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 announced tenders for dredging in Mariupol and Berdiansk seaports

The Ukrainian Sea Ports Authority announced two tenders for dredging in the ports of the Azov Sea. Applications for participation in tenders for operational dredging in Mariupol and Berdiansk seaports are accepted until January 14, 2019. The relevant information is published in the ProZorro electronic procurement system. “The Ukrainian Sea Ports Authority has decided to divide the scope of work in ports on the Azov Sea. This is done so that potential contractors can mobilize the necessary fleet to perform works in each specific port. We are interested in attracting the maximum number of participants in tenders and the earliest possible start of dredging works in Mariupol and Berdiansk,” said the Head of the USPA, Raivis Veckagans. The amount of work that needs to be done in Berdiansk port is 1.85 million cubic meters, of which: 1.4 million cubic meters — on the approach channel and 466 thousand cubic meters — in the inner water area of the port. Expected cost of work — 430 million UAH without VAT. The volume of dredging is 1.9 million cubic meters in Mariupol port. The main works (1.79 million cubic meters) are to be carried out on the approach channel of the Coal Harbor, and 115 thousand cubic meters — in the port’s water area. The expected cost of dredging is 460 million UAH without VAT. Currently, in the ports of the AzovSea, dredging works are carried out by the own vessel, the USPA, the self-propelled dredger “Meotida”. However, its capacity is not enough to carry out the entire scope of work necessary to ensure passport-carrying sediments of vessels heading to ports. Given the difficult situation in Azov, the removal of depth restrictions is an important factor in reducing the cost of cargo transshipment and improving the competitiveness of Ukrainian ports on the Azov Sea. The procurement is carried out by the new, specialized branch “Dredging Fleet” of the Ukrainian Sea Ports Authority, whose functions include the organization and implementation of dredging works, providing guaranteed dimensions on inland waterways and in the water areas of seaports. It should be noted that only in 2018, the USPA has announced tenders for dredging in the ports of Azov three times, but all of them did not take place due to the fact that less than two companies applied for it.

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»

The USPA and container line CMA CGM have agreed on the development of capacities for container handling in Odessa seaport

The Ukrainian Sea Ports Authority, SE «Odessa Commercial Sea Port» and Brooklyn-Kyiv Port Ltd in the presence of Minister of Infrastructure of Ukraine, Volodymyr Omelyan, and with the participation of the CMA CGM signed in Paris a memorandum on the implementation of investment project in Odessa seaport. The implementation of a large-scale project is divided into 2 queues. It is planned to increase the length of the berthing line within the framework of the implementation of the first stage, which Brooklyn-Kyiv Port Ltd together with the CMA CGM use for the handling vessels with its container terminal. Now the company is working at the berths of the USPA No. 42, 43. But their length does not allow simultaneous processing of large-tonnage container ships of 300 meters long and Panamax-type vessels of 225 meters in length. Brooklyn-Kyiv Port Ltd. predicts a potential attraction of an additional 50,000 TEU per year. «The development of cooperation between the USPA, Brooklyn-Kyiv Port Ltd. and CMA CGM is another example of an effective public-private partnership. In accordance with our port development strategy until 2038, public-private partnership projects will attract nearly UAH 44 billion investments in the development of the port industry. The reconstruction of berths № 13-z, 14-z in Odessa seaport will be implemented within the framework of this project. This will avoid demurrage of vessels and significantly increase the volume of cargo handling,» said Raivis Veckagans, Head of the USPA. In order to implement the project, the investor intends to obtain the right to operate (use) berths 13 and 14 in accordance with the current legislation of Ukraine, as well as to finance the work on the reconstruction of berths at his own expense. It is also planned to carry out dredging works in Zavodskaya harbor of Odessa seaport with the development of approaches to the berth No. 14-z, which will create conditions for safe passage and handling of vessels near the berths of the container terminal «Brooklyn-Kyiv Port». The second phase of the project envisages expanding the territory of the container terminal operated by Brooklyn-Kyiv Port Ltd., due to the section of the water area of Odessa seaport near the berths No. 8-z, 9-z, 10-z, 11-z, 12-z, 13-z, as well as at the expense of the shipyard territory «Ukraine» Reference: CMA CGM is a transport shipping company headquartered in Marseille (France), mainly engaged in container shipping. It is the largest in France and the third largest container carrier in the world with a total deadweight of vessels at 2.208 million TEUs. The company operates a fleet of 445 vessels and serves more than 420 ports around the world. The Brooklyn-Kyiv Port Terminal is the base for the CMA CGM in Ukraine.



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