Business news from Ukraine

ZAPORIZHSTAL CONTINUES TO WORK AT 50% OF ITS CAPACITY, EXPERIENCES DIFFICULTIES WITH LOGISTICS – CEO

Zaporizhstal metallurgical plant, part of Metinvest, after a partial resumption of production, continues to operate at 50% of its capacity, Oleksandr Myronenko, general director of Zaporizhstal, said in an interview with the Segodnya newspaper.
According to him, there are currently problems with logistics – the supply of raw materials and the shipment of finished products.
At the same time, it is noted that due to significant problems with logistics and overstocking of railway crossings, Zaporizhia metal enterprises are forced to consider options for reducing production.
“Problems with logistics have not been resolved. We have significant problems with the shipment of our products to customers in the EU. Before the war, all our routes passed through ports, but they are not yet available. Now we have significant overstocking at border crossings in western Ukraine. All this forces us to consider the option of reducing production, because our products simply cannot be transported across the border,” Myronenko explained.
He noted that the leaders of the enterprise are doing everything possible to maintain the volume of exports and the inflow of foreign currency into the country, in particular, they provide additional equipment for reloading products at the border with the European Union. In addition, together with the Cabinet of Ministers, they are looking for ways to solve problems with logistics.
Earlier, other enterprises of the country announced problems with logistics.
Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.

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THIRD ROUND OF UKRAINE-RUSSIA TALKS YIELDS SMALL IMPROVEMENTS FOR LOGISTICS OF HUMANITARIAN CORRIDORS

The third round of Ukraine-Russia talks has produced small positive shifts in the matter of providing humanitarian corridors, an advisor of the head of Ukraine’s presidential office, said.
“Third round of talks is over. Small positive shifts to improve the logistics of humanitarian corridors,” Mykhailo Podolyak tweeted on Monday.
The corridors will be altered for a more efficient evacuation, he said.
As for the other issues, intense consultations continue, he said.
“From the standpoint of the key political trek – ceasefire, reconciliation, cessation of hostilities – intense consultations will continue. As of today, there is no result to make any considerable improvement in the situation. Still, yet again I want to stress: the consultations will continue and we will get the results,” Podolyak said.
Today’s talks lasted more than three hours in Belavezhskaya Pushcha, Brest region, Belarus, the same place where they were held the last time on March 3. The first round was held in Gomel region on February 28.

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NOVA POSHTA WANTS TO CHANGE LOGISTICS TO BDF CONTAINERS BY 2025

The Nova Poshta group of companies plans to transfer all logistics to BDF containers by 2025, Director of Nova Poshta Oleksandr Bulba said at the opening of the DAO innovative terminal in Dnipro last week.
According to him, the company has been implementing the decision to switch from conventional trucks to BDF containers since 2017. Containers are produced at three plants in Cherkasy region – MOKAVTO, SmilaMash and Intercargo. A total of 1,900 units have already been manufactured. They are used to deliver 100% of parcels and documents.
“In 2022, we will receive another 700 BDF containers. This will allow us to deliver up to 55% of cargo to this format. The task is to bring the fleet to 4,000 BDF containers and completely transfer all logistics, both parcels and cargo, by 2025,” Bulba said.
The Nova Poshta group of companies includes, in particular, Nova Poshta, NP Logistic, NovaPay and Nova Poshta Global companies. The company’s network has more than 9,900 branches throughout Ukraine, the number of shipments for 2021 exceeded 372 million. In 2021, the group transferred UAH 6.4 billion of taxes and fees to the country’s budget.

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NEW SUPPLY ON WAREHOUSE MARKET IN UKRAINE WILL EXCEED 360,000 SQ M

The volume of new supply on the warehouse and logistics real estate market in Ukraine in 2021-2022 will amount to 364,000 sq m, while about 200,000 square meters is to be commissioned in the market of Lviv and the region, according to a study by Alterra Group.
“The leader is Lviv, where it is planned to put into operation about 200,000 square meters. In Kyiv, it is planned to introduce those projects that were predicted back in 2019 and 2020. In the regions, most of the premises planned for commissioning by developers are occupied by post offices and logistics companies,” Dmytro Kovalchuk, the co-owner of Alterra Group, said during the web conference on the analytics of the warehouse real estate market.
So, in Kyiv, the volume of new supply in 2021-2022 will amount to 71,400 square meters, among the planned projects, in particular, are the warehouse FM Logistic (17,000 sq m), Sun Factory 2 (23,400 sq m), Makarovsky of ADG developer (15,000 sq m).
Among the objects in Lviv are the expansion of the Protec warehouse in Zymova Voda by 40,000 sq m, the warehouse Lvivsilmash (42,200 sq m), a project from Galileo Logistic (45,000 sq m), Port Lviv Logistic Center (40,000 sq m).
According to the company, postal operators will continue to actively develop, the total construction volume of which will be about 158,000 square meters. Among the projects announced in 2021 is the expansion of the Nova Poshta network in Dnipro, Odesa, Kyiv with a total area of projects of 37,000 square meters, the construction of Ukrposhta logistics terminals in Kyiv, Kharkiv, Lviv, Dnipro and Odesa (22,000 sq m each), the expansion of the distribution center Mist Express in Lviv to 11,000 sq m.
Alterra Group is engaged in complex services for commercial real estate, development and consulting. The company’s portfolio includes 31 projects with a total area of 117,500 square meters.

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DRAGON CAPITAL SELLS OMEGA-2 LOGISTICS COMPLEX IN BROVARY

Dragon Capital has completed the sale of the Omega-2 class A logistics complex with an area of ​​32,700 square meters in Brovary (Kyiv region), according to its press service on Monday.
“This is our first closing of a commercial real estate sale deal after we made a bet on this segment in 2016, and it demonstrates that there are opportunities in this market not only for profitable investments, but also for exits,” Dragon Capital Managing Director Volodymyr Tymochko said.
According to him, the company also continues to consider the possibility of spot acquisitions in the warehouse real estate sector. In addition, the plans also include the development of the company’s industrial parks in Kyiv (E40 Industrial Park) and Lviv (Ryasne-2).
Dragon Capital is one of the largest groups of companies in Ukraine, which works in the field of investment and financial services and provides a full range of investment banking, brokerage, and asset management services to institutional, corporate and private clients.

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MHP plans to lease logistics center near Kiev

PrJSC Myronivsky Hliboproduct (MHP) intends to lease the logistics center Arctic (Arktyka) in the village Sofiyevska Borschahivka near Kyiv from Dragon Capital.

As follows from the agenda of the Antimonopoly Committee of Ukraine, the issue of granting permission for the lease is planned to be considered on January 11.

MHP is the largest poultry producer in Ukraine. It is also engaged in production of grain, sunflower oil, meat. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, in particular at its factories in the Netherlands and Slovakia. In February 2019, MHP completed the acquisition of the Slovenian company Perutnina Ptuj.

In addition, at the end of 2020, the MHP supervisory board made a decision to establish a branch named MHP Logistics.

The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk.

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