American and Chinese Investors Showing Interest in Concession of Three Berths in Chornomorsk

25 Июл

European Agro Investment Company intends to obtain with help of Chinese and American investors a concession for Berths 7-9 of Chornomorsk port being on the books of the state enterprise Chornomorsk Sea Trade Port (CSTP), and to build there a multipurpose transhipment complex.
According to the Odessa Region Council’s press office, the investment bidding was discussed at the meeting of the Council Chairman Anatoly Urbansky and Director of European Agro Investment Company Ukraine Galina Brynziannyk.
The Chinese firm TouchStone Capital Group Holdings Limited and American investment fund Navigator Principal Investors LLC are ready to invest in the project $250M. It is envisaged that the berth depth of the complex would be enlarged to 16 m to admit Panamax and post-Panamax vessels. Also the investors wish to re-equip and modernise the berths’ rear yards, Warehouse 11, and to construct transport junctions in the port.
“Creation of a modern transhipment complex is going to meet the port’s needs in the export/import component as well as involve in cooperation off-site freight owners and boost the cargo turnover. As per calculations, the number of vessels calling the port will augment by 350 a year, the designed annual throughput amounting to 10.92M of wide range type cargoes. Moreover, European Agro Investment Company is granting 230-250 jobs. Also such issues as retaining the wages levels and working conditions, employment benefits – all of that will be kept for the port employees”, told Ms Brynziannyk.
TouchStone Capital Group Holdings Limited is a Chinese company having started its activities 15 years ago and its main concept concerns consolidation of financial and sectoral platforms between China and other countries in the world. The company collaborates with several Chinese public enterprises as well as realises projects of the total cost above $30Bn in countries of West and East Europe, Australia, Asia, South and North America, ex-Soviet states.
Navigator Principal Investors LLC is an investment fund established in New York. It focuses on inputs in first of all European market. The American fund is ready to invest in Ukrainian ports and agriculture some $100M. In its eyeshot are Odessa, Mykolaiv, and Kherson, as well as large agricultural producers. The fund helps to control general growth strategy and income rise, but does not manage businesses on everyday base.
As it recently came known, a global box terminal operator Hutchison Ports plans to lease Berths 1-6 and their rear areas from the sea port of Chornomorsk. Besides that, the port’s railway ferry complex is included in the port sector concession pilot projects list.
According to the USPA Register, SE CSTP operates Berths 1, 2, 7, 8 (taken out of service), 9 (sections I-III out of service), 10, 21, 22, 26, 27, 28 of the port Chornomorsk. The port is situated on the banks of Suhoi Liman 12 nm south-west of Odessa. The annual designed capacity is over 30M t, number of quays – 25, waterfront length – 5.459 km. There are many operators working in the port – SE CSTP, LLC TrabsBulkTerminal, LLC Illichevsk Grain Terminal, LLC Trans-Service, LLC Risoil Terminal, LLC Olir Resources, and others.
In 2017 the port magnified its cargo turnover comparing to 2016 by 8.1% i.t. up to 17.225M t, its specific share in the entire Ukraine’s sea ports cargo throughput amounting to 12.9% against 12.1% in 2016.