12:07 18.09.2018

Infrastructure ministry approves preliminary feasibility study for concession of SOE Yuzhny port

2 min read
Infrastructure ministry approves preliminary feasibility study for concession of SOE Yuzhny port

Ukraine's Infrastructure Ministry has approved a preliminary feasibility study for concession of state-owned stevedoring company Yuzhny Maritime Merchandise Port at the Yuzhny port (Odesa region).

"Experts of the international consulting company Egis International with the support of the Infrastructure Ministry of Ukraine have designed a feasibility study for the dry cargo terminal concession project in the Yuzhny port for further preparation of the transfer of the largest state-owned stevedoring company [SOE Yuzhny Maritime Merchandise Port] to a concession," the Infrastructure Ministry reported.

The press service of the ministry told Interfax-Ukraine that the project is a concession for the dry-cargo coal-ore terminal of SOE Yuzhny Maritime Merchandise Port.

The ministry also said, referring to Director of the Reform Support Team under the Infrastructure Ministry Oleksandra Klitina, that international partners of Ukraine, the European Union, the U.S. Treasury, the European Bank for Reconstruction and Development, the World Bank and other international financial institutions (ISIs) support the reform of the concession in the ports of Ukraine.

At the same time, the Ukrainian Sea Port Authority said that the experts had worked out several options for the development of the enterprise with the participation of a concessionaire, according to which the Infrastructure Ministry is expected to prepare a policy brief of the public-private partnership project.

According to Investment Specialist of the International Finance Corporation (IFC) Oleh Kudashev, the concession of SOE Yuzhny Maritime Merchandise Port is economically viable for the investor even with a moderate volume of transshipment and with conservative forecasts of future tariffs for services.

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