Today, December 13, Minister of Infrastructure of Ukraine Vladyslav Kryklii took part in the presentation of the report "Approximation to the Port Landlord Model in Ukraine" and the concept of the corporate strategy of SE "Ukrainian Sea Ports Authority" (USPA) till 2025 held in Kyiv.
The event was attended by Baher El-Hifnawi, Program Leader for the World Bank’s Infrastructure and Sustainable Development programs in Belarus, Moldova and Ukraine, Yurii Kisiel, Chairperson of the Verkhovna Rada of Ukraine Committee on Transport and Infrastructure, Raivis Veckagans, Head of the USPA, MPs, and representatives of the port industry.
The Minister thanked foreign partners and lawmakers for the consistent support of the Ukrainian infrastructure sector’s reform and noted that for the first time in the last 10 years, the volume of transshipment of cargo in the seaports of Ukraine has exceeded 150 million tons: "Ukrainian seaports possess great potential for development and attraction of cargo flows. Therefore, we have ambitious plans to reform our transport infrastructure. Our goal is to create a competitive and efficient market with transparent operating conditions for port operators. In September, we gave a green light to pilot concession competitions for the seaports of Olvia and Kherson. On December 9, we announced the results of the receiving applications from those wishing to participate in a tender for the concession of the Kherson Sea Commercial Port. We have 4 applications which is an indicator of high investor interest. Competition in concession tenders in Ukrainian ports is beneficial for both ports and the state."
The Minister of Infrastructure also announced that on December 17, 2019, the competition participants for the concession of Olvia seaport will be announced, and in January 2020 the winners of the concession tenders for the seaports of Olvia and Kherson will be unveiled. "In addition to the two above mentioned ports, we are planning to hold concession tenders for the ports of Mariupol, Berdyansk, Chernomorsk and Odesa. The Government's position is clear - establishing mutually beneficial cooperation between the state and private business."
Vladyslav Kryklii noted that the Government continues to determine borders of seaports. Thus, in the fall of 2019, the Government adopted a decision on the boundaries of the territory and water area of the Mariupol seaport. According to him, the determination of borders of other seaports is planned in the near future.
The Minister of Infrastructure stressed that in order to improve the efficiency of management of state assets in November 2019, the Ministry of Infrastructure promulgated a bill "On corporatization of the "Ukrainian Sea Ports Authority". "This decision will allow to conduct a reorganization of the state enterprise into a joint-stock company in the future. The draft of the corporate strategy of the USPA till 2025 envisages approximation to a port landlord model that is a recognized port management model in the world. This will contribute to the country's economic growth and the effective mobilization of private sector investment. The Ministry of Infrastructure supports this initiative. "
Vladyslav Kryklii thanked the Verkhovna Rada of Ukraine Committee on Transport and Infrastructure and its Chairperson Yurii Kisiel for fruitful cooperation, and expressed hope that the bill on inland waterways will be shortly considered by the Parliament.