Analysis – Impressive ports concession drive by Ukrainian government

Odessa, Ukraine (Ports Europe) February 20, 2020 – After the successful tendering of the Black Sea ports of Olbia (Olvia) and Kherson, the Ukrainian government is gearing up to offer concessions for part of Ukrainian largest port of Odessa, for the ferry service at the port of Chernomorsk, both at the Black Sea, and for the Azov Sea ports of Mariupol and Berdyansk. The total amount of investments in the development of Kherson and Olbia ports in the next five years is expected to be UAH 3.7 billion (€140 million). The winner of the concession for Olbia port, QTerminals, is a Qatari terminal operating company jointly established by Mwani Qatar (51% shareholding) and Milaha (49%) to provide container, general cargo, Ro-Ro, livestock and offshore supply services. QTerminals is expected to invest UAH 17.3 billion (€654.2 million) for the 35-year concession of Olbia port, located in the estuary of Southern Buh River, granting access to the Black Sea and Ukrainian hinterland. It is situated close to the country's key agricultural and metallurgy regions. This is the largest foreign direct investment in the Ukrainian port industry since country’s independence in 1991. The investment will be used for upgrading infrastructure and port development. During the first three years of concession, a new grain terminal with a capacity of 2 million tons/year is planned to be built in Olbia. The winner of the concession tender in the port of Kherson in the delta of Dnieper river, Risoil-Kherson, will invest UAH 300 million (€11.3 million) in the development of the port over four years, which is 40% more than set by the requirements of the concession tender competition. The Geneva-based Risoil is operator of the logistics of vegetable oils, bulk and general cargoes in the ports of the Black Sea. It is expected to invest UAH 1.4 billion (€53 million) for the 30-year concession of Kherson port development. The Kherson seaport will go through urgent asset renewal in the first few years. The Ukrainian city of Chornomorsk, where the port is located, used to be named Illichivsk/Illichevsk, but due to decommunisation laws Chornomorsk gained its current name in February 2016. The port is only 30 km south of Odessa. In Chornomorsk, the concession will only be for ferry services. In another, yet unnamed Black Sea port, the investors will be offered a concession for a container terminal. In the deep sea port of Odessa, investors will be offered the passenger terminal and hotel. According to statements of Ukrainian Infrastructure Minister Vladyslav Kryklii, key investment objectives of the government is the concession of infrastructure facilities, in particular seaports. His Ministry of Infrastructure is also working on plans to finance an unprecedented volume of reconstruction and repair works of highways, on projects of concessions of roads, regional airports and railway stations. Copyright (C) Ports Europe. All Rights Reserved. 2020.

Analysis – Impressive ports concession drive by Ukrainian government

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Analysis – Impressive ports concession drive by Ukrainian government

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