In the framework of the Ukrainian Ports Forum 2019 events will be held for investors on pilot projects for concessions of state stevedores in seaports of Ukraine

A round table will be held in Odessa on May 31, during which investors and business representatives interested in participating in pilot concessions of government stevedores in the ports of Olvia and Kherson will have the opportunity to receive up-to-date information and answers to their questions from consultants and involved parties in projects. Also in the forum a series of individual meetings and consultations with representatives of investors will be held. Representatives of USPA, IFC, EBRD, PPP SPILNO, World Bank and European Investment Bank will discuss important issues of concession tenders and conditions for participation of interested investors in the framework of the round table «Pilot projects of public-private partnership in the seaports of Ukraine». Providing investors with timely information on concession projects directly from project developers will help ensure maximum transparency in the conduct of tenders and attract the maximum number of participants to their implementation. «I am convinced that, on the eve of the announcement of the first concession tenders, it is important to discuss in detail with potential investors and industry representatives the pilot projects and future concession plans at the seaports of Ukraine,» said Oleg Kudashov, Senior Investment Specialist at the International Finance Corporation (IFC). It is important to analyze the regulatory framework for PPP regulation, as well as focus on the practical issues of concession tenders that may arise from stakeholders." «On our part, we see the readiness of the Government of Ukraine, in particular, the Ministry of Infrastructure, and the Ukraine Sea Ports Authority for a constructive dialogue with businesses regarding finding the optimal concession model based on the balance of interests of all stakeholders, therefore we invite interested investors to an open discussion» — adds Mark Magaletsky, Head of the Infrastructure Sector in Ukraine, European Bank for Reconstruction and Development (EBRD). The round table will be held on May 31, 2019 at Bristol Hotel, Odessa in the framework of one of the most significant events of the Ukrainian maritime industry — Ukrainian Ports Forum 2019, which will take place in Odessa. The organizers of the forum are the State Enterprise «Ukraine Sea Ports Authority» and the Center of Transport Strategies.

Infrastructure Reform

The transport sector is among Ukraine's basic sectors of economy. The transport infrastructure has an extensive railway network, a well-developed highway network, sea and river ports (terminals), airports and a wide network of air destinations, freight and customs terminals. The future of the Ukrainian state and the well-being of its people depend on the operational performance and development of these services. More

The Supervisory Board of USPA started work

23.04.2019 On April 23, 2019, the first meeting of the Supervisory Board of the SE «USPA» was held. The members of the Supervisory Board elected the governing bodies and developed the work plan for the current year. Dmytro Barinov, the first deputy Chairman of the Maritime Administration, was elected a Chairman of the Supervisory Board of the SE «USPA». His deputy — Patrick Verhoeven (Belgium), who has held senior positions in international port organizations for the past 25 years. The Minister of Infrastructure of Ukraine Volodymyr Omelyan noted that the launch of the Supervisory Board of Ukrainian Sea Ports Authority is an important step towards the implementation of corporate governance standards in a state-owned company. The Minister also stressed that he personally will comprehensively contribute to the work of the Supervisory Board of the enterprise and support initiatives to further implement the European experience in managing the port industry in Ukraine with a clear step-by-step plan. “The USPA hopes for fruitful cooperation with members of the Supervisory Board in such important areas as corporatization of the enterprise, continuing the port industry reform towards the landlord-port model, the driver of which was and remains the USPA. The experience of the members of the Supervisory Board will also be very useful for increasing transparency in interacting with customers and the effectiveness of the management system, as well as strengthening the position of the company on the international arena.”, — the Head of the USPA, Raivis Veckagans commented on an important event in the history of the company. At the first meeting, the members of the Supervisory Board signed contracts with SE “USPA”, formed audit committees, as well as the appointment and remuneration of officials of the company. The next meeting will be held in a month during the traditional Ukrainian Ports Forum in Odesa, the organizers of which are the Ukrainian Sea Ports Authority and the Centre for Transport Strategies. “The first meeting of the Supervisory Board, in my opinion, was very effective. The Chairman and deputy were elected, mandatory committees were formed. This gives us an opportunity to fully participate in cooperation with the company. For the USPA, further implementation of corporate governance standards will make the enterprise management system more transparent and understandable for international partners. This will open up new opportunities to attract funds and investments.”, — the newly elected chairman of the USPA Supervisory Board Dmytro Barinov summarized. Reference: According to the charter of the SE «USPA» and the Regulation of the Ministry of Infrastructure of Ukraine on the Supervisory Board of the SE «USPA», the Supervisory Board is the body that regulates the activities of the Head of SE «USPA», evaluates proposals for the development of the enterprise in accordance with the current legislation, as well as activities of SE «USPA». The USPA Supervisory Board includes four independent members, namely Wolfgang Hurtienne (Germany), Jan Van Shoonhoven (Netherlands), Patrick Verhoeven (Belgium) and Yulia Klymenko (Ukraine), as well as three state representatives — First Deputy Chairman of the Maritime Authority Dmytro Barinov, Executive Director of the Reform Office of the CMU Anton Yashchenko and Advisor to the Minister of Infrastructure of Ukraine Taras Trotsky. The decision on the coordination of the members of the Supervisory Board of the State Enterprise «USPA» was adopted by the Cabinet of Ministers of Ukraine at its meeting on February 6, 2019. A preliminary selection of independent members was carried out by a branch of an international search and selection company for Boyden Global Executive Search — Boyden Ukraine. In general, 85 candidates from 16 countries submitted documents to the competition for the selection of independent members of the USPA Supervisory Board.

The Agreement on long-awaited dredging in the port of Mariupol is signed

April, 26, 2019. The Ukrainian Sea Ports Authority has signed an agreement to carry out an operational dredging in the port of Mariupol with «Specialized Technical Bureau Azimut» LLC. The work involves the restoration of passport depths on the approach channel and port water area. "Only last year Mariupol port provided transshipment of almost 6 million tons of export cargo. The export supply of Ukrainian enterprises in the east of the country depends on his work. Therefore, the deepening of our ports at Azov is a vital step. Today's event has become possible, in part, thanks to the strong international support received by Ukraine in view of the difficult situation on Azov ",— the Head of Ukrainian Sea Ports Authority emphasized. «STB „Azimut“ LLC offered the lowest price to the volume of work according to the terms of the competition and became the winner of an open tender, which the branch “Dredging Fleet” of the State Enterprise „USPA“ held in the electronic system of public procurement “Prozorro”. Three out of seven companies that applied for the tender were admitted: „Ukrstroyservis“ LLC (Ukraine), Consal S. R.L. (Romania), «Specialized Technical Bureau „Azimut“ LLC (Ukraine). The savings on the basis of open bidding amounted to 20% of the starting price, which was set at 460 million UAH (without VAT). The contractor has to perform a dredging in the port of Mariupol in the amount of 1.98 million cubic meters. The main works (1.87 million cubic meters) will need to be performed at the Coal Harbor approach channel and 115 thousand cubic meters — in the water area of the port. In 2017–2018, the Ukrainian Sea Ports Authority announced tenders for dredging in Mariupol and Berdyansk for the restoration of passport depths and enhancement of the competitiveness of the ports of Azov five times. However, the winners could not be determined due to the lack of participants in the auctions. Therefore, works at these ports were carried out by the vessel of SE „USPA“ — the „Meotida“ dredging vessel. Last year, it completed the largest volumes of work among the fleet of the state enterprise. But its capacities were not enough to restore passport depths in the two ports of Ukraine on the Azov Sea. Therefore, the involvement of the fleet of the contracting organization was a priority task for the USPA. The Agreement was signed by Andrii Yevtushenko, deputy head of economics and finance of the branch “Dredging Fleet” of the State Enterprise „USPA“, and Oleksandr Bloshenko, Director of “Specialized Technical Bureau “Azimut” LLC. Reference: The Mariupol Sea Port can receive vessels with a draft of 8 m. The length of the approach channel of Mariupol Port is 18 km, the width is 100 m., the annual sediment accumulation of the channel and water area – 874 thousand cubic meters per year. The project depth at the berths of the port is from 8 to 9,75 m, the approach channel is 9,15 m, the water area is 9,75 m. Currently the passage of vessels serviced in the Mariupol Sea Port is reduced from 8 m to 7.7 m. Decreasing the depths on the approach channels of the port leads to a shortage of vessels, which causes considerable economic losses for the port authority, stevedoring companies, cargo owners. This leads to a reduction in the level of cargo handling and is reflected at the level of incomes received from port fees and specialized services (port operator access to the berth). Underloading due to reduction of passage draft by 30 cm makes from 1 to 5 thousand tons per vessel. In 2018, the cargo handling at the Mariupol Sea Port at depths of 7.7 m was 5.8 million tons, and at depths of 8 m, the cargo handling could be about 6.5 million tons.

The Ukrainian Ports Forum 2019 will create a location for B2B discussions

The business component of the Ukrainian Ports Forum 2019 in Odessa has been replenished with a special B2B session, which will be held on the second day of the forum on May 31. The new format involves organizing a series of discussions and meetings between representatives of foreign and Ukrainian companies. «The B2B session will allow the forum participants to move from discussing global trends that affect the development of the port industry in Ukraine and the world to address the business challenges they face, taking into account the information received on the first day. Already about 8 companies have declared their readiness for discussions. These are international corporations, manufacturers of equipment, digital solutions for the port industry and investors» – Head of Organizing Committee of UPF 2019, Head of USPA Raivis Veckagans commented on the addition of the Forum’s program.Within the framework of the special business session, presentations of participating companies will be presented, as well as a series of discussions on the one on one format. Registration for discussions continues on the Forum’s website with the following companies: — TechAgro — Siemens — JCB — Arcelor Mittal — P&O Maritime — MTBS — Cargo X — Reni Sea Port Authority — LLC «Orlovka Ferry Complex» The B2B session can be expanded upon the invitation of representatives of government authorities and international experts in the port industry. Follow the announcements.



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