Ukraine to Kick off Radical Transformation of Its Port Sector

News 23 Sep 2020 by WCN Editorial

Ukraine seems to be about to launch a large-scale redistribution of the state-owned property in its port industry

The government will either grant concessions or privatise six harbours currently controlled by the government, according to the country’s president Volodymyr Zelensky.

“We would welcome Austria’s participation in the would-be tenders”, he said during his official visit to Vienna in the middle of September.

The Ukrainian leader played up the importance of PPPs for the further development of the nation’s port sector, as well as relevant transport infrastructure. In that respect, he also touched upon the possibility to extend the Russian-gauge rail line from the Ukrainian-Slovakian border up to Vienna – a key point for the Vienna Chamber of Commerce.

“We are planning to carry out the concession projects at the ports of Chornomorsk, Berdyansk and Izmail,” commented Ukraine’s infrastructure minister Vladyslav Kryklii.

”This would later be followed by the privatisation of state-run stevedoring companies at, Skadovsk, Bilhorod-Dnistrovsky and Ust-Dunaysk. It is planned to prepare feasibility studies for all the six projects by the end of the current year.”

The Ukrainian parliament passed a specially drafted concession Bill in October last year. The following month, Raivis Veckagans, the then head of the Ukrainian Sea Ports Authority (USPA), declared Kyiv’s determination to withdraw from stevedoring activity in favour of private operators by 2025.

This year, Qatar-based QTerminals and Switzerland-registered Risoil won Ukrainian infrastructure ministry’s tenders and then signed appropriate agreements for the concession of the Ukrainian Black Sea harbours of Olvia and Kherson respectively.

Actually, Ukrainian law firm Interlegal has previously explained that these two concessions were made under the law as it existed before last October, but the tender agreements were drawn up as if the new Bill were already the law.

Kryklii said that Olvia and Kherson had, together with international consultants (including the European Bank for Reconstruction and Development and International Finance Corporation), been selected as pilot projects for the would-be radical transformation in the port industry.

Under the circumstances, the process is likely to gain momentum in the immediate future, with Ukraine’s government mulling over concession tenders for such domestic giants as Odessa, Pivdenny and Mariupol.

https://www.worldcargonews.com/news/news/ukraine-to-kick-off-radical-transformation-of-its-port-sector-65039