The European Bank for Reconstruction and Development (EBRD), following the results of a tender, has attracted the National Law Center for Inter-American Free Trade (NatLaw) as an external adviser for the development of the warehouse receipt market in Ukraine.
The press service of the National Commission on Securities and the Stock Market said the regulator and NatLaw this week will hold a number of meetings with representatives of the capital market and specialists of state bodies to discuss supervision over the circulation of warehouse receipts in Ukraine, the certification and standardization of activities of depositories, the formation of guarantee funds, etc.
“Following the meetings, proposals will be developed to improve the legislation on warehouse receipts and recommendations how to improve the effectiveness of such a system will be made,” the document says.
The regulator said the system of warehouse receipts is a very important element in the efficient functioning of commodity exchange markets. At the same time, this instrument currently has limited application in Ukraine due to its functional shortcomings and is used only in the agricultural sector.
NatLaw is an American non-profit organization. In particular, it is engaged in providing consultations on regulatory reforms.
The ZAMMLER Group (Ukraine), providing transport and warehouse logistics services, plans to implement a project to build a warehouse complex in three stages near Kyiv with gross area of 60,000 square meters, Director of ZAMMLER Group Viktor Shevchenko has said.
“We expect to take a loan from a Ukrainian bank this year to build a warehouse in three stages. It is economically easier and more expedient from the point of view of the gradual moving of our clients. Now we are actively working on the issue of buying a land parcel for the construction site – after settling this issue it would be possible to talk about the loan in details,” he said in an interview with Interfax-Ukraine.
Shevchenko said that the company is also negotiating with the European Bank for Reconstuction and Development (EBRD) on project financing.
According to him, at present the cost of building a class A warehouse in Ukraine costs about $500 per square meter, while the average purchase price of the finished warehouse after the crisis has not changed and now is $300-350 per square meter.
“But at the same time everything that is offered on the market is more than 10 years old and requires renovation. If the owner of the facility is a developer, then he still cares for it, but if it is a bank, then in the warehouse was repaired two or three years ago. Therefore, it is often necessary to add about $200 per square meter for renovation to the selling price, which results in the same $400-500 per square meter. Besides, you invest them in the old building,” he said.
The ZAMMLER Group incorporates Zammler Ukraine (Kyiv), Zammler Warehouse LLC (Martusivka, Kyiv region), Zammler Fulfilment LLC (Krasylivka, Kyiv region), MLS LLC (Kharkiv), Ningbo Zammler Trading Co LTD (China) and ZAMMLER POLSKA Sp.z o.o. (Poland).
The group provides services in the sphere of transportation by road, by rail, by sea and by air, customs clearance services and a full range of warehouse services.
Nova Poshta (Kyiv), the leader of express delivery in Ukraine, in partnership with private co-investors is implementing a project on construction of a new logistic terminal of class A with gross area of 3,200 square meters in Chervonohrad (Lviv region).
“The Nova Poshta company gave us all terms of reference and requirements [to the facility], and we designed the facility and are building it. Then we will lease the premises to Nova Poshta. Decoration works inside the warehouse are being done. I think that in two or three months the facility will be launched,” the head and co-investor in the project Nazariy Bilobran told Interfax-Ukraine.
He said that the new warehouse of Nova Poshta will be located on two parcels of 0.8 ha (0.5 and 0.3 has) at 1 and 1B, Kopernik Street in Chervonohrad.
“The logistic terminal will be designed for reloading goods. There will also be a Nova Poshta branch, a client zone. This will be the third warehouse in Lviv region that will cover the northern part and probably part of Volyn region. Local business is carrying out all works to build the facility, taxes will be paid to the city budget,” Bilobran said.
According to Bilobran, this facility will become the second logistic terminal realized for Nova Poshta: in 2017 a similar project was constructed in Stryi (Lviv region).
Nova Poshta told Interfax-Ukraine that the company plans to build new terminals in partnership with developers.
“This year, Nova Posta is building a Khmelnytsky terminal, for which the EBRD has provided a loan. Other terminals will be built in partnership with developers, in particular, they have already begun to build in Lviv region and we are now in the process of negotiations with developers in Kharkiv,” the press service said.