Oleksandr Kubrakov: We attract investments in port infrastructure due to reduction of dividends and concession projects

The Minister of Infrastructure of Ukraine Oleksandr Kubrakov spoke about the plans for the development of the port economy of Ukraine. This took place at a meeting of the National Reform Council chaired by President of Ukraine Volodymyr Zelensky - July 30,2021 "In the next 5 years, about UAH 17 billion of capital investments are needed to upgrade Ukrainian ports. This is a strategic infrastructure, the development of which is the responsibility of the state. At a time when the port infrastructure of the EU and our other neighbors is subsidized by the state, for years we not only did not support, but also took into the state budget funds that should be used to maintain and develop infrastructure. As a result, the degree of deterioration of port infrastructure reached a record 80%. Therefore, we initiated a change in dividend policy - reducing payments from USPA and state stewards to the state budget to 30%, now - is 80% of profits after paying all taxes. Such changes will cover more than half of the need for capital investment, which will give impetus to the development of international trade and the economy as a whole. We also use different scenarios of interaction with investors, the most priority of which is the concession, "said Alexander Kubrakov. What changes does the industry need? 1. By the end of the year, the transfer of Olvia Stevedoring Company and Kherson Sea Commercial Port to the concession will be completed. Currently, the implementation of the concession agreement is complicated by bureaucratic procedures. International experience needs to be implemented to simplify the process of transferring concession facilities to an investor. 2. Together with the Office of Simple Solutions, work is underway to develop comprehensive permits for the construction of port infrastructure facilities and their maintenance. This will be an additional incentive for investors to enter the Ukrainian market. 3. Necessary changes also in the lease legislation. We are talking about extending the lease term for existing port operators, in order to make additional investments. In particular, due to the imperfection of the legislation, it is known that about $ 100 million of investments in the port industry have not been received. 4. A systematic approach is being introduced - due to the parallel development of both port and port infrastructure of state stevedores, in particular railway and road: By the end of this year, a number of measures will be taken to modernize the Yuzhny Sea Commercial Port, simultaneously with the completion of laying and electrification of the railway tracks of the Black Sea - Berehovo section. This will significantly increase the capacity of the state stevedore. The construction of 5.3 km of the highway connecting M-28 Odessa-Yuzhny with the Odessa seaport is underway. The route will be a free alternative to the existing one, passing through the territory of a private company. Projects for the development of port and railway infrastructure in the ports of Chernomorsk, Mykolayiv, and Mariupol are also being implemented. Source: Government of Ukraine

Oleksandr Kubrakov: We attract investments in port infrastructure due to reduction of dividends and concession projects

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Oleksandr Kubrakov: We attract investments in port infrastructure due to reduction of dividends and concession projects

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All news

Port of Murmansk acquired Tuloma Marine Terminal

Unexplained explosions near main Arctic naval base of Russia’s Northern Fleet

Oil keeps leaking from sunken Russian tankers near occupied Crimea

DP World issues a “blue bond” in the Middle East

Turkey’s STM to build two ships for Portuguese Navy

Our Expert Analysis

Latest Free Reads

Top Ports