Ukrainian Danube Shipping Company has put up for sale six bulk carriers, the company’s CEO Dmytro Moskalenko has announced.
Applications from those wishing to participate in the auction were launched on the zakupivli.pro website on December 5 and will last until December 12. All six vessels are being auctioned as a single lot. Its price is UAH 440.68 million (excluding VAT).
“UDP is starting to sell the maritime fleet. It is a painful but the only right decision. UDP’s key segment is river freight transportation. We have to get rid of unprofitable non-core assets and direct resources to modernize the river fleet. It is in the river freight segment that the shipping company has development prospects,” Moskalenko wrote on Facebook on Friday.
According to him, shipowners are likely to be interested in the repaired Vilkovo and Izmail, with documents ready for operation.
“However, it is important that the Tatarbunary, Viana do Castelo, Kiliya and Reni, which have been in storage for many years, also find a buyer,” said the USP CEO.
According to Moskalenko, last year the UDP began to restore the maritime fleet.
“During the blockade of Odesa ports, the government set a task to ensure the export of agricultural products from the Danube ports. At last year’s freight rates, the restoration of the fleet was a profitable investment with a short payback period. However, after the blockade of Odesa ports was lifted, freight rates dropped several times. The Danube ports became empty. And the further trend is disappointing,” he said.
According to the UDP CEO, a number of private companies operate at low rates as well, as they “optimize taxes, operate hundreds of fleet units of different tonnages, work in different segments, in different markets with guaranteed return loading of vessels.”
“We are a state-owned company that pays all taxes in good faith. In such unequal conditions, with a working fleet of two small ships (the other four are out of commission), it is almost impossible to compete,” Moskalenko emphasized.
He noted that the USP was working on all possible options: they considered proposals to transfer the vessels to a time charter. However, the income from the charter will not cover the future costs of maintenance and repair of the vessels. The project could have become deliberately unprofitable for the state.
“Keeping the vessels idle forever is also not an option. Fleet maintenance is a significant monthly expense. Our vessels are more than 30 years old, so in some time we will have to spend money again to extend the validity of the documents,” Moskalenko summed up, noting that the decision to sell the fleet was supported by the shareholder, the Ministry of Community Development, Territories and Infrastructure of Ukraine.
Ukrainian metallurgical enterprises in January-November of this year increased pig iron production – by 19.8%, up to 6.524 million tons.
In November, 542.9 thousand tons of pig iron was produced, while in the previous month – 624.9 thousand tons of pig iron. As reported, Ukraine in 2023 reduced pig iron smelting by 6.1% to 6.003 million tons.
Ukraine in 2022 reduced pig iron production by 69.8% – to 6.391 million tons. For 2021, 21.165 million tons of pig iron was produced (103.6% to 2020).
In November 2024, Turkey overtook Spain, the unchallenged leader, in imports of Ukrainian corn, Dmytro Solomchuk, MP, member of the Committee on Agrarian and Land Policy, said on Facebook.
“In terms of physical weight, the figures are significant – 2.5 million tons of exports in November, of which 620 thousand tons were bought by Turkey,” he wrote.
The MP noted that in November, a total of $2.3 billion worth of agricultural products were exported, of which only $512 million was corn.
As reported, on October 10, 2024, Turkey introduced quotas on imports of 1 million tons of corn and reduced the duty to 5% by the end of December 2024.
According to Ukrmetallurgprom, Ukrainian steelmakers increased steel production by 23.1% to 7.028 million tons in January-November this year.
In November, 540.8 thousand tons of steel were produced, compared to 603.8 thousand tons in the previous month.
As reported, Ukraine reduced steel production by 0.6% to 6.228 million tons in 2023. In 2022, Ukraine reduced steel production by 70.7% to 6.263 million tons. In 2021, the country produced 21.366 million tons of steel (103.6%).
In January-November this year, Ukrainian steelmakers increased production of total rolled products by 18% year-on-year, up to 5.741 million tons from 4.864 million tons, according to preliminary data. In November, the company produced 477 thousand tons of rolled products.
As reported, in 2023, Ukraine increased its production of total rolled products by 0.4% compared to 2022, to 5.372 million tons. In 2022, Ukraine reduced its production of rolled products by 72% compared to 2021, to 5.350 million tons.
