Ukraine preparing to restart concession projects in ports

The Ministry of Communities and Territories Development and Infrastructure is preparing new concession projects, as well as restarting those suspended in Ukrainian ports, said deputy minister Tymur Tkachenko.

"Preparations are underway to restart projects in the ports of Olvia and Kherson. In parallel, we are working on PrJSC Ukrainian Danube Shipping Company – this is critically important for strengthening the company's position in the Danube shipping market and ensuring export deliveries of grain, especially in the event of possible restrictions on access to deep-water ports," Tkachenko wrote on Facebook on Tuesday following a meeting with representatives of the International Finance Corporation (IFC).

Tkachenko expressed gratitude to the IFC for its comprehensive support and direct involvement in the development of port infrastructure.

"As part of this cooperation, we continue to work on updating the schedules for the implementation of concession projects, which will help determine the optimal time frame for announcing concession tenders," he wrote.

Among the priority topics, according to him, are the development of investment activities in Ukrainian ports, fleet modernization and attracting private capital to finance the restoration and development of infrastructure.

As is known, Kherson maritime merchant port was transferred to a 30-year concession to Risoil-Kherson in 2020. Later it became known that the co-investor of Risoil-Kherson, which won the tender for the implementation of the state property concession project in Kherson port, Jemal Inaishvili, withdrew from the project. According to him, the main reason for this decision was the delay in the process of transferring the port to the concessionaire.

On December 1, 2021, the property of Olvia port was transferred to a 35-year concession to the Qatari QTerminals Olvia. The company's investments were estimated at UAH 3.4 billion. In addition, the company was planning to build a new tunnel under the railway in Korabelny district in Mykolaiv. The investments were estimated at UAH 80 million.

In connection with the Russian full-scale invasion, the public-private partnership was not put on hold – it was reported that new concession projects were being prepared in Odesa and Izmail ports.

Former Deputy Minister – Minister of Communities and Territories Development and Infrastructure Oleksandr Kubrakov reported at the Ukraine Recovery Conference (URC2023) in London that five large companies were showing interest in concession projects in Chornomorsk seaport. In particular, it was reported that the Danish transport and logistics company A.P. Moeller-Maersk was interested in the concession of the container terminal at this port.