Business news from Ukraine


SMD-Invest has started dredging works at the Kherson maritime merchandise port as a winner of the tender of the Kherson branch of state-owned enterprise (SOE) Ukrainian Sea Ports Authority. “The last time the operational dredging in the port of Kherson was carried out seven years ago – in 2005-2011: then the total volume was less than 100,000 cubic meters. Now the contractor will perform four times more dredging on request of the Ukrainian Sea Ports Authority. Thanks to this, the state and private stevedores will be able to use the technical capabilities of the port to its fullest capacity,” Sea Ports Authority Head Raivis Veckagans said, being quoted in a posting on the website of the authority.
According to the Sea Ports Authority, the dredging fleet of the contractor has already arrived at the port of Kherson. First, it is planned to dredge six anchorages, then – the remaining facilities of the contract.
On February 26, 2018, SMD-Invest became the winner in the tender for dredging at the port of Kherson with a price offer of UAH 120.2 million with an estimated value of UAH 126.9 million. The volume of dredging works will be 401,300 cubic meters, the works are to be finished in up to six months.

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State-owned enterprise (SOE) Ukrainian Sea Port Authority in January-October 2018 increased dredging works using own fleet by 13% year-over-year, to 1.3 million cubic meters (mcm). “However, the volume of works to be carried out is larger. Only in 2018 we announced tender to select subcontractors in the ProZorro e-procurement system under seven projects with a total volume of over 5.5 mcm,” the press service of the authority reported.
The Ukrainian Sea Port Authority plans to double dredging works at Ukrainian ports in 2019, bringing the volume of projects to 16.335 million cubic meters.
The Ukrainian Sea Port Authority is a SOE that oversees the operation of 13 seaports on the territory of Ukraine. Founded in 2013, it owns strategic facilities for port infrastructure, which include seaport areas, hydraulic structures, berths and public infrastructure such as approach roads and utility networks.
The SOE provides for the functioning of seaports, charges port dues and provides general maintenance services. Each port has a branch of the authority, which acts as the administration of the port. 80% of the authority’s revenue is denominated in U.S. dollars, whereas in expenditures the hryvnia component dominates.



The Ukrainian Sea Port Authority has announced an open tender to select a contractor to conduct dredging works in the internal water area of Odesa Maritime Merchandise Port, the authority has said in a report. It is planned that dredging will be conducted in 2018-2019. Over 91,000 cubic meters of soil is to be removed. The expect cost of works is UAH 19.03 million. “We conducted dredging works at Odesa seaport last year using own fleet, and this year we will attract a contractor, as the authority’s fleet is used at other sections, in particular, works in Danube and Azov regions,” Ukrainian Sea Port Authority Head Ravis Veckagans said.
Bids can be submitted both by Ukrainian and international companies before June 4, 2018.

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The Ukrainian Sea Port Authority and China Harbour Engineering Company Ltd. (CHEC) on April 6, 2018 signed two contracts for carrying out dredging works at the Chornomorsk seaport (Odesa region): one document envisages dredging works in the approach canal and the second one – in the water area of the first boot basin of Sukhy estuary.
An Interfax-Ukraine correspondent has reported that the signing ceremony was held with participation of Ukrainian Infrastructure Minister Volodymyr Omelyan, Ukrainian Sea Port Authority Head Raivis Veckagans, Head of the administration of the Chornomorsk branch of the Ukrainian Sea Port Authority Viacheslav Voloshyn, Head of the administration of the Yuzhny branch of the Ukrainian Sea Port Authority Maksym Shyrokov, Head of the representative office of CHEC in Ukraine Lin Tao, representatives of the Chinese Embassy in Ukraine and journalists.
“The project of dredging the water area of the Chornomorsk seaport provides for an increase in the depths of water approaches and the operational water area of the port to 16 meters and will allow more efficient functioning of one of the largest seaports in Ukraine,” Omelyan said.
He thanked Veckagans who, in his words, together with the team, created all the necessary conditions for attracting both national and foreign companies with a world-wide reputation to participate in tenders.
“Traditionally, the contract organization was chosen based on the results of the tender in the ProZorro e-procurement system, which ensures absolute transparency and openness of the process and excludes the possibility of any corruption. Thus, according to the results of the tender, we have saved more than UAH 40 million, and the winner is China Harbour Engineering Company Ltd.,” Omelyan said.
As a result of the tender, which took place on March 13, the savings amounted to 10% of the expected value.
The cost of the project is UAH 404 million.
“The project should be implemented before the end of 2018. Reconstruction of the maritime approach canal and the water area of the first boot basin will further allow for the reconstruction of the berths of the Chornomorsk port and the dredging works in the operating area of the berths,” Veckagans said.

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