Economically Sound: Public Stevedores Olvia and Kherson Concession FS Presented to Labour and Local Power

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The concession pilot projects for Ukrainian ports are realisable and economically feasible. This is what the feasibility studies (FS) of the business cases developed by the EBRD sponsored international consultants consortium prove. The experts’ basic conclusions in respect of the public stevedores Olvia and Kherson transfer into concession have been presented to the labour forces and local authorities in late August in Mykolaiv and Kherson.
The efficacy of both concession projects is witnessed by the forecast data on cargo handling increase, enlargement of both the state and local budgets contributions, and the number of investments into the ports infrastructure. Besides that, there is a matter of particular attention, namely the peculiar approach towards the social issues as guarantees for the companies’ personnel further employment upon the concession.
“The financial analysis shows that the concession is economically proved for an investor even in the case of moderate throughput and conservative forecasts regarding future tariffs on the services”, noted the investments expert of International Financial Corporation (IFC) Oleg Kudashov. Thus, as per the FS, Olvia might enlarge its handling almost twice, from 2.55M t in 2018 to 4.59 t in 2025, while Kherson – from 1.1M t to 2.01.
Moreover, according to estimates of the international consultants, the concession is profitable for the city too, as the funds collected for Mykolaiv’s municipal budget resulted from the Olvia concession and its further activities for the first 5 years (2020 to 2025) are going optimistically to rise twice (by 241M UAH), and in Kherson – by 55M UAH.
The concession ventures anticipate as well substantial investments in the regions’ transport infrastructure development. First of all, the matter is about the solution of the cities’ transport problems, in particular the construction of new viaducts and overpasses, creation of cargo trucks parking lots, which would enable to decrease the load upon the city’s thoroughfares and provide for preservation of the roads.
In the course of the concession projects presentation State Secretary of Ministry of Infrastructure of Ukraine Andrii Halushchak mentioned that the ministry paid particular attention that the would-be investor should secure social guarantees for the labour force in full. Besides, the enterprises’ economical showings increase program offered by bidders will be among the selection criteria.
At the stage of building new and modernising the existing handling facilities, there are trainings and re-qualifying measures planned for the personnel. This is going to raise the labour’s professional level, enhance the work productivity and competitiveness of the company on the whole.
During the public stevedores concession projects FS consideration the trade unions initiated a number of amendments to be inserted. First of all, it was about the wages level to be preserved, and its annual indexation, as well as prolongation of the CBA for 5 years. Also it was the stipulated that any staff reduction should not be allowed in the course of the projects realisation.
Chairman of Marine Transport Workers Union of Ukraine Mykhailo Kireiev informed that he had addressed the FS authors and Ministry of Infrastructure with the proposal to establish a supervisory body to control the concession agreement implementation, membered by the trade unions representatives.

http://www.uspa.gov.ua/ru/press-tsentr/novosti/novosti-otrasli/16476-ekonomicheski-obosnovany-teo-kontsessii-gosstividorov-olviya-i-kherson-prezentovali-trudovym-kollektivam-i-mestnym-vlastyam