Dredging works have started in Chornomorsk port

The implementation of another major infrastructure project of Ukrainian Sea Ports Authority started on August 8, 2018 in Chornomorsk seaport (Odessa region). Chinese company China Harbor Engineering Company Ltd. (CHEC) embarked on a dredging on the maritime approach channel to the port and in the operating water area of the 1st bucket of the Dry Estuary. Dredging in Chornomorsk seaport will increase its competitiveness in the Black Sea basin, create conditions for the approach of large-capacity vessels with a draft of up to 14.5 m Capesize, deadweight up to 100 thousand tons and containerships with a capacity of 8 thousand TEU for existing and planned deepwater berths. «Large-scale dredging in Chornomorsk seaport is another stage in the implementation of USPA strategy for the development of Ukrainian ports. Our task is to create all necessary conditions for the effective work of all market participants – private and state stevedoring companies – to increase the flow of goods and expand the participation of Ukrainian ports in international transport corridors. Chornomorsk has an important role in the implementation of these plans," – said the head of USPA, Raivis Veckagans. According to him, development strategy of the port, in addition to dredging, provides for the reconstruction of the berthing front with increasing depths at its borders. We are talking about the reconstruction of berths No. 1–2, 11–17 with an increase in design depths of up to 15 m. Implementation of the project, developed by the basic institute of the Ministry of Infrastructure of Ukraine „ChernomorNIIProject“, provides for not only deepening, but also expanding the approach channel. To date, the length of the channel is 1400 m, the width is 150 m and the depth is 14.5 m. After reconstruction, its parameters will be increased: length — up to 1600 m, depth — up to 16 m. In turn, dredging of the water area of the 1st bucket of the Dry Estuary will allow to reach a depth in its central part up to 15 m. The total amount of dredging in Chornomorsk port will be about 2 million cubic meters. More than 500 thousand cubic meters of soil will be raised on the approach channel, in the water area – almost 1.5 million cubic meters. Estimated duration of work on projects is from 2 to 5 months. The cost of implementing projects – 404.1 million UAH without VAT. Of these, 87.1 million UAH without VAT will be directed to dredging of the channel, and 317 million UAH without VAT – water area. For dredging in Chornomorsk, CHEC mobilized a dredging fleet consisting of 15 vessels. All of them have already arrived in the water area of the port. As previously reported, CHEC was selected for dredging operations in the port of Chornomorsk as a result of open tenders in the electronic public procurement system ProZorro. The procedure consisted of two lots, an auction for each was held on March 13, 2018. The largest world dredging companies took part in the competition: China Harbor Engineering Company Ltd. (China), LTD Novadeal (Belgium), Jan De Nul n.v. (Netherlands), Van Oord Dredgingand Marine BV (Netherlands). CHEC offered the lowest cost of work. Savings amounted to 40 million UAH or 10% of the expected value. To recall that in May 2017, according to the results of the tender, two contracts were signed between USPA and CHEC for dredging in Yuzhny port. The work under the first contract was completed ahead of schedule for three months, the second – already completed 70% of the work.

Export, investments and experience exchange – USPA signed a Memorandum of Cooperation with Qatar Ports Management Company

The Memorandum of Cooperation between the Ukrainian Sea Ports Authority and Qatar Ports Management Company “Mwani Qatar” was signed following the visit of the delegation of the Ministry of Transport and Communications of Qatar to Ukraine. The document aims to increase cargo turnover between countries, in particular export supplies of Ukrainian agricultural products to Qatar, as well as attracting investments in the development of Ukrainian port infrastructure. The Memorandum was signed on Tuesday, July 31, 2018, in Kyiv in the presence of the Minister of Infrastructure of Ukraine, Volodymyr Omelyan and Minister of Transport and Communications of Qatar, Jassim Saif Ahmed Al Sulaiti. From the Ukrainian side, the document was signed by CEO of Ukrainian Sea Ports Authority, Raivis Veckagans, from Qatar – General Director of Mwani Qatar, Abdulla Al Khanji. On the eve of signing, General Director of Mwani Qatar met with Raivis Veckagans in Odesa, where he got acquainted with work and potential investment projects in ports «Yuzhny» and «Odesa». "One of the priority directions that Qatar plans to develop in cooperation with Ukraine is the export of agricultural products. In this regard, at the meeting with Abdulla Al Khanji, we discussed in detail the concession projects of ports «Olviia» and «Kherson», which are in close proximity to the main agricultural regions of Ukraine ", – said CEO of USPA commenting on the signing of the Memorandum with Qatar. In addition, according to Raivis Veckagans, Qatar is also interested in taking part in the development of the Yuzhny port. This port, in accordance with the USPA strategy, thanks to dredging works, will be able to receive the largest vessels that can pass through the Bosphorus. In turn, General Director of Mwani Qatar, Abdulla Al Khanji, confirmed that the consultants of the Qatar company are already considering two projects in «Yuzhny» port. They also became interested in the project of passenger terminal development and the hotel in Odesa port. In the end, Minister of Infrastructure of Ukraine, Volodymyr Omelyan, expressed confidence that in the near future Ukraine and Qatar will start implementation of projects in the port and aviation sector, aimed at developing transport infrastructure and expanding cooperation between two countries.

Black Sea ports signed an action plan to revive cruise shipping for the next 3 years

During the 52nd General Assembly of the Association of Mediterranean Cruise Ports (MedCruise), which took place in Valletta, Malta on May 23–26, 2018, the Black Sea ports signed an action plan of the revival of cruise shipping for the next 3 years. The delegation of the State Enterprise «Ukrainain Sea Ports Authority» included the deputy chief of the Odessa port for operating activities Ruslan Sakhautdinov, the head of the cruise infrastructure service Oleg Fetisenko and the specialist of the department of strategic planning and development Mariia Luzhanska. This action plan was supported by the president of the MedCruise Ayran Pastor, and also by the head of the Black Sea region, Theodor Patrici. This plan considers the joint application of Black Sea ports to cruise lines with the aim of reporting about safety in the Black Sea region and readiness to receive passenger ships, working meetings and Black Sea conference in 2019, including the Black Sea region in the marketing plan of MedCruise for the next year etc.. Despite the absence of cruise ships, the modernization of Odessa Passenger Terminal was carried out: internal premises were repaired, the kinetic facade was equipped. — Development of passenger and cruise traffic is among our priorities. SE «USPA» reconstructs passenger terminals and marine stations in order to provide safe conditions and high-level service for passengers. Active marketing position of Ukrainian ports is necessary to attract cruise ships. We believe that the return of cruise shipping to Odessa seaport will take place in the near future. Foreign tourists are interested in the Ukrainian tourist product, as evidenced by the increase of the number of river cruise ship calls to Ukrainian ports (Odessa, Ust-Dunaisk, Izmail) – commented by the Head of SE “Ukrainian Sea Ports Authority” Raivis Veckagans During the General Assembly, the delegation of the State Enterprise «USPA» held meetings with top managers of cruise companies (Royal Caribbean Cruises, Carnival Corporation, AIDA Cruises, etc.) and presented a positive dynamics of the tourist flow in Odessa. The next 53rd General Assembly MedCruise will be held in Burgas (Bulgaria), which will positively affect the image of the Black Sea region. Reference MedCruise is the largest association in the world, which unites cruise ports of the Mediterranean Sea and other, as well as cruise companies. There are many different new members of MedCruise every year Every year.

In the first half of 2018 seaports handled 63.8 million tons of cargo – the actual data of USPA

From January to June 2018, Ukrainian seaports handled 63.8 million tons of cargo, which is 3.1% less compared to the same period in 2017. The reasons for decline – off-season for the agrarians, which affected the volumes of grain cargo, and the shortage of wagons for ore. The decrease in cargo turnover in the seaports of Ukraine occurred according to two main types of cargo — grain and ore. The decrease in grain export (-10.3%) was due to a decrease in trade activity in the off-season and a high level of competition. The growth of grain transshipment in Ukrainian ports traditionally begins in July. The decrease in volume of ore exports in the first 6 months of 2018 was 26.5%. The largest decline in ore transshipment in general is recorded in Yuzhny seaport on two terminals — TIS-Ore (-34.9%) and SE “YCSP” (-20.8%). The reason for such a significant decline is the severe shortage of rolling stock (locomotives and wagons) provided by Ukrzaliznytsia, as stated by the Ukrmetallurgprom industry association. Thus, the transshipment of export cargo amounted to 46.1 million tons, which is 8.9% less compared to the same period of the previous year. The highest growth was recorded in ferrous metals 8.1 million tons (+ 16.5%), including 4.8 million tons of rolled metal (+ 3%) and 1.6 million tons of cast iron (+ 66.5%). Transshipment of import cargo increased by 18.7% and amounted to almost 11 million tons, against 9.2 million tons in January-June of 2017. Positive dynamics on imports shows such cargo as ore (+ 19.7%), transshipment of which amounted to 3.7 million tons and coal — 2.8 million tons (+ 10.7%). The cargo turnover of transit cargo in comparison with the period of the last year increased by 7.9% to 5.8 million tons. At the same time, there is a drop in transit supplies of coal, since shipments to Ukrainian ports have not been made over last three months. In the first half of the year, handling of cargo in containers increased in the seaports of Ukraine. During the reporting period, it amounted to 391 thousand TEU, which is + 11% compared to the same period of the previous year. Since the beginning of 2018, Ukrainian seaports have handled 5,848 vessels, which is 176 units or 3.1% more than in the same period in 2017. Also from January to June 2018, 177 272 passengers were transported (local – 154 128 and foreign passengers – 23 144). Most passengers used the services of water transport in ports of Odessa and Kherson. Mainly it is sea walks and internal transportation. Foreign passengers arrive to Ukrainian ports mainly by cruise vessels. The development of navigation on the Dnieper River continues. In the first half of 2018, 5 785 vessels’ passes were performed here, which is 533 units or 10.1% more than a year ago. A total of 2.96 million tons of cargo were transported along the Dnieper. 445.7 thousand tons of metal products (-0.9%), 799.8 thousand tons of grain (-12.4%), 27 thousand tons of oil products (+ 20.5%) and almost 1.7% million tons of building materials (+ 39.5%) and other cargo. With a full overview of cargo turnover for January-June 2018 in the context of the nomenclature of goods and ports, please click on the link. Information on transportation of passengers is available here. To see the data on movement of vessels and transportation of cargo on the Dnieper River for the reporting period, click on the link.

USPA has launched Investportal

The Ukrainian Sea Ports Authority (USPA) has created and launched a special resource for investors, which provides full information on implemented and prospect projects in the ports of the country — http://investinports.com/. This was announced by the Head of USPA, Raivis Veckagans, at the Ukrainian Ports Forum-2018. «The Investment portal of USPA is specifically designed to attract investors to Ukrainian ports. This website brings together all the information that is necessary for private investors to make a decision and to help state-owned companies — for qualitative work with potential investors»,— said Raivis Veckagans. The Investment portal was created by USPA in order to present infrastructure projects in the Ukrainian port industry and attract potential investors to the port infrastructure. The target audience of the resource is investors who are interested in developing their business in Ukrainian ports and want to find partners for joint implementation of projects. For them, the Investment portal offers many opportunities. Firstly, the site contains complete and up-to-date information on Ukrainian seaports (cargo turnover, cargo nomenclature, berthing and access infrastructure, depth, etc. in the context of each port). Thus, a potential investor can compare, analyze, and select a port that meets his requests. Secondly, the site contains data on infrastructure projects that are already being implemented on the territory of Ukrainian ports. These projects may be at different stages of implementation, but still open for investments. The Investment portal is a dynamic interaction tool. The feature of the site is that any company interested in business development in the seaports of Ukraine can place its project on this web resource to find potential investors. To do this, you need to contact USPA (the contacts are listed on the site) to upload information about the project. Large-scale public procurement services, customer of which is USPA, will be also highlighted on the Investment portal. This will help to bring even a wider range of international and national contractors to implement infrastructure projects in the seaports of Ukraine. In addition, the site contains recommendations on the mechanisms of investment in the maritime industry and the current legislation regulating business activities in ports. To recall, Ukrainian Ports Forum-2018 for the first time was held on 31st of May in Odessa, organized by USPA and Center for Transport Strategies.

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