Ministry of Communities and Territories proposes govt approve incentives for Danube ports development
Creation of a single Danube branch of state enterprise Ukrainian Sea Ports Authority (USPA) and reinvestment of state enterprises' profits in port infrastructure and fleet development are envisioned in an experimental project for developing Ukrainian Danube ports, which was supported by the Coordination Council on Competitive Environment Development in Sea Ports.
"This is about equal competitive conditions for business, stable operation of 56 stevedoring companies and growth of guaranteed cargo flow to 2.5 million tonnes per year. In addition, the proposed solutions will preserve about 2,000 jobs in the maritime economy complex and over 3,500 at Ukrzaliznytsia," said Deputy Minister Andriy Kashuba, who presented the project according to a statement from the Ministry of Communities and Territories Development.
The ministry notes that the project also provides for tariff incentives and directing port fees toward regional development, as well as stimulating rail transportation to/from Izmail and Reni ports on a compensation basis.
Separately, Kashuba presented developments on creating industrial parks in Izmail and Reni ports and on the territory of Ukrainian Danube Shipping Company, the statement says.
According to the statement, the coordination council unanimously supported submitting to the Cabinet of Ministers a proposal to launch the project for a two-year term.
In addition, Deputy Minister Oleksiy Balesta presented solutions for rail logistics to Greater Odesa ports, as currently due to security risks Ukrzaliznytsia is forced to use different transportation routes, which increases delivery time and costs. To address this, averaging the tariff distance was proposed, which would maintain the same tariff regardless of cargo delivery route, the statement explains.
