Ukrainian seaports increased cargo handling by 2.5 million tons in January-February

According to the results of two months of 2019, Ukrainian ports processed more than 23 million tons of cargo, which exceeds the figures for the similar period of last year by more than 2.5 million tons (or 12.5%). Enablers of such positive dynamics in cargo turnover were products of agroindustrial complex, metallurgical industry, container cargo and fertilizers. Thus, during January-February the volume of transshipment of grain cargo amounted to almost 8.5 million tons, which is 35.5% more than in 2018. Ore handling increased by more than a quarter (+ 25.8%) (4.6 million tons against 3.7 million tons in the first two months of last year). Almost 16% growth was demonstrated by oil — more than 1 million tons have already been transshipped. The growth trend of container cargo handling is stable: + 20.5 thousand TEU as compared to January-February 2018. Before the sowing campaign, there was an increase in imports of chemical and mineral fertilizers, both packaged and bulk. The total volume of their transshipment during the first two months of the year amounted to more than 350 thousand tons, which is more than twice the same indicator of the previous year. Just like in January, the growth of transshipment was primarily due to exports, the volume of which increased by more than 3.2 million tons (+ 21.5%) compared to last year, while imports and transit, on the contrary, decreased by 5% and 24% respectively. According to the results of two months, the absolute leader in the volume of cargo transshipment was the port of Yuzhnyi with 7.36 million tons, which is almost a quarter (+ 24.9%) more than in January-February 2018. Mykolaiv port almost reached the mark 5 million tons. Almost 4 million tons of cargo were processed in Chornomorsk and Odesa ports in two months: 3.99 million tons and 3.97 million tons, respectively. During January-February Ukraine's seaports processed 1726 vessels, which is 6.7% or 124 units less than last year. The leaders with the increase in the number of vessels are the same as in January — Chornomorsk, Olvia and Kherson. The services of water transport in the ports of Odesa and Chornomorsk for the first two months were used by 3159 passengers. Favorable weather conditions made it possible to carry out 53 vessels by the Dnipro River from the beginning of the year and transport 78,1 thousand tons of cargoes, mainly cereals — 66,5 thousand tons. The full review of cargo turnover in January-February 2019 with the nomenclature of goods and ports and in comparison with the same period last year can be found here. Passenger information is available at this link. Data on vessel transits and cargo transportation by the Dnipro River can be found here.

The second annual Ukrainian Ports Forum 2019 will take place in Odesa at the end of May!

On May 30–31, the main event of the port industry — Ukrainian Ports Forum 2019 will take place in Odesa. The international forum, first organized and conducted by the Ukraine Sea Ports Authority and the Center for Transport Strategies in 2018, becomes annual. Ukrainian Ports Forum is a live discussion of all topical port and near-industry issues with market participants, government officials, the international community, Ukrainian and foreign investors and financiers, experts and market analysts. The main topic of the Ukrainian Ports Forum 2019 will be joint projects of Ukraine with the EU on the development of TEN-T corridors, cumulative portfolio of investment projects in the port industry is estimated at 900 million euros. In accordance with the “Strategy for the Development of Sea Ports of Ukraine till 2038”, investments in the industry can reach up to 35 billion UAH. The central panel of the forum – a dialogue with representatives of the European Commission, IFIs, government and business about opportunities of Ukrainian seaports in a single logistics system of Europe and options for attracting funding and co-financing formats. We will discuss with Ukrainian and European experts the following issues: — Possibilities of the implementation of PPP projects in the port industry — The main trends in the handling of grain, container, general, bulk cargo in Ukraine and in the world. — Technical aspects of investment projects implementation We are also planning to hold several specialized events: — EBA conference on port industry lobbying — Traditional HR conference for port industry specialists — Workshop on digitalization of ports: modern technologies in the processing and handling of cargo, collection and analysis of information, provision of services — Round table on maritime security in ports The business program of the forum provides B2B meetings with leading Ukrainian and international companies and government representatives. See you at Ukrainian Ports Forum on May 30–31, 2019 in Odesa!

State Enterprise “Ukrainian Sea Ports Authority” welcomes the Government’s decision on the appointment of members of the Supervisory Board of the USPA

The Cabinet of Ministers of Ukraine at its meeting on February 6, 2019 agreed on the nominations of members and the Supervisory Board of the State Enterprise “Ukrainian Sea Ports Authority”. Wolfgang Hurtienne (Germany), Jan Van Shoonhoven (Netherlands), Patrick Verhoeven (Belgium) and Yulia Klimenko (Ukraine) became independent members of the Supervisory Board of USPA. Dmytro Barinov, Anton Yashchenko and Taras Trotsky will represent the state on the Supervisory Board. The winners of the competitive selection at the Government meeting were presented by the Minister of the Cabinet of Ministers of Ukraine Oleksandr Saenko, who is a member of the Committee for the appointment of managers and members of Supervisory Boards of state-owned enterprises that are especially important for the economy of Ukraine. “The formation of a Supervisory Board is an important step towards the implementation of a corporate management system in the public sector. It is very important for the USPA that the Supervisory Board consists of professionals with a good understanding of the specifics of the global port industry, experts who have extensive experience working with IFO, as well as implementing changes at the state level. I am confident that the existence of such a professional collegiate body will help increase the efficiency and transparency of our activities, bring the Ukrainian port industry closer to the best world standards and further integrate Ukraine into the EU. It will also allow cooperating on a qualitatively different level with the state, domestic and international partners — investors, financial organizations, and other port industry stakeholders. The Supervisory Board is a real “window of opportunities” that we all should use to develop the seaports of Ukraine. I hope for fruitful cooperation! ”, the head of the USPA Raivis Veckagans commented. At the conclusion of the formal appointment procedures, the USPA’s Supervisory Board will convene for its first meeting.

USPA Ownership Policy released

The Ministry of Infrastructure of Ukraine approved the Ownership Policy of the state enterprise «Ukrainian Sea Ports Authority», which defines the objectives of the enterprise, the principles and mechanisms of management of the company, and outlines the expected results of its activities in the medium term. USPA is the first national state-owned enterprise that received Ownership Policy. The document was formed on the basis of the developed by the Ministry of Economic Development and Trade «The main principles of the implementation of property policy in relation to economic entities of the state sector of the economy», which were approved by the Cabinetof Ministers in October 2018. "Approval of the Ownership Policy is an important part of the corporate governance reform of the USPA, which primarily aims at improving the efficiency and transparency of the enterprise's operations, its management of its assets and their rational use. The Ownership Policy defines the goals and priorities according to which the State owns the enterprise. In particular,— increase of competitiveness of sea ports of Ukraine in the Black Sea-Azov basin ",— commented the head of the USPA. The Ownership Policy clearly defines the key objectives of the USPA, dividing them into commercial (ship services and specialized services in seaports) and non-commercial (maintenance, efficient and safe operation and development of port infrastructure, organization and security navigation, ensuring compliance with the legislation on environmental protection, maintenance of declared depths, development and implementation of plans for the development of seaports, navigation support on-line excuse waterways, etc.). In addition, the Ownership Policy sets out the basic principles under which enterprise management should be implemented. Apart from already mentioned professionalism as the basis of this process, one of the most important is the principle of demarcation of the functions of the state as the owner and as a regulator: the state exercises control and regulation, however, it does not interfere with the operation of the business entity. The document stresses the need for further corporatization of the State Enterprise USPA by transforming into a joint-stock company, 100% of which shares will belong to the State. Particular attention is paid to issues of social responsibility — labor relations, ecology, and energy efficiency. The document complies with the world's leading practices, in particular, the OECD Guidelines for Corporate Governance of SOEs (Recommendations on Corporate Governance of State Enterprises of the Organization for Economic Cooperation and Development), taking into account the specifics of the activity of the AMU. The property policy project was developed with the advisory support of the reform support teams of the Ministry of Economic Development and Trade and the Ministry of Infrastructure of Ukraine. The order for approval and the document itself are published on the website of the Ministry of Infrastructure. Ownership Policy of the state enterprise «Ukrainian Sea Ports Authority»

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