Memorandum of intent of ArcelorMittal Kryvyi Rih to invest in the port industry inked at Ministry of Infrastructure

On August 13, Kyiv hosted a ceremony of signing a Memorandum of intent of a leading steel enterprise ArcelorMittal Kryvyi Rih to participate in operation and infrastructure development of the Oktyabrsk Specialized Sea Port in Mykolayiv. In the event were taking part Infrastructure Minister Andrii Pyvovarsky, Deputy Infrastructure Minister Yurii Vaskov, CEO of ArcelorMittal Kryvyi Rih Paramjit Kahlon and director of the Oktyabrsk Specialized Sea Port Olexandr Basiuk.  

By signing the document ArcelorMittal Kryvyi Rih company confirms their intention to create a stevedoring company on the basis of several berths of the Oktyabrsk Specialized Sea Port under lease.

“During recent several months it is already the second global company which officially declares its readiness to invest in Ukrainian ports. State port infrastructure in Ukraine is developed but it wasn’t being restored for a long period of time. The level of exhaustion often exceeds 80% and state has no money enough for restoration. That’s why it is important to allure investments first of all from the companies-cargo owners, which will help to ensure necessary modernization of the objects of state infrastructure and its efficient usage. For ports that will mean stable capacity utilizations, highly-paid working places and for state – more port duties and taxes to the budget”, stressed Andrii Pyvovarsky.

The next step after signing of Memorandum will be competition conducted by State Property Fund of Ukraine. For participation in competition concerned companies will submit technical and economical grounds of investment projects offered by them and according to the result of its assessment the tenant will be determined.

Paramjit Kahlon, CEO of PJSC ArcelorMittal Kryvyi Rih said: “Export logistics of PJSC ArcelorMittal Kryvyi Rih directly connected to Mykolayiv region, from where the company ships nearly 65% of cargos abroad. The appearance of inception point in Oktyabrsk port will allow us redistribute cargo flow and also to allure transit steel products cargos from other CIS countries. In such a way we will ensure timeliness and safety of shipping of our products on export directions”.

Signing of Memorandum implies passing of part of port’s capacities for long term lease on competitive basis. Investors from their side pledge to conduct reconstruction and modernization of leased infrastructure objects. According to the document that personnel who will be transferred from SC Specialized Sea Port Oktyabrsk for serving of leased capacities will be assigned by adequate social guarantees.

Implementation of measures enlisted in documents is planned to be completed during the year after its signing.