Business news from Ukraine


2 October , 2019  

Over 46 companies from 11 countries participated in the investment conference seeking for the projects related to transferring of Olvia stevedoring company and Kherson maritime merchandise port into concession, Ukrainian Sea Port Authority (USPA) reported.
According to the USPA, apart from the participants of Ukraine, the companies from Turkey, Belgium, the Netherlands, Singapore, Great Britain, Denmark, United States, Qatar, Georgia and Germany attended the conference.
Infrastructure Minister Vladyslav Krykliy and Chairman of Verkhovna Rada Committee on Transport and Infrastructure Yuriy Kysil have assured potential investors that all branches of power back implementation of the concession projects in the ports.
“Potential investors can expect that on a par with how they implement their projects in the port industry, the state will develop automobile and transport infrastructure. This will improve logistics throughout the country and load new capacities in the ports,” the report said.
According to USPA CEO Raivis Veckagans, tenders for pilot state stevedoring concession projects in Olvia stevedore and Kherson port open up new opportunities for the Ukrainian port industry to attract private investment in the development of port infrastructure, which have long been actively used in EU countries.
Required capital investment of both as estimated by international consultants amounts up to $65 million. These funds to be meant for modernization of existing port infrastructure, restoration of movable property in Kherson port, in Olvia the funds will be meant for reconstruction, modernization of existing facilities and construction of new port terminals.
This will increase the volume of transshipment of goods, revenues coming to the state and local budgets from the work of stevedores. Also, the cities of Mykolaiv and Kherson will receive mutual contributions from investors for the development of transport infrastructure related to the activities of ports.
The assets of the state stevedoring company in the Olvia stevedore to be transferred to the concession for a period of 35 years, and in the port of Kherson – for 30 years. At the same time, they will remain in state ownership and after the completion of concession agreements will be transferred to the state together with all the facilities in which the company invests, which will build or modernize them.