Business news from Ukraine

UKRAINIAN DANUBE NAVIGATION TO RAISE UP TO EUR 200 MLN TO MODERNIZE FLEET

PrJSC Ukrainian Danube Navigation plans to raise up to EUR 200 million in the next five years to modernize the fleet, acting chairman of the board of the Ukrainian Danube Navigation Oleksiy Khomiakov has told Interfax-Ukraine.
He also estimates the size of investments in the new fleet or in-depth modernization of the existing fleet of all market players that will be necessary to implement the full potential of the Dnipro River in the next five years in the amount of about EUR 1.7 billion.
“In the next five years, we plan to raise up to EUR 200 million, which will be used to modernize the fleet that is in the holding anchorage, as well as the possible construction of new units in cooperation with leading shipyards in the world,” Khomiakov said.
According to him, the Ministry of Infrastructure of Ukraine evaluates the Ukrainian Danube Navigation as the main national carrier, served to make up for the missing system offer to the main exporters of Ukraine for transportation along the Dnipro River.
He said that the company is negotiating with the institutional investors, who are interested in collaborating and investing in a new, more environmentally preferred and efficient fleet, capable of fully meeting Ukraine’s export needs for decades ahead, complementing the overloaded railway and automobile infrastructure.
“However, we still need to overcome a number of obstacles by creating an effective model of enterprise management, having an international audit performed, raising government guarantees and then come close to receiving relevant financing from the EBRD, the IFC, etc.,” Khomiakov said.

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UKRAINIAN SEA PORTS AUTHORITY’S FLEET PERFORMS 30% OF DREDGING OF ANNUAL PLAN

The total volume of operational dredging performed by technical fleet of Delta-Pilot branch of state-owned enterprise (SOE) Ukrainian Sea Ports Authority exceeded 500,000 cubic meters from the beginning of 2020, which is more than 30% of the annual plan, the press service of the Sea Ports Authority said on Monday, April 27.
The authority said that there was a scheduled repair of most of the branch’s technical fleet vessels in 2019. Three Rion dredging convoys were docked, while Inhulsky and Meotida dredging pumps were classified. It limited the dredging volume at the level of 824,700 cubic meters for 2019, but made it possible to establish plans for operational dredging by the own fleet at 1.6 million cubic meters for 2020.
In 2020, dredging was provided on the Buzko-Dniprovsko-Lymansky sea canal, Kherson sea canal, the sea access channel of the Danube-Black Sea deep water canal, the access channels of ports of Mariupol and Berdiansk and on the access channel of Dnistrovsko-Tsarehradsky.
Operational dredging is planned by technical fleet of Delta-Pilot branch in water areas and on the sea access channels of the ports of Odesa, Pivdenny, Mariupol, as well as on Kherson sea canal and on the sea access channel of the Danube-Black Sea deep water canal by the end of 2020.
The dredging fleet of Delta-Pilot branch of the of SOE Ukrainian Sea Ports Authority consists of three dredging pumps (Inhulsky, Meotida, Tylihulsky), as well as a dredging convoy as part of multi-bucket dredger Rion, two sludge vessels (Krymska-3, Krymska-9), and a MZ-318 multicat (an anchor handling vessel).

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CORPORATE PASSENGER VEHICLE FLEET IN UKRAINE 12% UP

Legal entities in Ukraine in January-September 2019 purchased and registered 20,300 passenger cars, which is 12% more than for the same period in 2018, including 19,000 new cars and 1,300 imported used cars, Ukrautoprom has said.
According to the association, the share of new cars in total corporate acquisitions this year was 97% compared to 93% a year earlier.
As for new cars, the highest demand among legal entities was recorded for Renault brand cars with 4,457 cars, Toyota ranked second with 2,968 cars, and Skoda ranked third with 2,533 cars.
When choosing imported used cars, legal entities more often chose Volkswagen cars, having acquired 173 passenger cars of this brand since the beginning of the year. This is followed by Nissan (129 units) and Mercedes-Benz (113 units).
Ukrautoprom noted that since the beginning of the year, 383,300 cars have been registered in Ukraine, of which 61,700 are new cars and 321,600 were used cars imported from abroad.

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BRITISH-BASED FERREXPO CONTINUES TO EXPAND ITS FLEET OF WAGONS IN UKRAINE

British-based Ferrexpo plc, which in Ukraine controls, in particular, Poltava and Yeristovo mining and processing plants (PGOK and YeGOK), continues to increase its fleet of wagons, having received 50 new high-sided cars from Kriukov Car Building Works (KCBW, Poltava region) from the ordered 400.
“Good news … We’ve received the first 50 new wagons from KCBW out of 400 ordered. Thus, there will be 3,050 high-sided wagons operating in Ferrotrans subsidiary. The planned increase in the fleet of our own wagons is necessary to implement Ferrexpo’s strategic plan to double the production of pellets within five years,” Vitaliy Oliynyk, the logistics manager at Ferrotrans, part of Ferrexpo Group, said on Facebook.
However, he noted that now an increase in the fleet of wagons will not lead to an increase in the shipment of products, “since the monopoly carrier does not have the technical ability to deliver goods to their destination.”
“Without attracting private capital to purchase locomotives and using them on trunk routes, we can’t even dream of increasing exports … We expect decisive actions from the new government, and we’ll get to work together,” the manager stated.
He regretted the loss of control over Stakhanov Car Building Plant, which was part of Finance and Credit financial and industrial group controlled by Ukrainian businessman Kostiantyn Zhevaho.
“If it wasn’t for war, then Ferrexpo would have been provided with absolutely any quantity of quality high-sided cars and dump cars produced by PJSC Stakhanov Car Building Plant,” Serhiy Zelensky, the plant’s ex-manager for sales and marketing, noted.

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SKYUP AIRLINE EXPANDS FLEET WITH EIGHTH AIRCRAFT

The Ukrainian airline SkyUp has expanded its fleet with the eighth aircraft – Boeing 737-800, the airline reported on its Facebook page.
According to the report, the new Boeing 737-800 with a UR-SQG tail number landed at Boryspil airport (Kyiv) on June 7.
The airplane will be a reserve aircraft of the main fleet, sometimes it will perform one-time charter flights on the order of corporate clients.
The airline’s fleet also consists of five medium-haul Boeing 737-800s (189 seats) and two medium-haul Boeing 737-700s (144,149 seats).
SkyUp Airline LLC was registered in Kyiv in June 2016.

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KUSTO AGRO WANTS TO EXPAND GRAIN CARRIER FLEET

Kusto Logistics, part of Kusto Agro PTE. Ltd. (Singapore) has acquired 25 grain hoppers and plans to expand its fleet to 70 hoppers by the end of this year.
“Now the total fleet of the company’s wagons is 45 units. It is planned to purchase another 25 grain hoppers [by the end of 2019],” the company told Interfax-Ukraine.
As reported, Kusto Agro acquired Lischynske LLC and Tereschenko Agrarian Fund LLC in Zhytomyr region from France’s AgroGeneration with assets in Ukraine.
Kusto Agro is part of the international holding Kusto Group (Singapore), which develops business in oil, energy, agricultural, construction and other industries. Kusto Group implements projects in Ukraine, Russia, Kazakhstan, Georgia, Turkey, Vietnam, and China.
In Ukraine, the company’s land bank is 12,000 hectares in the Vinnytsia, Zhytomyr, and Khmelnytsky regions. In addition, Kusto Agro owns three silos with a total storage capacity of 90,000 tonnes. The group also has about 600 heads of dairy herd.
According to the information on the group’s website, Kusto Agro plans to create a land bank for crop production of at least 100,000 hectares over the next five years.

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