Business news from Ukraine

MYKOLAIV SEAPORT RAISES TRANSSHIPMENT BY 19%

Mykolaiv seaport in January 2019 increased cargo handling by 18.84% compared with January 2018, to 2.321 million tonnes.
According to the data of the Ukrainian Sea Ports authority, during this period the port increased the transshipment of exported cargo by 22.69%, to 1.78 million tonnes, imported cargo by 13.95%, to 491,970 tonnes, and coastal freight handling fell by 6.4%, to 47,330 tonnes. The port did not transship transit cargo.
In January 2019, the port cut the transshipment of liquid cargo by 1.12%, to 172,680 tonnes, increased dry bulk freight by 19.8%, to 1.838 million tonnes, packaged ones by 38.27%, to 310,770 tonnes.
As reported, Mykolaiv seaport in 2018 increased cargo handling by 24.09% compared with 2017, to 29.2 million tonnes.

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UKRAINIAN SEA PORTS AUTHORITY TO START TENDERS TO TRANSFER OLVIA STEVEDORE, KHERSON SEAPORT TO CONCESSION

The Ukrainian Sea Ports Authority plans to announce tenders to transfer Olvia stevedoring company and Kherson maritime merchandise port in concession in May 2019, Ukrainian Sea Ports Authority Head Raivis Veckagans said at a briefing at the Infrastructure Ministry of Ukraine on Thursday.
“An important process in 2019 will be our concession projects. We plan to set up a tender commission for project evaluation in February. In March, we plan that the tender documents and criteria for evaluating potential bidders will be approved, and in May we plan to announce the tender,” he said.
Veckagans expects that by autumn, the Ukrainian Sea Ports Authority will sign the first concession agreements with public stevedoring companies.
“Also this year we plan to complete work on the feasibility studies for the following concession projects: the railway ferry complex at Chornomorsk and the public stevedoring company at the Yuzhny seaport.
As reported, the Infrastructure Ministry of Ukraine was expecting to conduct tender procedures for the transfer of Olvia stevedoring company and Kherson maritime merchandise port in concession in March-April and sign contracts with the winners of the tenders in May-June 2019.

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MYKOLAIV SEAPORT TO ATTRACT UAH 1.2 BLN OF PRIVATE INVESTMENT INTO NEW GRAIN, OILSEEDS TRANSSHIPMENT FACILITIES

Construction of new grain and oilseeds transshipment facilities at the Mykolaiv seaport will start in the rear of berth eight. Private investment will total over UAH 1.2 billion, the Ukrainian Sea Port Authority has reported. “We are investing our own funds and are actively cooperating with port operators and private businesses. This is the development of the berth and rear infrastructure of berths zero and eight. This will increase the capacity of the Mykolaiv port for processing grain by more than 2 million tonnes per year, oil – by 750,000 tonnes per year,” Head of the Ukrainian Sea Port Authority Raivis Veckagans said during a working visit to the Mykolaiv seaport.
The Ukrainian Sea Port Authority refused to name investors, adding that this would be a new cooperation for the port. The Ukrainian Sea Port Authority plans to allocate UAH 350 million within the framework of fulfilling the company’s obligations under a public private partnership project for the construction and dredging of berth eight. At the same time, private investment in infrastructure will amount to over UAH 1.2 billion.
According to the Ukrainian Sea Port Authority, the planned grain complex will have a storage capacity of 96,000 tonnes, a warehouse – 40,000 tonnes, as well as other support facilities. Earlier, the Infrastructure Ministry reported that COFCO (China National Cereals, Oils and Foodstuffs Corporation) is ready to invest up to $30 million in the berth capacity of the Mykolaiv port and river logistics.
Seaside Terminal intends to invest about UAH 120 million in the reconstruction of the Mykolaiv-Vantazhny railway station in order to increase its capacity.

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GERMAN KFW COULD PROVIDE EUR 150 MLN FOR ROAD REPAIR IN UKRAINE AND DREDGING WORKS AT ODESA SEAPORT

Germany’s state-run development bank (KfW) could provide EUR 60 million to Ukraine for the completion of construction of a breakwater and dredging works at the Odesa seaport and EUR 90 million for overhaul of H08 Zaporizhia-Mariupol highway and restoration of H32 Pokrovsk-Bakhmut-Mykhailivka road.
“Negotiations with KfW on a loan: EUR 60 million to complete the construction of a breakwater in the port of Odesa and EUR 90 million to overhaul H08 Zaporizhia-Mariupol roads,” Deputy Infrastructure Minister of Ukraine for European integration Viktor Dovhan wrote on his Facebook page.
At the same time, according to a posting on the website of the Infrastructure Ministry, Minister Volodymyr Omelyan confirmed Ukraine’s interest in borrowing from the Federal Republic of Germany in the amount of EUR 150 million (the KfW loan) provided for the restoration of transport infrastructure in the eastern regions of Ukraine. In particular, the Infrastructure Ministry plans to implement the following projects: the construction of a breakwater and the implementation of works to deepen the water area of the port of Odesa; repair works at the national road N08 Boryspil-Dnipro-Zaporizhia (through Kremenchuk)-Mariupol on the Zaporizhia-Mariupol road section and the restoration and improvement of the transport and operational condition of the H32 Pokrovsk-Bakhmut-Mykhailivka state-sustained highway.
According to the Infrastructure Ministry, Germany also expressed interest in participating in the modernization of the electric locomotives of JSC Ukrzaliznytsia and in electrifying the railways, in particular, in the south of Ukraine, near the ports.
In addition, as a result of negotiations with Germany, Ukraine will receive an additional 20,000 bilateral permits for road haulage, which will be valid until the end of January 2019.
In addition, the parties agreed to consider the possibility of increasing the quota of permits for 2019.

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CHORNOMORSK SEAPORT RAISES CARGO HANDLING BY 31% IN SEVEN MONTHS OF 2018

Chornomorsk seaport (Odesa region) in January-July 2018 increased cargo handling by 31.2% compared to January-July 2017, to 11.953 million tonnes.
According to the Ukrainian Sea Ports Authority, for the seven months of 2018 the enterprise increased transshipment of exported cargo by 15.87%, to 8.87 million tonnes, imported goods by 2.43 times, to 2.438 million tonnes. Transshipment of transit cargo increased by 37.7%, to 618,330 tonnes, while the port handled 22,460 tonnes of cabotage cargo.
Transshipment of liquid cargo decreased by 7.93%, to 933,660 tonnes, dry bulk cargo increased by 20.69%, to 7.99 million tonnes, that of non-bulk goods doubled, to 3.03 million tonnes. Transshipment of containers amounted to 98,616 TEU.
Chornomorsk port is a universal international port, one of the largest on the Black Sea. The enterprise has specialized terminals and complexes, which allow overloading a wide range of goods: liquid, bulk, general. Its 29 berths are capable of receiving ships with a carrying capacity of up to 100,000 tonnes. The annual designed capacity of the port is more than 30 million tonnes.

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GLOBAL OPERATOR OF PORT SERVICES P & O MARITIME ENTERS CHORNOMOTSK SEAPORT

P & O Maritime Ukraine, a subsidiary of the global operator of port services P & O Maritime, providing tugboat services at the Yuzhny port since early 2018, has started providing these services in the Chornomorsk seaport (both based in Odesa region).
“Thus, now the company is present in two largest seaports of Ukraine – Yuzhny and Chornomorsk,” P & O Maritime Ukraine said on Wednesday.
According to the report, the company sent three tugboats to the Chornomorsk seaport, and their crews also consist of employees of the Chornomorsk port fleet.
P & O Maritime Ukraine Director General Mykhailo Sokolov said that the arrival of the company to the Chornomorsk port would help to increase the quality of services in the port.
As reported, in January 2018, P&O Maritime, a fully owned subsidiary of DP World Group, received control over LB Shipping company and started providing tugboat services at the Yuzhny port. The co-investor of the deal was SD Capital investment company belonged to Andriy Stavnitser and Filip Hrushko.

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