Ukraine’s Chornomorsk Port to boost its competitiveness with a PPP – EBRD and IFC assist

Chornomorsk, Ukraine (PortSEurope) October 22, 2021 - The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) are supporting the Ministry of Infrastructure and the Ukrainian Sea Ports Authority (USPA) in structuring and tendering a public-private partnership (PPP) to modernise Chornomorsk (Chernomorsk) Port. Private sector-led investment and modernisation of the port, located on the north-western shore of the Black Sea could increase Ukraine's import and export capacity, boosting its trade competitiveness and economic growth. The EBRD and IFC will help the Ukrainian government to prepare a comprehensive contractual framework, set bidding criteria and tender rules, and liaise with potential investors, paving the way for a successful tender. Minister of Infrastructure Oleksandr Kubrakov said: "Regarding the development of ports, we focus on working with investors. Our partners, IFC and the EBRD, provide full support to this process. Chornomorsk Port is the third-largest in terms of cargo volume in the country, so this concession project is especially important. In Ukraine, container transport has great potential for development, as it currently accounts for only 8.5% of the total cargo volume. After finding an investor for the Chornomorsk Port and modernising the container terminal, it should be possible to almost double its capacity. This will be a powerful stimulus for the development of the region's economy and increase the competitiveness of Ukraine as an infrastructure hub”. The Chornomorsk container terminal and railway-ferry complex concession will help develop existing assets, improve and optimise its operations and develop additional services for carriers and cargo owners. Improving the port by optimising cargo logistics and providing higher-quality services is expected to boost the attraction of Ukraine to leading international shipping operators. The EBRD's engagement in Chornomorsk follows two recent successful tenders in the country's maritime infrastructure sector. In 2020, the bank - in partnership with IFC and the Global Infrastructure Facility - supported the Ministry of Infrastructure in structuring concessions for the ports of Kherson and Olvia, two mid-sized Black Sea ports. "The upcoming concession of the Chornomorsk port terminals is a huge step in the development of Ukraine's port industry, driving economic growth and increasing the country's competitiveness in the global market," said Mehita Fanny Sylla, IFC's Manager for the PPP in Europe. "The modernisation of Chornomorsk Port, along with the success of the concessions in Kherson and Olvia, will prompt the further private sector-led transformation of the sector". More PortSEurope news about the Port of Chornomorsk/Chernomorsk Other port developments Minister of Infrastructure, Vladyslav Krykliy said in October 2020: “Egis International consultants have already prepared the final pre-feasibility report of the Berdyansk Sea Commercial Port”. The concession tender for the Azov Sea port of Berdiansk (Berdyansk) may begin no earlier than the end of 2022, Anatoliy Timenko, Senior Project Manager of Maritime Reform at the Reform Support Team of the Ministry of Infrastructure, was quoted as saying by Ukrainian media. According to Krykliy, negotiations are underway with a potential private investor to develop a feasibility study for a concession in the Black Sea port of Odessa. The government has funding for the development of a pre-feasibility study for the concession of the Izmail seaport on the Danube river. There are plans for concession projects in Mariupol (Azov Sea) and Reni (Danube river) seaports and are currently seeking pre-feasibility study funding for these projects, but so far there is no investor interest. Three stevedoring companies could be privatised – Belgorod-Dniester Sea Commercial Port, Skadovsk Sea Commercial Port and Ust-Dunaisk Sea Commercial Port. Krykliy noted the Ministry’s PPP plans to develop high-quality and modern roads through the implementation of the Program for the Development of the Ukrainian Highway Network, which is currently being finalized with the participation of the World Bank and Global Infrastructure Facility. The program provides for the rehabilitation of more than 4,500 km of roads and attracting $9 billion investments from the private sector. Copyright (C) PortSEurope. All Rights Reserved. 2021.

Ukraine’s Chornomorsk Port to boost its competitiveness with a PPP – EBRD and IFC assist

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Ukraine’s Chornomorsk Port to boost its competitiveness with a PPP – EBRD and IFC assist

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