In the first half of 2018 seaports handled 63.8 million tons of cargo – the actual data of USPA

From January to June 2018, Ukrainian seaports handled 63.8 million tons of cargo, which is 3.1% less compared to the same period in 2017. The reasons for decline – off-season for the agrarians, which affected the volumes of grain cargo, and the shortage of wagons for ore. The decrease in cargo turnover in the seaports of Ukraine occurred according to two main types of cargo — grain and ore. The decrease in grain export (-10.3%) was due to a decrease in trade activity in the off-season and a high level of competition. The growth of grain transshipment in Ukrainian ports traditionally begins in July. The decrease in volume of ore exports in the first 6 months of 2018 was 26.5%. The largest decline in ore transshipment in general is recorded in Yuzhny seaport on two terminals — TIS-Ore (-34.9%) and SE “YCSP” (-20.8%). The reason for such a significant decline is the severe shortage of rolling stock (locomotives and wagons) provided by Ukrzaliznytsia, as stated by the Ukrmetallurgprom industry association. Thus, the transshipment of export cargo amounted to 46.1 million tons, which is 8.9% less compared to the same period of the previous year. The highest growth was recorded in ferrous metals 8.1 million tons (+ 16.5%), including 4.8 million tons of rolled metal (+ 3%) and 1.6 million tons of cast iron (+ 66.5%). Transshipment of import cargo increased by 18.7% and amounted to almost 11 million tons, against 9.2 million tons in January-June of 2017. Positive dynamics on imports shows such cargo as ore (+ 19.7%), transshipment of which amounted to 3.7 million tons and coal — 2.8 million tons (+ 10.7%). The cargo turnover of transit cargo in comparison with the period of the last year increased by 7.9% to 5.8 million tons. At the same time, there is a drop in transit supplies of coal, since shipments to Ukrainian ports have not been made over last three months. In the first half of the year, handling of cargo in containers increased in the seaports of Ukraine. During the reporting period, it amounted to 391 thousand TEU, which is + 11% compared to the same period of the previous year. Since the beginning of 2018, Ukrainian seaports have handled 5,848 vessels, which is 176 units or 3.1% more than in the same period in 2017. Also from January to June 2018, 177 272 passengers were transported (local – 154 128 and foreign passengers – 23 144). Most passengers used the services of water transport in ports of Odessa and Kherson. Mainly it is sea walks and internal transportation. Foreign passengers arrive to Ukrainian ports mainly by cruise vessels. The development of navigation on the Dnieper River continues. In the first half of 2018, 5 785 vessels’ passes were performed here, which is 533 units or 10.1% more than a year ago. A total of 2.96 million tons of cargo were transported along the Dnieper. 445.7 thousand tons of metal products (-0.9%), 799.8 thousand tons of grain (-12.4%), 27 thousand tons of oil products (+ 20.5%) and almost 1.7% million tons of building materials (+ 39.5%) and other cargo. With a full overview of cargo turnover for January-June 2018 in the context of the nomenclature of goods and ports, please click on the link. Information on transportation of passengers is available here. To see the data on movement of vessels and transportation of cargo on the Dnieper River for the reporting period, click on the link.

Black Sea ports signed an action plan to revive cruise shipping for the next 3 years

During the 52nd General Assembly of the Association of Mediterranean Cruise Ports (MedCruise), which took place in Valletta, Malta on May 23–26, 2018, the Black Sea ports signed an action plan of the revival of cruise shipping for the next 3 years. The delegation of the State Enterprise «Ukrainain Sea Ports Authority» included the deputy chief of the Odessa port for operating activities Ruslan Sakhautdinov, the head of the cruise infrastructure service Oleg Fetisenko and the specialist of the department of strategic planning and development Mariia Luzhanska. This action plan was supported by the president of the MedCruise Ayran Pastor, and also by the head of the Black Sea region, Theodor Patrici. This plan considers the joint application of Black Sea ports to cruise lines with the aim of reporting about safety in the Black Sea region and readiness to receive passenger ships, working meetings and Black Sea conference in 2019, including the Black Sea region in the marketing plan of MedCruise for the next year etc.. Despite the absence of cruise ships, the modernization of Odessa Passenger Terminal was carried out: internal premises were repaired, the kinetic facade was equipped. — Development of passenger and cruise traffic is among our priorities. SE «USPA» reconstructs passenger terminals and marine stations in order to provide safe conditions and high-level service for passengers. Active marketing position of Ukrainian ports is necessary to attract cruise ships. We believe that the return of cruise shipping to Odessa seaport will take place in the near future. Foreign tourists are interested in the Ukrainian tourist product, as evidenced by the increase of the number of river cruise ship calls to Ukrainian ports (Odessa, Ust-Dunaisk, Izmail) – commented by the Head of SE “Ukrainian Sea Ports Authority” Raivis Veckagans During the General Assembly, the delegation of the State Enterprise «USPA» held meetings with top managers of cruise companies (Royal Caribbean Cruises, Carnival Corporation, AIDA Cruises, etc.) and presented a positive dynamics of the tourist flow in Odessa. The next 53rd General Assembly MedCruise will be held in Burgas (Bulgaria), which will positively affect the image of the Black Sea region. Reference MedCruise is the largest association in the world, which unites cruise ports of the Mediterranean Sea and other, as well as cruise companies. There are many different new members of MedCruise every year Every year.

ESPO welcomes the Ukrainian ports as observer member

The Ukrainian Sea Port authority (USPA) is joining ESPO as an observer member. This follows a decision of the General Assembly of ESPO, who gathered yesterday for their assembly and for the annual conference in Rotterdam.“We are very pleased to welcome USPA as an observer member in ESPO. The Black Sea is a very important part of Europe’s maritime network with ESPO member ports in Romania and Bulgaria. The Ukraine’s Association Agreement with the EU, including the Deep and Comprehensive Free Trade Area, make Ukraine’s ports an important part of the wider European transport network. USPA’s membership of ESPO is a logical consequence of the Ukraine’s strong relationship with the EU. There are already excellent working relationships between ESPO members and Ukrainian ports and I am delighted now to welcome USPA as an observer member in our organisation strengthening ESPO’s presence in the Black Sea” says ESPO Chairman, Eamonn O’Reilly.«USPA is honored to join ESPO. Since signing the Association Agreement between EU and Ukraine, we have focused on connectivity of our transport infrastructures. Through the observer membership at ESPO, USPA is continuing governmental efforts to establish mutually beneficial cooperation with the European counterparts. We are glad to join European port community and are keen to actively participate in the forming the future agenda of the port&maritime industries.» says Raivis Veckagans, CEO of USPA.“I am looking forward to work with the Ukrainian ports, to inform them about the EU policy on ports, to exchange good practices and challenges and to integrate them in our network of port professionals”, adds Isabelle Ryckbost, ESPO’s secretary General.

USPA has launched Investportal

The Ukrainian Sea Ports Authority (USPA) has created and launched a special resource for investors, which provides full information on implemented and prospect projects in the ports of the country — This was announced by the Head of USPA, Raivis Veckagans, at the Ukrainian Ports Forum-2018. «The Investment portal of USPA is specifically designed to attract investors to Ukrainian ports. This website brings together all the information that is necessary for private investors to make a decision and to help state-owned companies — for qualitative work with potential investors»,— said Raivis Veckagans. The Investment portal was created by USPA in order to present infrastructure projects in the Ukrainian port industry and attract potential investors to the port infrastructure. The target audience of the resource is investors who are interested in developing their business in Ukrainian ports and want to find partners for joint implementation of projects. For them, the Investment portal offers many opportunities. Firstly, the site contains complete and up-to-date information on Ukrainian seaports (cargo turnover, cargo nomenclature, berthing and access infrastructure, depth, etc. in the context of each port). Thus, a potential investor can compare, analyze, and select a port that meets his requests. Secondly, the site contains data on infrastructure projects that are already being implemented on the territory of Ukrainian ports. These projects may be at different stages of implementation, but still open for investments. The Investment portal is a dynamic interaction tool. The feature of the site is that any company interested in business development in the seaports of Ukraine can place its project on this web resource to find potential investors. To do this, you need to contact USPA (the contacts are listed on the site) to upload information about the project. Large-scale public procurement services, customer of which is USPA, will be also highlighted on the Investment portal. This will help to bring even a wider range of international and national contractors to implement infrastructure projects in the seaports of Ukraine. In addition, the site contains recommendations on the mechanisms of investment in the maritime industry and the current legislation regulating business activities in ports. To recall, Ukrainian Ports Forum-2018 for the first time was held on 31st of May in Odessa, organized by USPA and Center for Transport Strategies.

Ukraine Launches Urgently Needed Port Sector Reforms

On the heels of the Ukrainian Port Forum-2018 on May 31st, the flagship event for Ukraine’s port infrastructure development, the country has launched a new World Bank supported technical assistance funded by the Public-Private Infrastructure Advisory Facility (PPIAF)to help position the port sector for more private investment. With its geographically favorable location at the crossroads of Europe, Asia, and the Middle East and its large and rapidly growing grain and agricultural outputs, Ukraine seeks to improve its logistics sector and facilitate more international trade. One piece of this puzzle requires urgent modernization of Ukraine’s 13 seaports and an overhaul of the current outdated port management model. The technical assistance launched this week will help Ukraine identify key areas to focus on as it proceeds with reforming its port sector. The assistance will deliver a review of port sector legislation, an assessment of the current state of port infrastructure, and a review of the current governance structure, along with a roadmap to help move the sector to a full landlord model. Ukrainian Sea Ports Authority CEO, Raivis Veckagans, notes that “Sea port reform has been ongoing since 2013 with the separation of operational and administrative activities. Since that time Ukrainian Sea Ports Authority has set ambitious goal to significantly increase current handling of 130 million tons of cargo per year, achieve European standards of service, and promote Ukraine as an important player on existing and emerging global trade routes. We believe that reform of port management being launched next week with the support of World Bank and PPIAF will enhance opportunities to increase private participation and attract leading global players to achieve these goals”. Juan Gaviria, Practice Manager for Transport in Europe notes that “The World Bank has a substantial advisory services and investment portfolio across all transport sectors in Ukraine supporting the Logistics Strategy and Action Plan; ports, inland water transport, railways modernization, road corridor prioritization and strategic investment. We recognize the importance of improving the port sector to better connect to the other modes of transport and foster greater trade and promote inclusive economic development”. PPIAF Program Manager, Francois Bergere notes that “attracting private investment into infrastructure requires putting the necessary ‘upstream’ institutional conditions in place. We have been providing support to Ukraine’s transport subsectors over the past few years to help foster such an environment favorable to private investment and are happy to continue this work in Ukraine’s port sector, where there seems to be a lot of momentum.” The Public – Private Infrastructure Advisory Facility (PPIAF) is a multi-donor technical assistance facility that is financed by 11 multilateral and bilateral donors. Established in 1999 as a joint initiative of the governments of Japan and the United Kingdom, working closely with and housed inside the World Bank Group, PPIAF is a catalyst for increasing private sector participation in emerging markets. Its mission is to help eliminate poverty and increase shared prosperity in developing countries by facilitating private sector involvement in infrastructure.



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