Assets of Kherson Port Transferred to Concessionaire

24 Дек

The handing over / delivery acts are signed for the term of 30 years.

The state enterprise (SE) Kherson sea trade port (KSTP) is transferred to the concessionaire company management. The acts of delivery for the period of 30 years have been signed by Ministry of Infrastructure of Ukraine (MIU), SE Ukrainian sea ports authority (USPA), LLC Risoil-Kherson, and LLC Kherson Port.

“This month we have accomplished already the second successful concession project. It is important that on the whole we finalise the year with understanding of the action plan on each sea port of Ukraine. Kherson Port will be modernised which is going to substantially enhance its efficacy. There are at least 216M UAH invested in the port in the next 3.5 years, and not less than 18M UAH invested in the city of Kherson infrastructure spoken about. In particular, the plans include co-funding of capital repairs of the port heading roads and a new trucks parking area off the city limits. The capital investments will help realise the potential of inland water transport (IWT) as the port is situated in the Dnipro river delta. One of the concession agreement clauses stipulates the enlargement by up to 80% for the share of cargoes reaching the port by IWT and rails”, noted Minister of Infrastructure Oleksandr Kubrakov.

Assets of Kherson Port Transferred to Concessionaire

It is pointed out that the total number of investments is 320M UAH (about 11.85 USD as of today’s rate).

The concessionaire company plans to provide updating and reconstruction of the equipment, mechanisation of the warehouses, erection of more silos. There is the plan-schedule of investments assignment already approved, and technical projects developed.

According to the concession agreement the concessionaire shall undertake to:

– pay the annual concession fee of not less than 12M UAH with the account of indexation, and 7% of the net income;

invest at least 216M UAH within the first 3.5 years from the date of transitional period expiry, and at least 62M UAH more within the first 10 years;

– secure cargo handling volume in the port at least 1.36M a year in 2030;

– ensure the port’s incessant activities;

– admit all the employees of KSTP and the corresponding part of USPA Branch employees, avoiding their dismissal within 10 years;

– avoid the workforce salaries and wages decrease within 3 years from the date they are enrolled by the concessionaire, keeping the salaries and wages growth in accordance with the law;

– take measures on the natural environment protection.

“High-quality preparing would enable to launch all the working processes in maximum short time. We are going to employ the modern approach, new equipment and technologies – this would mean not only increase of transhipment numbers, but also higher salaries and wages for our employees, improvement of working conditions and labour safety”, added the co-owner of Risoil and LLC Kherson Port Oleksandr Minov.

Let’s remind you that Risoil-Kherson won the concession tender on SE KSTP assets in January 2020. The company Risoil-Kherson was a consortium of Petro Oils & Chemicals (Georgian Industrial Group) and Risoil S.A. (Switzerland) sharing 50% each.