.

• Export scheme considers reloading of products from tankcars to tanks, which are provided with anti-vaporization technical equipment – pontoons. Then products are pumped via 1000 m3/h capacity pump to a tanker moored at berth №1. • Import scheme is reverse: diesel fuel, petrol and kerosene are pumped (at 1000 m3/h capacity) from tanker to tanks, and further to tankcars. In some cases petrol can be delivered directly to tankcars (at 500 m3/h rate), omitting a tank.

Workers occupied with handling operations shall be provided with proper personal protection equipment.

Figure 3.1.1. View of Berths

Figure 3.1.3. Tankyard of Phase I of Channel Energy Poti Ltd

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3.2 Technological Scheme and Capacity of Liquid Chemical Handling Technological line provided at berth 2 for handling chemical cargo mainly conveys black and white pyrolysis resin, isopropyl alcohol, dichloroethane, ethylene glycol, etc.

Majority of liquid chemical cargo belongs to the category of hazardous cargo and are easily inflammable liquids carrying various hazard degree. Besides, isopropyl alcohol is corrosive. The handling flowchart (operational flowsheet № НН-3) includes a tankcar handling facility. Depending on characteristics of a cargo, tankcars are delivered to the handling facility in the following amount: ƒ Pirolysis resin -10 tankcars; ƒ Crude oil - 8 tankcars; ƒ Isopropyl alcohol and solvent (white spirit) – 4–4 tankcars.

The handling line is provided with: a tankcar handling facility and upper and lower discharge units; pump stations supplied with pumps in order to load products from tankcars to tankers.

Liquid chemicals entered the port in tankcars: dichloroethane and ethylene glycol in tankcars not supplied with lower discharge units; isopropyl alcohol and pyrolysis resin – in ordinary tankcars with lower discharge unit. Respectively, lower discharge and filling are applied to pirolysis resin, crude oil and isopropyl alcohol, and upper discharge/filling – to solvents (white spirit).

Throughput depends on cargo characteristics, pumps’ capacity, diameters of used pipelines and hoses. Pump capacity for pyrolysis resin is 240.0 m3/h, for other chemicals –100.0 m3/h. Annual throughput of the technological line depends on tankcar and tanker delivery rate.

The ground for handling liquid chemicals is allocated from bulk cargo ground, which is served by two portal cranes. Operation of the portal cranes and respectively handling of dry cargo is prohibited whenever chemical cargo is being pumped from tankcars to tankers. The portal cranes shall be in an initial position at this moment.

Workers occupied with handling operations shall be provided with proper personal protection equipment.

3.3 Technological Scheme and Capacity of Bulk Cargo Handling Bulk cargo operations are mainly performed at berths 3, 4, 5, 6, 8, 9 and 10. These berths are equipped with mobile portal cranes, open storage grounds and mobile bunkers delivering cargo to railway carriages. Cargo can be either directly delivered to carriages/vessels, or temporarily stowed.

Berth 8 mainly conveys bauxite, manganese ore and other bulks; berths 9 and 10 pass packed dry cargo, wheat and other agricultural products.

According to the flowchart, bulk cargo (grain, operational flowsheet №Н-1.3 and alumina, operational flowsheet №Н-15)) is removed from bilge with grab bucket and loaded to a special bunker (dimensions 7,2 x 7,2 x 2,25 m), which for loading to carriages is provided with loading arms of special fabric (tarpaulin). These arms are placed in hatches on the top of a carriage and infilling level is controlled by an operator.

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Other bulk cargo can be temporarily stowed on specially arranged grounds; these are coal (operational flowsheet №НН-4.1), bauxite and manganese ors (operational flowsheet №НН- 7.2), construction sand, gravel, etc (operational flowsheet № НН-8.1). Figures below show handling of bulks.

Cargo stowage time on the ground is limited and cannot exceed a week; therefore this period is not included in estimation of annual emissions from statically stowed materials.

Figure 3.3.1. Bauxite operations at Berth

Figure 3.3.2. Scrap metal operations at Berth

3.4 Technological Scheme and Capacity of Containerized Cargo Handling The container’s terminal is located at berth 7 and designated for handling of containers, equipment and other heavy cargo. The berth was constructed in 1984 of trestle-like prismatic poles (cross-section 45/45 cm). Total length of the berth is 211 m, operational length - 170 m, design depth - 8,25 m. The terminal can serve maximum 150 m length vessel.

Storage area of the terminal is 16,248 m2. The terminal can accommodate 700 containers at a time if optimally used. The terminal is provided with 3 portal cranes of KONDOR (capacity 40 t) and 260 m length railway blind end. The terminal bounders with 10 m width motor-road

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provided for technological and fire- fighting purposes as well as to communicate to other handling complexes.

Containers and other cargo can be delivered to or dispatched from the terminal on trucks and carriages. Containers are temporarily stowed at the berth, in 2-3 tiers (storage capacity 840 TEU). When turnover is high and the berth’s area is not Figure 3.4.1. Handling of Containers at Berth sufficient, containers are loaded immediately on trucks and delivered to a special storage facility 5-6 km away from the Port.

Workshops are provided to repair and maintain machinery and technological devices and engineer unconventional metal structures.

Figure 3.4.2. Machinery operations

3.5 Technology of Ferry Handling Ferry berth is located in the eastern part of berth 2. Rail-line and motor-road are provided to the berth. Loaded carriage and trucks are placed on a ferry there.

Here should be noted that neither ro-ro nor containerized cargo produce air pollutants. Air emission sources associate with these operations are machinery and locomotives used for operations.

Another ferry berth is number 13, which serves to cargo loaded on trucks

3.6 Other Berths At present berths 11 and 12 are used for the Port’s fleet. In past berth 12 was a passenger’s. It is planned to arrange there terminals for general and dry cargo.

Berths 14 and 15 are under reconstruction. Berth 14 is being prepared for containerized cargo and berth 15 – for wheat. The reconstruction will be accomplished before 2010.

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3.7 Access Canal The access canal is located in the coastal zone, which is significantly affected by the northern branch of River. Investigations have discovered that Rioni delta has been expanded by15-20 m inshore each year. Annual delivery of solids to the undersea slope is 4.0-4.5 mln m3. About third of this accumulates on the southern undersea slope nearby the Port. The delta is developing not only inshore but alongshore as well, what makes the south outflow of Rioni’s northern branch approach the Port promoting increased sedimentation of the nearby slope.

The access canal requires regular dredging to maintain its depth, though its design depth of 13 m can be maintained for short periods. Estimation of annual sedimentation of the canal is difficult. Sedimentation occurs due to alongshore transportation of sediments by streams or storms. Throughout storms alongshore transportation depends on wave energy, direction and duration. Sediments are mainly beachforming. Finer sediments migrate towards the canal. Their diameter is below 0.1 mm. Alongshore transport of solids comprises 500-600 ths m3/y. Volume of solids accumulated in the canal comprises up to 70-120 ths m3/y.

The assess canal consists of two bends and sediment trap. Its total length comprises 1600 m, internal bend – 650 m, external bend – 950. The sediment trap is located at the crossing of the bends.

Annual alongshore migration of sediments is irregular: its 80% occurs in the winter, specifically in November-February. About 70-90 ths m3 of sediments enter the port per single winter month; in stormy years total amount of delivered sediments may reach 1 mln m3. Storms have 11-13-years cyclic character and upcoming pick is forecasted for 2008-2012, when sedimentation of the canal will significantly increased.

The access canal and trap have been regularly dredged for last 20 years. Table 3.7.1 gives volume of dredged material by years.

Table 3.7.1. Volume of Sediments Dredged from Access Life and Trap in 1987-2008

Year Dredged Sediments, ths m3 Dredger

1987 513,6 Cherazmorput 1988 879,4 Cherazmorput 1989 786,9 Cherazmorput 1990 1.385,5 Cherazmorput 1991 957,1 Cherazmorput 1992 1.189,3 Cherazmorput 1993 623,6 Cherazmorput 1994 - - 1995 1.005,7 Cherazmorput 1996 32,1 Chernomortechflot 1997 1.336,3 Chernomortechflot 1998 451,4 Chernomortechflot 1999 - - 2000 961,3 Chernomortechflot 2001 18,3 Megaphlot 2002 262,9 N.Nikoladge 2003 618,9 N.Nikoladge 2004 1.226,1 N.Nikoladge 2005 949,8 N.Nikoladge 2006 1.247,1 N.Nikoladge, Kiburski

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2007 1.364,6 N.Nikoladge, Skadovsk 2008 583,0 N.Nikoladge Total 16 392,9 Average Annual 819,6

3.8 Brief Description of Measures Executed to Reduce Environmental Impact of Port’s Operations In resent years certain measures have been carried out to reduce environmental impact due to the Port’s operations. In this context important are activities executed at berths 1 and 2.

Throughout employment of the berths were damaged wastewater drainage and treatment systems. Besides, ground was polluted with petroleum hydrocarbons. Thus, oil polluted runoffs from this ground contaminated marine water as fell in internal water area of the Port.

In 2006 the Port’s management invited a contractor, which executed an ecological audit, determined ground pollution level, pollution depth and volume of ground to be replaced. On the basis of the ecological audit was prepared a project for rehabilitation of the berths. The project included: • Removal and treatment of polluted ground; • Dismantling of tankcar handling facility, wastewater sewage system and old treatment facilities; • Delivery of new ground and vertical development of the area; • Restoration of the berths’ face walls; • Construction of a new tankcar handling facility; • Construction of sewage system for industrial wastewater and storm waters; • Construction of wastewater treatment facility and in-depth discharge system for treated water.

Major part of the works has been accomplished by the given audit. It should be noted that oil polluted ground was taken out of the Port and bioremediated.

During the audit has been constructed a modern wastewater treatment facility to treat and neutralize wastewater produced at berths 1 and 2. Treated water will be discharged north-west to berth 1, via in-depth discharge system.

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3.9 Description of Auxiliary Infrastructure 3.9.1 Storage Facilities of Berths

Characteristics of the berths’ storage facilities is given in Table 3.9.1.1. Table 3.9.1.1. Among Them: Land Area, Description Total Outdoor Indoor ha Ferry complex 10 000 10 000 - 1,0 Berth 4 6470 6470 (200*30) - 0,647 6120(200*30) - Berth 5 9777 0,977 3657 back 8192(200*30) - Berth 6 11841 1,29 3649 back Berth 7 16248 16248 - Berth 8 6606 6606(200*30) - 0,2756 Berth 9 2294 2294 (150*20) - 0,45 9852, including Berth 10 12592 2740(150*20) 7260-№ 5 storage, 0,37 2592 - hard Total 75828 65976 9852 5,01

3.9.2 Potable, Domestic and Technical Water Supply Systems Service water is used for industrial and fire-fighting purposes, washing of sites and watering of plants. Industrial water consumption is required for the following: • Tank flushing; • Flushing of tankcar handling facilities; • Flushing of manifolds; • Flushing of floors of industrial facilities; • Stream production in the boiler and washing of filters; • Hydraulic testing of pipes and devices; • Cooling systems of pumps and tanks; • Oil traps. With use of industrial water flushed are berth having hard top, namely to berths №1, 2, 7, 8, 9, 10, 11 and 12. The territories of berths №13, 14 and 15 will be cleaned similarly after reconstruction works are finished.

The Port’s grounds are considered to be cleaned after handling of certain cargo, when different cargo is to be delivered. According to available data, the berths are flushed and cleaned one a week in average. Flushing of 1 m2 ground consumes 1,5 l of water in average (0,0015 m3). Table 3.9.2.1 gives water consumption for flushing by each berth.

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Table 3.9.2.1. Water Total Water Berth Catchment Area Consumption, Consumption, № of Berth, (m2) (m3) m3/y 1 5280 7,92 411,84 2 4839 7,2585 377,442 7 24265 36,3975 1892,67 8 7555 11,3325 589,29 9 2860 4,29 223,08 10 3538 5,307 275,964 11 958 1,437 74,724 12 2750 4,125 214,5 13 1300 1,95 101,4 14 3542 5,313 276,276 15 2139 3,2085 166,842 Total 59026 88,539 4604,028

3.9.3 Industrial/Stormwater Sewage Systems Wastewater Treatment Facilities The Poti Sea Port produces the following wastewaters: ƒ Industrial (flush) wastewater; ƒ Storm water; ƒ Domestic and sewage wastewater; ƒ Bilge water; ƒ Wastewater produced by the oil terminal – Channel Energy (Poti) Ltd has separate treatment facilities for both the phases and wastewater discharge standards are agreed to the Environmental Ministry of Georgia. The reconstruction of berths 1 and 2 includes installation of 30 l/sec capacity wastewater treatment facility for them. According to the technical documentation, the treatment unit is designated to treat wastewater polluted with particulates and oil products and produced by industrial grounds, refueling stations, oil yards and other areas. Reconstruction works will be finished before 2010.

3.9.4 Industrial (Flush) Wastewater and Storm Water From the berths industrial and runoff waste water flows in the Port’s water area, at nine different points. Besides, for reconstruction sites, namely flush and runoff waters from berths №14 and 15 is envisaged to construct a collector system (before 2010); because of that calculations are made for these 2 points also. Geographic coordinates of the waste water discharge points are given in Table 3.9.4.1, and their location – in Figure 3.9.4.1.

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Table 3.9.4.1. No of Coordinates of Discharge Point Discharge Location (UTM WGS-84) Point X Y 1. North-west to berth №1 719024 4670470 2. South-west to berth №3 719388 4670397 3. Between berths №3 and 4 719613 4670485 4. Between berths №5 and 6 719945 4670473 5. South-west to berth №7 720146 4670266 6. At berth №10 719653 4670270 7. At berth №11 719426 4670277 8. At berth №12 719236 4670150 9. At berth №13 719083 4670089 10. At berth №14 (planned) 719230 4670052 11. At berth №14 (planned) 719331 4669976

Considering 20% leakage and vaporization losses, only 80% of water used to flush certain berth is taken for volume of flush waste water. Based on the available data for each discharge point estimated is: ƒ Annual volume of industrial (flush) waste water; ƒ Annual volume of runoff waste water; ƒ Hourly maximum flow of runoff waste water; ƒ Total annual average volume of waste water;

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Page 17 of 38 Figure 3.9.4.1. Topographical map of Poti Sea Port showing water discharge points

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Table 3.9.4.2. Wastewater Discharge by Discharge Points

Top Cover Volume of Runoff Total Volume of Waste Total Volume of Industrial Volume of

№ Average Annual Hourly Maximum Factor for Water Water Name of Catchment Water for Flushing Flush Waste Precipitation Precipitation Catchment Catchment Area Area of Catchment Area Water

Point 3 3 (mm) (mm) Area (ha) (m /y) (m /y) 3 3 3 3 (K) (m /y) (m /h) (m /y) (m /h) Water Discharge Water Discharge

A B C D E F G H I j K L 1. Berths №1 and 2 1,0119 789,282 631,426 1661 78 0,24 4 033,84 189,428 4665,26 189,428 2. Berth №3 0,314 – – 1661 78 0,064 333,79 15,675 333,79 15,675 3. Berth №4 0,2156 – – 1661 78 0,064 229,19 10,763 229,19 10,763 4. Berths №5 and 6 0,9944 – – 1661 78 0,064 1057,09 49,640 1057,09 49,640 5. Berth №7 2,4265 1892,67 1514,136 1661 78 0,24 9673,0 454,241 11187,1 454,241 Berths №8, 9 and 6. 1,3953 1088,334 870,667 1661 78 0,24 5562,22 261,2 6432,89 261,2 10 7. Berth №11 0,0958 74,724 59,779 1661 78 0,24 381,90 17,934 441,68 17,934 8. Berth №12 0,275 214,5 171,6 1661 78 0,24 1096,26 51,48 1267,86 51,48 9. Berth №13 0,13 101,4 81,12 1661 78 0,24 518,23 24,336 599,35 24,336 10. Berth №14 0,3542 276,276 221,021 1661 78 0,24 1411,98 66,306 1633,0 66,306 11. Berth №15 0,2139 166,842 133,474 1661 78 0,24 852,69 40,042 986,16 40,042 Total: 7,4266 4604,028 3683,223 25146 1180,895 28830,18 1180,895

Explanatory E = D – (D x 0,2) Note: I = 10 x C x F x H J = 10 x C x G x H K = E + I L = J

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3.9.5 Domestic and Sewage Waste Water For average annual volume of liquid waste generated at Poti Port is taken 80% of consumed potable- domestic water, or

87513 x 0,80 = 70010 m3

Domestic and sewage waste water from the Port’s area is discharged to the sewage collector of Poti City on the basis of relevant contract made to Poti Tskhalkanali Ltd.

3.9.6 Domestic, Sewage and Bilge Waste Water from Ships The Port’s management states that average annual amount of domestic/sewage wastewater and bilge water received from vessels comprises 750,0 – 800,0 m3/y and 3300-3400 m3/y respectively.

Wastewater of calling ships is pumped to Captain Tskhadaia, ship owned by the Port. Domestic and sewage wastewater is discharged to sewage collector of Poti City.

Treatment of bilge water is an issue to be solved. The Port has not relevant treatment facility. Currently bilge water is collected in the reservoir, at the Port. The Port plans to install bilge water treatment unit and has already chosen a compact treatment device of 10 m3/hr capacity for this purpose. It will be delivered and installed in the beginning of 2010.

3.9.7 Waste Water Treatment According to the design documentation for reconstruction of berths №1 and №2, a waste water treatment unit of Lama type, 30 m/l capacity, is envisaged to be installed treat and neutralize waste water from these areas. The unit is intended to treat waste water generated by process grounds, refilling stations, oil storages and other grounds, which are contaminated with particulate matter and petroleum products. The facility provides treatment of industrial/runoff waste water to standard parameters. After this, water can be discharged directly to a water body. Qualitative indicators of treated water are given in Table 3.9.7.1.

Table 3.9.7.1. Qualitative Indicators of Treated Water Qualitative Indicators of Treated Wastewater Value Particulates, mg/l 10 Color, particulates 0 Odor Not over 2 balls BOD, (t 20oC), mg/l 6 COD, mg/l 30 Content of petroleum products, not over: 0,3 Total iron, not exceeding 0,1

Due to treatment efficiency of the treatment facility, treated waste water can be discharged superficially, but the design documentation devises arranging a deep discharge, what considerably improves dilution of waste water in marine water. On the end of the underlying pipe will be installed a spraying system.

For waste water of the other berths arranged are simple settlers. After passing them, waste water is released superficially, in the Port’s internal water area.

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3.10 Wood Processing Work Wood processing workshop is arranged in a shed of 36 x 12 x 6,45 m dimension. The workshop contains a saw (rotary), marking gage, planer, grooving machine, grinder, lathe and drill. The workshop is mainly intended for working sawed wooden material and its average annual design capacity is 700-800m3. The workshop mainly produces windows, doors, floor boards, floor molding and cupboards, as demanded by the Port.

To prevent air contamination are arranged 500 mm holes for natural ventilation. Besides, there is provided an aspiration device with cyclone collector. From the shed, waste is removed by vehicle.

In the wood-working shop process flow includes: • Passing of initially sawn boards through saw machine; • Working of sawn boards with planer machine; • Working of planed boards with marking gage; • Working of boards with grooving machine; • Passing boards through saw and grinding machines.

The wood–working shop has dry dust arrester equipment (cyclone - ЛИОТ-2).

3.11 Machine Shop In the machine shop are installed various metal working machines. Table 3.11.1 gives characteristics for some of them. Machine shop also accommodates welding site, where standard electrodes are used. Annual expenditure of electrodes is 2400 kg/y.

Table 3.11.1. Name Number Capacity, kW Vertical drilling machine 5 1 ∻7 Metal-cutting machine (guillotine) 3 10 ∻12,5 Bending press 1 4,5 Pipe bending press 1 7,5 Grinding machine 1 3,5 Double-end grinding machine 2 2,2 (diameter – 350 mm)

3.12 Accumulator Room In the accumulator room are charged starter accumulators and battery jars are added sulphic acid when required. According to the Port’s information 46 kg of sulphic acid was consumed in 2007. Isolated place is allocated to keep sulphic acid, where it is stored in a protected metal cabinet.

Old and damaged accumulators, 30-35 units per annum in average are taken away by the licensed contractor. No old or damaged accumulators were kept in the room during the audit.

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Page 21 of 38 3.13 Generator’s Site For emergency power supply the Port is provided with 4 diesel-generators 4-26ДГ-43ТО. Three of them are owned by the Port and one – by its lessee. Average capacity of one generator is 1265 kW, estimated fuel consumption – 204 +10,2.

3.14 Waste Management Throughout the Port’s operation produced is domestic and industrial waste. Domestic waste is collected, separated and kept in the special stationary containers. The Port contracted relevant municipal services of Poti City to dispose domestic waste on the domestic waste landfill of Poti City

Current operations of the Port generate the following wastes: • Residues of bulk cargo; • Residues of chemicals; • Scrap metal; • Resin and polymeric waste; • Asbestos containing waste; • Waste oil; • Liquid waste polluted with petroleum hydrocarbons; • Solid waste polluted with petroleum hydrocarbons;

Liquid waste polluted with petroleum hydrocarbons is presented by: • Silt and sediments accumulated in oil traps; • Waste oils and lubricants;

The reconstruction project of berths 1 and 2 envisages arrangement of industrial wastewater/stormwater collector system and treatment facility to ensure adequate management of oily wastewater. Oily residues accumulated throughout treatment will be kept in a special tank and further disposed by a licensed contractor. The reconstruction is planned to be finished before 2010.

Solid waste polluted with petroleum hydrocarbons can be: • Cloths, cleaning materials and absorbers polluted with oil; • Oily overalls which cannot be washed or cleaned.

Solid waste polluted with oil is collected in specially labeled containers and kept in the protected facility. There waste is packed and labeled to be adequately disposed off. The facility has a concrete floor to avoid pollution of soil and ground water.

Chemical waste: • Liquids of accumulators; • Out-of-date fire-fighting liquids.

Old and damaged accumulators are kept in a separate room and further removed by a licensed contractor. Accumulators are not disintegrated or empted within the Port. About 30-35 old accumulators accumulate per year in average.

Recently the Port wholly replaced old fire extinguishers with new. Old extinguishers where removed by the supplier of new extinguishers. Fire fighting service is provided with neutralizers of fire- extinguishing liquids so as to treat them in situ whenever required.

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Page 22 of 38 The Port has not a chemical laboratory, so no chemical agents accumulate there.

Scrap Metal: • Old metal pipes and reinforcement; • Old parts of vehicle and machinery.

A special site is allocated to keep ferrous and non-ferrous scrap metal, which is supplied to scrap metal collecting services.

Resin and plastic waste: • Old hoses used for tanker handling; • Plastic goods; • Tires.

The Port registers resin and polymeric materials and keeps them in special facilities. Associated waste is removed by a licensed contractor.

Asbestos containing waste: No asbestos containing materials were found throughout the audit.

Waste Oils: Waste oils of machinery are collected in special lidded containers and together with oil products trapped by treatment facilities are disposed of by a licensed contractor.

In 2009 the Port has prepared Waste Management Plan which in August was submitted for approval to the Environmental Ministry of Georgia.

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3.15 Organization Chart of Corporation

General Director (01)

Administration of Advisor to CEO on

General Director Political & Social Issues (27) (07) Administrative links

Functional Links

Advisor to CEO on Assistant to CEO Advisor Operations (12) on Political & Social Higher management Issues (31)

Operations General Manager (GM) Senior Technical Financial General Commercial General Legal & HR General Senior HSSE Representative in Quality Manager Manager (GM) Manager (GM) Manager (GM) Manager (03) (08) (05) (02) (04) (06)

Assistant to GM Assistant to SM Deputy Assistant to GM Assistant to GM Assistant to SM (45) Financial GM (52) (38) (16) (44)

Quality ( 11)

Department (09) Central Mechanical Research & Central Control Advisor to GM Accountant HR Security Officer Tower (10) (51) Workshop Development Dept (24) Dept (28) (40) Department (13)

(18)

Container Rail Ferry Technology & Chancellery Terminal (57) Coordination Terminal (59) Mechanization Dept Planning Watchmen Dept Center (15) (46)

Dept (20)

(34) Dry Dock Southern Area Legal dept (56) (50) Light workshop Marketing Dept Ecology Dept Analyze & (17) (41) (21) (19)

Construction Control Dept Oil terminal

Projects Dept (26) (23) Training Centre (58) Energy Dept Safety Dept Public Relations (25) (36) (14) Control & Port Fleet Reconstruction & Dept (30) Revision Dept (33) Development Railway Dept (22) Fire­Fighting Dept (42) (35) Department Communication, Hydro Technical & Purchase Dept (32) IT, radio Garage Engineering Dept. (39) navigation (49) (43) department (37)

Construction Cleaning Dept Maintenance area (29) (47) Lessees

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3.16 Environmental Department of Corporation In the structure of Poti Sea Port Corp is incorporated an ecological department (7 employees). Based on the main statements: 1. Ecology Department presents a separate structural sub-division, subordinated to the Senior HSSE Manager; 2. Ecology Department is managed by Head of Ecology Department appointed by General Director upon the recommendation of the Senior HSSE Manager; 3. Activities of the sub-division are based on the valid national environmetnal and labor laws, international conventions and standard documents; 4. The Department performs its operations in close cooperation to the other sub-divisions of the Port; 5. Structure and staff of the Department is approved by General Director.

Function and Responsibilities: 1. Continuously improve organizational management in order to ensure protection and preservation of environment at a level safe (non-hazardous) to human health, and fulfill decisions of the state government; 2. Introduce best environmentally friendly practices and technologies; 3. Develop and implement organizational-technical measures for environmental protection; 4. Provide environmental monitoring to operations of every industrial sub-divisions; 5. Investigate infringements of environmental laws; 6. Check the Port’s restricted area and water area for compatibility to environmental requirements; 7. Control operations of technique providing environmental protection; 8. Control whether Port’s fleet meet environmental requirements; 9. Control reception of contaminated water and dry waste from ships; 10. Carry out radiation control of cargo and ships entered and leaving the Port, as stated by the law on Nuclear and Radiation Safety; 11. Perform radiation monitoring on the Port’s restricted area; 12. Control the Port’s lessees regarding environmental protection issues.

Organization Chart of Ecology Service

Ecology Service Head (01)

Environment Environment Radiological group

Protection Senior Protection Engineer inspector Inspector

Engineer (04) (05) (02) (03)

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Page 25 of 38 4 Natural Resources Used for Port’s Operations

The Port uses natural resources as given in Table 4.1.

Table 4.1. Used Natural Resources № Description Amount 1 Land, ha 51,23 2 Potable and domestic water, m3/y 87 513 3 Industrial water, m3/y 4 674

5 Overall Description of Port’s Area Poti is situated on Kolkheti lowland, on the shore of the Black Sea, at the River Rioni estuary. The height of City territory from the sea level does not exceed 0.08 m, and in places it is even lower sea level. The coastal line in Poti administration limits is 12 km. The city territory is crossed by the River Rioni and small rivers the Kaparchina and Black Stream. The city is bordered with the , natural and artificial reservoirs and marshes. Total area of Poti is 6580 ha and the distance from the capital is 340 km. Poti Sea Port is located within administrative area of Poti City. From all sides but north the Port adjoins resided zones so that the Port may be expanded only northwards. The Port is protected by breakwater which starts at the south edge.

5.1 Quality of Sea Water Quality of sea water has not been observed since 1990. Internal water area of the Port is quarterly monitored by Channel Energy (Poti) Ltd which sub-contracts Scientific-Research Firm Gamma for laboratory analysis. Results of the laboratory analysis for 2007-2008 are given in Table 5.1.1.

In the frames of the given audit experts of Scientific Research Firm Gamma took 7 samples of sea water and 6 samples of bottom sediments from different points of the Port’s internal water area. The sea water was studied for total petroleum hydrocarbons (TPH1), particulates, BOD, pH and organoleptic indicators; bottom sediments – for TPH and toxic metals. Outputs of the examination area given in Table 5.1.2 and Table 5.1.3.

1 TPH in all samples was determined via air-gas chromatographic method and standard methodologies TNRCC method 1006 - Total Petroleum Hydrocarbons, 10/10/2000, US EPA Method 418.1

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Table 5.1.1. Results of Quarterly Monitoring of Sea Water Implemented by Channel Energy (Poti) Ltd

Examination Results Determinand 2007 2008 I Quarter II Quarter III Quarter IV Quarter I Quarter II Quarter III Quarter IV Quarter pH 8.25 8.20 7.85 8.10 8.15 8.10 7.80 8.40 Electric conductivity (sim/m) 2.2750 2.3660 2.4440 2.4570 2.2360 2.0670 2.5870 2.5740 BOD 5 (mg/l) 3.5 5.5 5.2 4.7 5.6 13.7 5.4 13.0 Particulates (mg/l) 11,7 20,7 60,2 68,0 29,0 81,0 12,0 9,0

Dissolved O2 (mg/l) 3.98 3.32 3.36 3.05 4.32 3.37 2.64 6.0

NH4 (mg/l) <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02

NO2 (mg/l) <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02

NO3 (mg/l) 12.0 11.0 10.0 9.0 22.0 18.0 18.0 20.0 Total P (mg/l) <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 Total petroleum hydrocarbons 1.84 0.74 <0.04 0.6 <0.04 <0.04 <0.04 <0.04 TPH (mg/l) Aromatic volatile hydrocarbons

BTEX (mg/l) Benzene <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 Toluene <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 Ethylbenzene <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 MPO - xylene <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01

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Table 5.1.2. Examination of Sea Water for Audit Coordinates of Sampling Point Determinand Sample Lab № Description (UTM WGS-84) BOD Particulat TPH № pH Colour Odour X Y (mg/l) es (g/l) (mg/l)

Port’s internal water area. At the 1. 717-W 719607 4670323 7,50 6,3 0,0122 colourless odourless boundary of berths 9 and10 <0.04

Port’s internal water area. At the 1. 718-W 720104 4670260 7,95 5,4 0,0122 colourless odourless boundary of berths 7 and 8 0.45

Port’s internal water area. At the 2. 719-W 720000 4670454 7,95 3,4 0,0123 colourless odourless boundary of berths 5 and 6 0.40

Port’s internal water area. At the 3. 720-W 719601 4670443 7,30 6,0 0,0104 colourless odourless boundary of berths 3 and 4 0.540

Port’s internal water area. At 4. 721-W 719340 4670388 7,95 6,0 0,011 colourless faint odour ferryboat berth 0.60

Port’s internal water area. Corner 5. 722-W 711897 4670423 8,00 6,3 0,0097 colourless odourless of berth №1 <0.04

Port’s internal water area. 6. 723-W 718991 4670203 8,00 5,2 0,0072 colourless odourless Nearby berth 12 <0.04

MPC, mg/l 6-9 <=6,0 - colourless odourless 0,3

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Table 5.1.2. Examination of Bottom Sediment for Audit Coordinates of Zn Cu Ni Cd Pb As TPH, Sampling Point Sampling Point ppm ppm ppm ppm ppm ppm ppm X=0719205 Nearby berth 12 95 55 86 2.5 <25 10.4 67.3 Y=4670163 X=0719094 Nearby berth 12 125 65 80 3.5 42.5 10.4 2168.6 Y=4670160 X=0719096 Nearby berth 14 120 60 106 5.0 25.0 11.0 460.2 Y=4670056 X=0719229 Nearby berth 14 120 70 91.6 4.0 25.0 11.4 186.3 Y=4670048 X=0719307 Nearby berth 15 112 62 85 3,2 23,5 10,5 356,0 Y=4669922 MPC, mg/l 23,0 3,0 4,0 2,0 32,0 10,0 1000,0

The Tables show that concentration of TPH in increased in the marine water samples what should be due to absence of adequate treatment systems for industrial wastewater and storm water. Storm waters enter the sea untreated imposing risk of pollution with particulates (including residues of bulk cargo) and petroleum hydrocarbons. To prevent this necessary is to arrange storm water drainage system connected to the municipal collector; as alternative, a treatment facility can be installed at all points of water discharge to the sea.

Concentrations of zinc, copper, arsenic and nickel are increased in the samples of bottom sediments; besides, the samples from berth 12 are polluted with TPH.

Quality of sea water degrades due to dredging of the access canal because this increases turbidity. Observation showed that turbidity is highly excessive within 200-250 m radius from the dredger, further it starts falling and reaches background value in 500-600 m.

5.2 Quality of Soil and Ground The Port’s operations may cause soil and ground pollution due to: • Violation of waste management rules and procedures; • Emergency spills of oil products and other chemical cargo; • Breakdown of sewage systems and treatment facilities.

Recently the Port’s management has improved waste management practices: special containers are delivered for waste collection, contracted are entities licensed for waste disposal, etc. Though some drawbacks still present: waste is not segregated, waste containers are not properly labeled, grounds to accommodate containers are not arranged, etc. Therefore, there is certain risk to pollute soil and ground.

5.3 Seismic Conditions The area is located in 8 point seismic zone (according to MSK-64 scale). Seismicity of the area shall be envisaged in any building and reconstruction projects (see construction norms and rules on Construction in Seismic Regions).

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Seismic data prove modern activity of the study area. Its intensity depends on intensity of separate units forming Georgian block. Figure 5.2.1.

5.4 Quality of Ambient Air 5.4.1 Air Pollution Currently no stationary air observation unit operates in Poti City or in the Port. Therefore, impossible is to obtain information about background pollution of the ambient air for Poti City.

Here should be noted that Channel Energy Ltd monitors air quality at the oil terminal with support of Gamma. Outputs of air quality analysis for 2008 are given Table 5.3.1.1.

Table 5.3.1.1. Air Quality Analysis for Oil Terminal of Channel Energy Ltd Compound Quarter mg/m3 I II III IV

SO2 0.11 0.11 0.11 0.10 NO2 0.03 0.03 0.04 0.03 CO 1.5 1.6 1.5 1.6 Petroleum 0.6 0.5 0.5 0.5 hydrocarbons

As the table shows, concentrations of the measured pollutants are within the permissible standards.

The Port’s operations cause air emission of combustion products and dust. When interviewed the neighboring population mentioned dust nuisance due to handling of bulks. This may occur if technology of the process is not followed. However, population had not delivered any official complaints to the administration of Poti Port in 2008-2009.

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Modeling of air dissipation of pollutants does not show that their ground-level concentrations might surpass established standards. The Port’s management shall ensure adherence to technological regime when handling bulk cargo.

5.4.2 Noise Propagation To avoid noise nuisance during day-time and night an acoustic background sanitary standards on Noise at Work Places, Residential and Public Buildings and Residential Territories (SRS 2.2.4/2.1.8 003/004-01, Georgian Information Bulletin №90, 24.08.2001, paragraph 647) is accepted in Georgia. According to this standard document, noise level of 55 dBA and 45 dBA are taken as limit at the border of residential area respectively for day-time (7:00 am – 7:00 pm) and night hours (7:00 pm – 7:00 am); permissible noise level within industrial area is 70 dBA.

Background noise of the study area was measured instrumentally. A noise and vibration measuring instrument ИВШ-1 was used for this (the instrument has passed metrological testing). Measurements took place in daytime (from 11 to 18 hr), simultaneously with cargo operations. Outputs are given in Table 6.4.2.1.

Table 6.4.2.1. Equivalent Noise № Measurement Point Level, dBA 1 Agmashenebeli St, nearby the Port’s administrative building 62,5 2 Agmashenebeli St, nearby Hotel Anchor 51 3 Agmashenebeli St, nearby Phase II of the oil terminal 46 4 Nearby berth 7 44 5 Nearby berth 10 47 6 Nearby berth 14 52,5 As shown in the table, noise level does not significantly exceed established standards. High noise levels at the administrative building and the hotel should be cumulative result of the Port’s operations and intensive traffic.

5.4.3 Biological Environment and Sensitive Areas The Sea Port is located nearby Kolkheti Wetlands, in the western part of Kolkheti Lowlands, at the Black Sea side. The wetlands are known for biodiversity. Major part of the wetlands is occupied by human, what considerably reduced primary cenosis. Wetland forests, mainly alder-groves have important role due to their rich biodiversity and endemism.

Port is situated near southern border of Nabada section of . Terrestrial part of the rehabilitation zone and managed marine nature zone are also located in this section. The boundaries of the managed marine nature zone extend to last section of the right border of the Rioni delta.

Port is located in vicinity to territories under Ramsar convention (wintering areas of migratory birds). According to Ramsar convention, Rioni delta area and Kolkheti national park are avowed as strictly protected zones.

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Territories near port are not notable for biodiversity, only cultivated vegetation and synanthropic animal species are observed.

Since Port influence zone is not notable for biodiversity and existing species are synanthropic, no significant impact is expected from port ongoing operations.

Some impact is expected during migratory fowl’s migration process, due to lighting of certain operation areas. In order to minimize the impact, special lamps are mounted on high structures, while amount of lamps is kept maximally low.

Certain negative impact on sea bio environment is expected during port entrance channel deepening works. i.e. excessive turbidity of sea water caused by deepening works. However excessive turbidity is expected in range of 200-250m. from channel borders and will not have a major impact on natural turbidity of Rioni river.

Impact on sea organisms caused by the noise form machinery used during deepening works is slightly significant. Underwater noise is caused by the operation of suction machine. Considering that 1-2 suction machines are operating annually, the impact can be classified as heavy.

Another source of noise generation caused by port operation is movement of ships. According to literature sources fish and cetacean often change their behavior due to noise impact and avoid areas of noise generation. Noise impact is a significant factor for sea mammals like dolphins, since these species use sound signals in order to orientate, communicate and find food. Therefore changes in acoustic environment can have adverse impact on these animals

Impact on fish fauna is aggravated by the fact that port entrance channel is located on northern side in vicinity to Rioni delta and fish migration routes. Movement of ships toward the entrance channel hinders the intensity of fish movement to the river

5.4.4 Protected Areas Distance between the Port and the protected area prevents any impact on the later. Only impact may occur if birds from the protected areas enter the Port.

5.5 Waste Management As mentioned in paragraph 3.14, domestic and industrial waste is generated due the Port’s operations. Volume of domestic waste depends on number of personnel. As the Port employs some 1200 people and 0,7 m3 solid waste produced per man per annum, total volume of solid domestic waste should comprise 1200 X 0,7 = 840 m3/y for the Port. This waste is removed and landfilled by a licensed contractor.

The Port’s operations may produce the following wastes: • Liquid waste polluted with petroleum hydrocarbons; • Solid waste polluted with petroleum hydrocarbons; • Waste oil;

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• Residues of bulk cargo; • Residues of chemicals; • Scrap metal; • Resin and polymeric waste;

Majority of these wastes is hazardous and shall be specifically managed.

Liquid waste (wastewater) polluted with petroleum hydrocarbons (produced by berths 1 and 2, 4666 m3/y) – a treatment facility (oil trap) is planned to be installed for it. Trapped oil will be delivered to the oil terminal and mixed with masut after dewatering.

A treatment facility is designed for bilge and ballast water. 10 m3/hr treatment unit will be installed for this purpose in beginning of 2010.

Solid waste polluted with petroleum hydrocarbons (oily cloths and overalls, cleaning materials, absorbents) shall be collected in special containers and kept in the specially allocated facilities. In November-December 2009 the Port will deliver properly labeled containers for this purpose, as considered in the Waste Management Plan.

The audit found the building accommodated for hazardous waste protected; its floor is concreted. Waste is put on shelves. According to records, volume of hazardous waste generated per annum is the following: • Old and damaged accumulators - 30-35 units; • Oily solid waste - 200-239 kg; • Waste oil - 250-300 kg; • Oil filters - 130-140 units; • Old tires - 150-160 units; • Resin and polymeric waste - 500-550 kg.

Part of hazardous waste such are accumulators, tires, waste oil, resin and polymeric waste is removed from the Port by licensed contractors. A licensed contractor shall be found for removal and neutralization of oily solid waste and oil filters.

Besides, it should be noted that the Port does not employs separated waste collection method. This requires: • Delivery of properly labeled special containers of relevant colour. • Arrangement of a special container’s grounds, provided with water supply and wastewater collector; the area shall have a solid cover and fencing. • Periodical training and testing of personnel responsible for water management.

As already mentioned segregated waste collection method will be introduced in IV quarter 2009, as stated in the Port’s Waste Management Plan. For this adequately labeled and coloured containers will be delivered in November-December 2009.

5.6 Health and Safety Throughout the Port’s operations risks associated with occupational health are: • Impact of oil products/other chemicals and inorganic dust emitted in the ambient air due to the berths’ operations;

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• Industrial traumas; • Potential to be severely or chronically poisoned; • Accidents, etc. During the audit was discovered that the Port’s administration undertakes certain measures to reduce negative health effects; these include: • pre-employment and periodic medical examination of staff; • provision of personnel working at industrial sites with personal protection equipment and overalls. • pre-employment and periodic occupation safety and environmental protection trainings are organized for staff. Besides, personnel are instructed prior they start fulfilling their tasks. • The Port operates a medical room which delivers first medical aid, registers occupational traumas, plans preventive measures and supervises their implementation.

Number of occupational traumas and professional disease has been significantly reduced during last years due to implementation of preventive measures.

The Port’s administration plans to reduce health risks of neighboring population via: • Regular control of concentration of air borne pollutants at the boundary of the settlements occurring within the Port’s impact zone; • Regulation of cargo operations on the basis of air quality monitoring in the resided zones.

5.7 Employment and Economic Welfare Poti Sea Port has been operating over 100 years. The company mainly occupies population of Poti City and neighboring settlements, over 1000 persons in total. Therefore, this enterprise plays an important role in employment of local population and improving their socio-economic conditions.

5.7.1 Traffic Transport infrastructure is well-developed in Poti City, what is presented by wide network of motor- and railways.

For transshipment of freights the Port mainly uses railway and sea transport. Only small portion of oil products, containers or general cargo is transported on trucks. But this significantly impacts traffic of Poti. To improve the situation required is a plan to reduce transportation through residential areas.

5.7.2 Cultural Heritage No archaeological or cultural monuments were identified within the Port’s impact zone.

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6 Impact of Port’s Operations and Mitigation Measures Table 6.1.1 gives types of potential impact to natural and social environment what may occur due to the Port’s operations. Tables 6.1.2 gives proposed mitigation measures. Table 6.1.1. Description of Technological Operation Impact Receiving of oil products at the tankcar • Air emission of pollutants; handling facility and pumping to tanks in • Propagation of noise and vibration; the tankyard • Propagation of odor; • Generation of liquid and solid waste; • Risk of emergency oil spills; • Risk of soil and groundwater pollution. Receiving of oil products from tankers • Air emission of pollutants; and pumping to tanks in the tankyard • Propagation of noise and vibration; • Propagation of odor; • Generation of liquid and solid waste; • Risk of emergency oil spills; • Risk of soil and groundwater pollution; • Risk of marine water pollution. Loading of oil products and liquid • Air emission of pollutants; chemicals to tankers and tankcars • Propagation of noise and vibration; • Propagation of odor; • Generation of liquid and solid waste; • Risk of emergency spills of chemicals; • Risk of soil and groundwater pollution; • Risk of marine water pollution. Operations of auxiliary infrastructure • Air propagation of combustion products, welding aerosols and (boiler, machine and wood-processing noise; shops, generator, etc) • Generation of liquid and solid waste; • Risk of emergency oil spills; • Risk of soil and groundwater pollution Bulk cargo operations • Air propagation of combustion products, dust and noise; • Risk of ground- and surface water pollution; • Solid waste; • Risk to polluting internal water area of the Port. Employment of container’s terminal • Air propagation of combustion products, dust and noise; • Risk to polluting internal water area of the Port. • Risk of soil and groundwater pollution; Employment of ferry berth • Air propagation of combustion products, dust and noise; • Risk to polluting internal water area of the Port. • Risk of soil and groundwater pollution; Dredging of the access canal • Air propagation of combustion products, dust and noise; • Impact to marine life; • Degradation of marine water; • Impact to dynamics of coastal zone. Workplaces delivered due to the port’s • Positive impact operations

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Table 6.1.1. Potential Impact Proposed Mitigation Improvement of environmental • Development of Occupational Safety, Safety, Health Care and Environmental Management Plans; Agree management these plans to the authorized state bodies. • Development of mitigation measures for the Port’s operation for 2009 and prospective measures for 2009- 2015 • Preparation of environmental monitoring plan for current operations of the Port and agree the plan to authorized state body. • Development of emergency response plan (including response on accidental oil spill) and agree the plan to authorized state body. • Ensuring of implementation of waste management practices as recommended by the waste management plan Spread of pollutants in ambient air • Ensure pre-venting of tanker’s tanks; • Optimize combustion in boilers to reduce concentration of pollutants in exhaust gases. • Provide daily maintenance check to the Port’s machinery to ensure their safety and good technical condition. • Strictly adhere to technological regalements established for bulk cargo; sprinkle surface of bulk cargoes when weather is unfavorable. Impact on aquatic environment • Complete reconstruction of berths 1 and 2 before 2010; arrange wastewater treatment facilities there, with in-depth discharge point. • Complete reconstruction of berths 13 and 14 before 2010; arrange surface runoff drainage system and sedimentation well for treatment facilities. • Ensure proper operation of surface runoff drainage and sewage systems, oil trap and water treatment facilities. • Develop and implement reconstruction project for surface runoff drainage system for other berths of the Port in 2010-2011. Each water discharge point shall be provided with local treatment facility. • Control quality of discharged water to ensure efficiency of treatment facilities. • Monitor water quality in the Port’s internal water area (particulates, BOD, TPH) Soil and ground water pollution risks • Ensure proper operation of surface runoff drainage and sewage systems • Regular supervision of waste management practices Risk to spill chemicals/oil products in • Adhere to safety requirements throughout handling operations. emergencies • Ensure good technical condition and tightness of equipment. • Ensure preparedness of technical equipment and personnel to response oil spill. • Permanently update and upgrade emergency response plan • Arrangement and proper operation of spill containment and collection system. • Treatment of oily water before discharge to surface water body.

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• Via contractor company, ensure preparedness of equipment and personnel required for spills of category 2 and 3 Generation of liquid and solid waste • Waste separation method shall be introduced. For this all sites shall be equipped with required amount of adequately labeled and tightly leaded containers. • Waste stowing sites shall be protected against wind and storm waters; special ground shall be arranged for that. • Generation and management of oily liquid waste shall be monitored. • Special facilities shall be allocated to collect oil residues, used oils and oily waste, or other hazardous waste. Waste shall be removed from the Port and permanently disposed of by a licensed contractor. • Liquid chemical waste shall be neutralized before discharge to surface water body. • Annual training of personnel regarding waste management procedures. Safety risks to population • The Port’s administration shall limit utilization of roads passing through settlements. • The Port’s administration is responsible to regularly carry out risks assessment on site in order to identify specific risk-factors hazardous to population and properly manage them. • To reduce disturbance due to the Port’s lighting system and associated depth of birds shall be carried out the following measures: Impact on wildlife o High structures shall be provided with special lights, to reduce loss of birds. o Illumination effect of the Port’s area shall be reduced with use of dull lights and directing of light beam inwards the building complex. • The Port’s administration is liable to ensure good operational condition of roads used throughout the Port’s Impact on condition of local roads operations. Proper caution signs shall be installed there. Propagation of noise and vibration • Systematic maintenance check of machinery • Periodic control noise and vibration levels Permanent jobs established due to the • The impact is positive, no mitigation is required. Port’s operations Improved socioeconomic conditions • The impact is positive, no mitigation is required. due to the Port’s operations

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Page 37 of 38 7 Conclusions and Recommendations The following conclusions were made and recommendations developed based on the environmental audit of Poti Sea Prot Corporation:

Conclusions: 1. Poti Sea Port Corporation operates in compliance with Georgian legislation and international standards; 2. The Port has executed certain measures to reduce environmental impact due to its current operations; in particular commenced is reconstruction of berths 1 and 2, including construction of collector and treatment systems for industrial wastewater and stormwater; 3. Personnel are provided with personal protection equipment and overalls. Occupational and general safety trainings and testing are carried out periodically (one a six-months), what has notably decreased traumatism in the company for the last few years. 4. According to the estimations, concentration of air pollutant should not surpass permitted values. At the boundary of resided zone concentration of inorganic dust exceed MPC during unfavorable meteorological conditions or violation technological regime throughout bulk handling. Spread of pollutant shall be minimized through preventive measures suggested in the mitigation plan. 5. Measured noise levels show that the Port does not cause significant noise nuisance. 6. Major part of hazardous waste is removed from the Port by licensed contractors. Required is to introduce separated waste collection and provide properly labeled containers of relevant colour. Landfilling of oily solid waste and oil filters is to be decided as at present they are handled together with other waste. 7. For 2009 planned is to construct collection system, treatment facility and in-depth discharge system for industrial wastewater and storm water so as to prevent pollution of the Port’s internal water area. 8. Storm waters from the berths effluent the Port’s internal water area untreated. Necessary is to arrange a treatment facility as recommended in the mitigation plan. 9. Impact of the Port’s current operations is insignificant for biological environment. Certain impact on the marine biosphere may occur when dredging the access canal. 10. The Port significantly improves socio-economic environment of Poti City and the region. 11. The Port’s Management has an investment plan, which incorporates solving of urgent ecological problems faced by the enterprise.

Recommendations: Due to the mentioned the following measures are to be carried out to reduce environmental impact: 1. Reduction of air emissions requires: • Ventilation of tankers prior infilling; • Optimization of combustion process in boilers; • Preservation of technological regulations when handling bulk cargo, wetting cargo surfaces in unfavorable weather, covering surfacing of bulks. 2. Reduction of impact to aquatic environment requires: • Completion of reconstruction of berths 1 and 2 in 2009, including construction of wastewater treatment facility and in-depth discharge system. • Completion of reconstruction of berths 13 and 14 in 2009, including construction of wastewater collector and treatment systems;

SCIENTIFIC RESEARCH FIRM GAMMA Environmental Audit, Poti Sea Port Page 38 of 38

• Ensuring of smooth operation of sewage systems, oil traps and treatment facilities; • In 2010-2011 designing and execution of reconstruction projects for wastewater treatment facilities of berths (except but berths 1 and 2); the design shall envisage arrangement of local treatment unit for each discharge point. • Monitoring of wastewater quality and water quality in the Port’s internal water area (particulates, BOD, TPH). 3. Reduction of spill risk for oil products/liquid chemicals requires: • Adherence to safety requirements throughout loading/unloading operations; • Ensuring of good technical condition and tightness of devices, as well as readiness of spill response equipment and personnel; 4. Improvement of waste management practices requires: • Introduction of separated waste collection what on its part requires provision of properly labeled and tightly lidded containers of relevant colour for every site (as planned for 2009); • Arrangement of special grounds at waste stowage sites to prevent littering and washing-away. • Allocation of special facilities to keep oily waste, used oils or residues of oil products. These wastes shall be landfilled by an adequately licensed contractor.

SCIENTIFIC RESEARCH FIRM GAMMA