Now the situation in Ukrainian ports doesn’t fit in any of the four classical patterns of the port sector functioning.
The World Bank (WB) analysts believe that in progress of the port sector further reforming Ukrainian Sea Ports Authority (USPA) needs to secure introduction of the Port-Landlord management pattern. It would favour complex planning and development of the ports, improve conditions for the private investments attraction and enable Ukraine to strengthen its stance as an exporting country of the global market.
This was declared during the presentation of WB’s one-and-a-half-year investigation results. The WB experts pointed out Ukraine’s important position as an exporter of food commodities and mining and metals sector products. The analysts note as well a high level of the private business’s interest in the port industry of Ukraine. However, the issue of lands prospective development in the ports and adjacent areas may in the international experts’ view become a substantial constraining factor for further realisation of public-private partnership (PPP) projects and investments mobilisation to upgrade the infrastructure.
Today, as per the WB consultants’ data, the arrangements in Ukrainian ports correspond to none of the four standard port management schemes. The experts highlighted based on Pivdenny Port as an example that land matters can be too complicated for the implementation of investment projects in ports. Prospective land plots for development belong to various local authorities, the regional administration, or private entities. “To draw large investors this situation should be adjusted. The most efficient in this case could be adaptation of Ukrainian ports to the scheme Port-Landlord vesting USPA with the powers for system coordination of the port lands use planning and port areas complex development”, observed WB Senior Transport and Logistics Specialist Luis Blancas.
USPA’s Vice Chairman of Supervisory Board Patrick Verhoeven noted that the Port-Landlord pattern employed globally must be adapted for Ukraine taking into account the interests of the state, port municipalities, and business. “It is not the change of existing land relations in port spoken about. A new pattern’s introduction requires only consolidation of the port authority capabilities on management, planning, and development of port areas”, underlined Mr Verhoeven.
According to USPA’s manager Raivis Veckagans, the Port-Landlord mechanism is applied in many ports of the world, in particular, in Antwerp, Rotterdam, Singapore, where it has proven its efficacy since it serves the basis for a systematic approach to ports management understandable for all the stakeholders.
Minister of Infrastructure of Ukraine Vladyslav Kryklii in his turn remarked that in order to enhance the public assets management efficiency in November 2019 the ministry promulgated the draft Law on Corporatisation of Ukrainian Sea Ports Authority. “This decision is going to enable the state enterprise to reorganise in prospect into a joint-stock society. The draft Corporate Strategy of USPA till 2025 envisages accommodation to the pattern well- acknowledged globally – i.e. Port-Landlord. This means the state’s withdrawal from stevedoring activities and introduction of integrated approach to landownership and land-tenure in the ports”, informed Mr Kryklii.
https://cfts.org.ua/news/2019/12/16/vsemirnyy_bank_rekomenduet_vnedryat_v_ukraine_model_port_lendlord_56625