Brooklyn-Kiev Interested in Concession of Public Stevedore Olvia

11 Июн

Specialised Sea Port (SSP) Olvia was visited on Friday by representatives of LLC Brooklyn-Kiev and Odessa Regional Branch of State Property Fund of Ukraine (SPFU) in the course of concession pilot project implementation.

As the port’s Press Office has reported, the visit was aimed at the potential investor’s assessment of the production capacities and state of port infrastructure assets to be transferred to concession.

President of Brooklyn-Kiev Yurii Gubankov and Head of SPFU Regional Branch Oleksii Kosmin met Head of Olvia Branch of Ukrainian Sea Ports Authority (USPA) Andrii Iehorov, familiarised the concession project conditions, and examined the port.

The official announcement of tenders on concession of the assets of the state enterprise (SE) Stevedoring Company (SC) Olvia and of SE Kherson Sea Trade Port (KSTP) is anticipated in June-July 2019, upon the approval of tender documentation. The contest paperwork is already developed and submitted for approval to Cabinet of Ministers of Ukraine. The law in force allows a little over three months to conduct a tender and identify its winner.

SE SC Olvia and SE KSTP as well as the ferry complex of SE Chornomorsk STP are the port sector concession pilot projects’ implementation sites. It had been exoected earlier that the bidding start could be announced in April 2019 and winners defined in July-August 2019. As of September 2018, there were above 25 Ukrainian and overseas companies to show their concern in those concessions, including Dnipro Cargo Ltd, Metinvest, Portinvest, Ukrrichflot, Bunge (the USA), COFCO (China), Mitsubishi Corporation (Japan), POSCO Daewoo (South Korea) et al.

The concession pilot projects were adopted by Ministry of Infrastructure on 23 June 2016, their Feasibility Studies (FS) were developed by the EBRD and IFC established consortium of international consultants (Castalia, MTBS, EY etc.), basing on the market system analyses, financial, technical, environmental, and legal expertise provided. Moreover, the FS designers held meetings with potential domestic and foreign private investors in order to consider their suggestions regarding the projects’ realisation.

FS passed through discussions with labour force representatives, public stevedores, local authorities, and were endorsed by Ministry of Infrastructure and Ministry of Economic Development and Trade, taking into account assurances of further employment of the state enterprises’ employees.

LLC Brooklyn-Kiev has provided stevedoring activities in Odessa Port since 1994. The company operates Berths 38 (Pier 3), 42, 43, 44-45 (Elevator Pier), and 46-47 (Sugar Pier). It is dedicated to handling general, bulk, and breakbulk cargoes. In 2018 it reduced its throughput as compared to 2017 by 37.9%, namely down to 2.408M t.

https://ports.com.ua/news/bruklin-kiev-interesuetsya-kontsessiey-gosstividora-olviya