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The Ukrainian Sea Ports Authority (USPA) is one of the largest state enterprises, which has strategic importance for the economy and security of Ukraine.

The USPA was founded in 2013 as a result of the maritime industry reform of Ukraine to manage state property in the seaports and to use it efficiently, create mechanisms to attract investments in the port infrastructure for its development and stable business performance. There are other tasks of the USPA, like maintenance of the passport depths of the ports’ water area and ensuring safety of navigation, etc.

The USPA is part of the management of the Ministry of Infrastructure of Ukraine and unites Ukrainian seaports and other infrastructure objects, contributing to the development and competitiveness of each of them. The structure of the enterprise consists of the head office in Kiev and the main representative office in Odessa, Delta-pilot and Dredging fleet branches and 13 branches in the seaports of Ukraine:

Industry News

The transport sector is among Ukraine's basic sectors of economy. The transport infrastructure has an extensive railway network, a well-developed highway network, sea and river ports (terminals), airports and a wide network of air destinations, freight and customs terminals. The future of the Ukrainian state and the well-being of its people depend on the operational performance and development of these services. More
The Ministry of Infrastructure supported by “SPILNO” PPP Project Management Office moves ahead with the pilot concessions in ports Olvia and Kherson. Selection of the consultants’ consortium, comprising leading international and experienced Ukrainian companies, made a good start for the feasibility studies preparation. The consultants, backed by EBRD and IFC, began their work in March this year. The key findings of a comprehensive market analysis combined with a thorough financial, technical, environmental and legal analysis, formed a solid basis for the feasibility studies of both projects. During the meetings with potential investors, the suggestions of a wide range of domestic and international private partners were collected. Feasibility studies demonstrate that concession in Olvia port may potentially: (a) attract investments of about UAH 17.3 bln, (b) increase budget revenues up to UAH 58 bln within entire 35 years of the contract, including revenues from the concession fees up to UAH 19.5 bln. In its turn, Kherson Port over the next 30 years might: (a) get investments of about UAH 1.37 bln, (b) increase budget revenues up to UAH 14.3 bln for the entire duration of the concession contract, including revenues from concession fees up to UAH 2.8 bln. Working Groups under the Ministry of Infrastructure finalized a Conclusions on the efficiency analysis on PPP in both ports in October this year. Now we are heading to the next step — approval of the Conclusions by the Ministry of Economy to enable the Ministry of Infrastructure of Ukraine to form the tender commission and proceed with the tender organization.
The State Service for Maritime and River Transport of Ukraine (Maritime Administration) has announced a competition for vacant positions of captains of 13 seaports of Ukraine. The relevant advertisement posted on the website of Maritime Administration. «Such an innovative management decision witness about considerable attention of acting government to the infrastructure sphere of the economy, which may and should substantially fill the state treasury,» — reported the press service of the Maritime Administration. According to the announcement, the competition will be held by the National Agency for Civil Service. «The competition is conducted (…) in accordance with the requirements established by law in relation to the professional competence of a candidate for employment on position in the civil service, assessment of his personal achievements, knowledge, skills and abilities, moral and business qualities for proper performance of official duties. And also with the principles of equal access, political impartiality, legitimacy, public trust, non-discrimination, transparency, integrity, reliability and compliance with testing methods, consistency of application of testing methods, effective and fair selection process,»- said in the statement. Deadline of filing documents — November 19, 2018. ports.com.ua
The Cabinet of Ministers of Ukraine, in accordance with the Procedure on competitive selection of candidates for the position of an independent member of the supervisory board of a state unitary enterprise and their appointment, and on competitive selection of candidates for the position of an independent member of the supervisory board of business entities, in which more than 50 percent of shares (parts) in the share capital are owned by the state, who are proposed by a state-owned company for the selection process of independent members of the supervisory board, approved by Resolution of the Cabinet of Ministers of Ukraine of March 10, 2017, No. 142, Resolution of the Cabinet of Ministers of Ukraine of September 3, 2008, No. 777 “On competitive selection of managers of business entities of the state sector of the economy” and Order of the Ministry of Infrastructure of 26 September 2018 No. 436 “On selection for the positions of independent members of the Supervisory Board of the State enterprise “Ukrainian Sea Ports Authority” hereby announces a selection for the positions of independent members of the Supervisory Board of the State enterprise “Ukrainian Sea Ports Authority”. More  
Ukrainian grain trading company Nebulon is to invest $2 billion to build new grain silos and transportation barges in Egypt’s Nile Delta region, the Egyptian supply ministry said on Sunday. The silos would be erected on two sites near the Alexandria and Damietta ports, and 20 barges would be built each with a capacity to transport 2,000 tonnes of grains along the river, the ministry said in a statement. The first phase of the investment, under a recent agreement, would begin in the next two years, it said, without elaborating. REUTERS

USPA News

On October 8, 2019, the announcement on the start of accepting applications to take part in the concession tenders for the transfer of the assets of the state stevedoring company in the sea port of Kherson in concession was published in the “Golos Ukrainy” newspaper (the official publication of the Verkhovna Rada of Ukraine). The applications will be accepted until December 6, 2019. The processing of the applications to be admitted to take part in the tender will take 14 days.
Raivis Veckagans, Head of the Ukrainian Sea Ports Administration (hereinafter –USPA), is confident that the adoption of the new Law on Concession by the Verkhovna Rada of Ukraine will help attract foreign investors to the implementation of public-private partnership projects in the port industry and improve conditions for implementing the pilot projects for state stevedoring company concessions in the ports of Olvia and Kherson.
The “Ukrainian Sea Ports Authority” SE (hereinafter – USPA) is one of the first state enterprises to have finalized the transition to International Financial Reporting Standards (IFRS). On September 27th, 2019, Baker Tilly Ukraine LLC, which is an independent member of the Baker Tilly international network, has completed its audit and prepared an independent auditor report on the USPA’s preliminary financial statements for 2018.
The above was discussed during the meetings of the Members of the Supervisory Board of the State Enterprise “Ukrainian Sea Ports Authority” with the Minister of Infrastructure of Ukraine Vladyslav Kryklii and the representatives of the Parliamentary Committee on Transport and Infrastructure, which took place on September 19th, 2019. The Members of the USPA Supervisory Board shared with the legislative and executive power representatives their vision of the development of the Ukrainian Sea Ports Administration and of the port industry, as well as obtained the necessary information on the priorities which the state as an owner tasks the enterprise with. “Most importantly, the USPA Supervisory Board, the Ministry of Infrastructure, and the Members of Parliament representing the relevant Transport Committee of the Verkhovna Rada as a whole have a common vision of the main directions of the enterprise development. The main priorities are as follows: the improvement of the competitiveness of ports, the increase in financing of the port infrastructure projects, the USPA corporatization, and essentially, the further development of transparent relations with the port community”, − Dmytro Barinov, the Chairman of the USPA Supervisory Board said. Upon the outcome of the meetings, he emphasized that one can now be confident that the process of reforming the port industry, in particular the implementation of European governance principles and mechanisms of public-private partnerships in ports, would be supported by the government. It is planned that the rate of dividends coming from the USPA’s profit to the state budget would be reduced from 90% to 50% in 2020. This will allow to boost financing of the port infrastructure development projects. In turn, the Sea Ports Authority has to ensure the maximum openness and cost optimization, as well as to undergo an integrated audit. “The Ministry of Infrastructure of Ukraine also stressed upon the importance of closer collaboration of the USPA Supervisory Board with the management of the enterprise to increase the efficiency and transparency of internal business processes. In particular, the Minister of Infrastructure is supporting the expansion of the authority of the USPA Supervisory Board in deciding on the staff issues at the management level on an open competition basis with the involvement of international experts”, − Dmytro Barinov emphasized. “We are grateful to the Minister of Infrastructure of Ukraine, Vladyslav Kryklii, and the Chairman of the Committee on Transport and Infrastructure of the Verkhovna Rada, Yurii Kisel, for the opportunity to discuss in detail the issues of particular importance to the industry and are ready to actively cooperate with the legislative and executive power representatives to achieve fast and efficient results for both the state and businesses”, − the Chairman of the USPA Supervisory Board summarized.
Ukrainian Sea Ports Authority would like to invite international investors  to participate in the Road Show for the Olvia and Kherson port concession projects, which will take place on October 1, 2019, at the Bristol hotel in Odesa, Ukraine. This event will be organized jointly by the Ministry of Infrastructure of Ukraine, Ukrainian Sea Ports Authority, European Bank for Reconstruction and Development, and International Finance Corporation. USPA will become one of the parties to the concession agreement to coordinate the implementation of projects within the framework of the Ukraine’s Sea Port Development Strategy Until 2038. The Road Show of the pilot concession projects is meant to provide a platform to present to the investor community the Government’s vision for the development of the Ukrainian seaport sector, with a particular focus on the concession mechanism and potential projects. During the first session, participants will hear from top officials including Minister of Infrastructure, Minister of Economic Development, Trade and Agriculture, head of the Parliamentary committee for Economic Policy, top management of USPA, as well as representatives of the Mykolaiv and Kherson authorities. In addition, IFC, EBRD and their consultants will share with the participants detailed information about Olvia and Kherson port concession projects, with a particular focus on the description of the tender process and key tender conditions. During this session, participants will have a chance to ask questions and receive clarifications. In order to participate in the Road Show, participants must register by following this link:  http://bit.ly/olviakherson  We look forward to welcoming you in Odesa!

Analytics

USPA CEO tells about relations with steelmakers, trends in transshipment of mining & metals products and infrastructure issues   On 30 May, Odesa will host the Ukrainian Ports Forum, organized by the Ukrainian Sea Ports Authority (USPA) and the Center of Transport Strategies (CTS). Ahead of the event, GMK Center decided to ask Raivis Veckagans, USPA CEO, about the Authority’s relationship with Ukrainian steelmakers, trends in transshipment of mining & metals products between seaports, problems of the port railway infrastructure and ways to solve them, and the role of steel products in the development of the port infrastructure.
The Cabinet of Ministers approved the possibility of corporatization of the USPA, respectively, the next year the state enterprise may receive new status and opportunities. Among them — simplification of attraction of loans, transparent management on a collegiate principle, introduction of world practices of property disposal, simplification of procurement procedures.
On 31 May, the Ukranian Sea Ports Authoritiy (USPA) officially joined ESPO as an observer member. We thought this would be the perfect occasion to have an interview with Mr Raivis Veckagans, CEO of USPA, to present the Ukranian port sector, as well as himself! USPA is responsible for 13 Ukrainian seaports. What is the role of USPA with regards to these ports? What are the main characteristics and challenges of USPA?

Announcements

According to the order of the Ministry of Infrastructure of Ukraine of 06.16.2014 #255 «On closure of seaports», registered in the Ministry of Justice of 06.24.2014 № 690/25467 Ukraine closes to international shipping the following seaports, which are located on the territory of the Autonomous Republic of Crimea: Yevpatoriya, Kerch, Sevastopol, Feodosia and Yalta. This document was adopted pursuant to the Order of the Cabinet of Ministers of Ukraine of 30.4.2014 #578-p «Some issues on functioning of the sea and river transport» and in accordance with the Procedure for opening and closing the ports, approved by Order of the Cabinet of Ministers of Ukraine of 11/7/2013 #495.

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