There is no direct threat to shipping in the ports of the Danube region and “Big Odesa” because of the blowing up of the Kakhovska HPP dam

13/ 06/ 2023

According to the Administration Sea Ports Authority of Ukraine (USPA), there is currently no direct threat to shipping in the ports of the Danube region and Big Odesa due to the undermining of the dam of the Kakhovska Hydroelectric Power Plant. However, the full-scale efforts to mitigate the consequences of the accident are hindered by shelling carried out by Russian forces, and the outlook for the situation may change. The newly established headquarters monitors the circumstances, including the Administration Sea Ports Authority of Ukraine and local authorities. Its task is to control the condition in the port waters, ensuring the safety of navigation and preventing technogenic environmental problems. These and other issues were discussed at the meeting between representatives of the Logistics Committee of the European Business Association and the newly appointed Chairman of the Administration Sea Ports Authority of Ukraine, Yurii Lytvyn, which took place on June 9. In particular, businesses had the opportunity to address the management of the Administration Sea Ports Authority of Ukraine with relevant questions regarding the state of transportation infrastructure in the Black Sea basin of Ukraine and the consequences of blowing up the Kakhovska Hydroelectric Power Plant dam for navigation. The Russian Federation continues to block the operation of main ports and hinder the fulfillment of one of the crucial ongoing tasks of the USPA - ensuring Ukraines obligations within the grain initiative. Among other tasks of the Administration, increasing cargo handling volumes in the ports of the Danube region stands out. Currently, there are record-breaking cargo turnover volumes exceeding 11.5 million tons. These remarkable achievements were made possible through the commissioning of new berths, the utilization of additional capacity, and the optimization of existing cargo flows. The plans of USPA include the development of new storage facilities, the reconstruction of the M-15 highway, and an increase in vessel conductors (pilots), warehouses, and anchorage points in the region, which will accelerate vessel movement and improve cargo transshipment efficiency. As part of the development of the port industry, there is also an optimization of assets that are not related to the core activities of the ports. These assets are transferred to local or central government bodies, allowing the USPA to focus on its core functions and redistribute financial resources toward infrastructure development. According to the USPA administration, this approach will improve economic efficiency. It is essential to increase the interest of foreign investors and attract additional capital, advanced technologies, and international expertise to develop and modernize port facilities. For example, investments in the ports of the Danube region exceeded $97 million last year, and an increase to $120 million is expected this year. Negotiations with potential investors for the concession of the container terminal and ferry complex at the Chornomorsk port are ongoing. Regarding others, the privatization process of the State Enterprise Stevedoring Company Ust-Danube Commercial Seaport and the privatization of the Bilhorod-Dnistrovskyi Seaport through public-private partnership continue. Thanks to the representatives of USPA for the discussion and attention to the urgent issues of the business community! The business will cooperate with the Administration Sea Ports Authority of Ukraine to improve logistics infrastructure and working conditions in seaports.

According to the Administration Sea Ports Authority of Ukraine (USPA), there is currently no direct threat to shipping in the ports of the Danube region and “Big Odesa” due to the undermining of the dam of the Kakhovska Hydroelectric Power Plant. However, the full-scale efforts to mitigate the consequences of the accident are hindered by shelling carried out by Russian forces, and the outlook for the situation may change. The newly established headquarters monitors the circumstances, including the Administration Sea Ports Authority of Ukraine and local authorities. Its task is to control the condition in the port waters, ensuring the safety of navigation and preventing technogenic environmental problems.

These and other issues were discussed at the meeting between representatives of the Logistics Committee of the European Business Association and the newly appointed Chairman of the Administration Sea Ports Authority of Ukraine, Yurii Lytvyn, which took place on June 9. In particular, businesses had the opportunity to address the management of the Administration Sea Ports Authority of Ukraine with relevant questions regarding the state of transportation infrastructure in the Black Sea basin of Ukraine and the consequences of blowing up the Kakhovska Hydroelectric Power Plant dam for navigation.

The Russian Federation continues to block the operation of main ports and hinder the fulfillment of one of the crucial ongoing tasks of the USPA – ensuring Ukraine’s obligations within the “grain initiative.” Among other tasks of the Administration, increasing cargo handling volumes in the ports of the Danube region stands out. Currently, there are record-breaking cargo turnover volumes exceeding 11.5 million tons. These remarkable achievements were made possible through the commissioning of new berths, the utilization of additional capacity, and the optimization of existing cargo flows. The plans of USPA include the development of new storage facilities, the reconstruction of the M-15 highway, and an increase in vessel conductors (pilots), warehouses, and anchorage points in the region, which will accelerate vessel movement and improve cargo transshipment efficiency.

As part of the development of the port industry, there is also an optimization of assets that are not related to the core activities of the ports. These assets are transferred to local or central government bodies, allowing the USPA to focus on its core functions and redistribute financial resources toward infrastructure development. According to the USPA administration, this approach will improve economic efficiency.

It is essential to increase the interest of foreign investors and attract additional capital, advanced technologies, and international expertise to develop and modernize port facilities. For example, investments in the ports of the Danube region exceeded $97 million last year, and an increase to $120 million is expected this year. Negotiations with potential investors for the concession of the container terminal and ferry complex at the Chornomorsk port are ongoing. Regarding others, the privatization process of the State Enterprise “Stevedoring Company “Ust-Danube Commercial Seaport”” and the privatization of the Bilhorod-Dnistrovskyi Seaport through public-private partnership continue.

Thanks to the representatives of USPA for the discussion and attention to the urgent issues of the business community! The business will cooperate with the Administration Sea Ports Authority of Ukraine to improve logistics infrastructure and working conditions in seaports.