Ukraine invites DP World to develop Yuzhny port

Yuzhny Sea Commercial Port. Source: Port Authority

Global port operator DP World will enter Yuzhny port (Ukraine, Odessa region) by the end of 2017, said Volodymyr Omelyan, the Minister of infrastructure of Ukraine at the meeting with representatives of P&O Maritime FZE, a subsidiary of DP World, earlier this week, informs press service of the Ministry. The meeting was also attended by Raivis Veckagans, CEO of Ukrainian Sea Ports Authority, Vitaly Zhukovsky, acting CEO of Yuzhny Sea Commercial Port and representatives of the state’s Investment Council.

The minister has highlighted that the involvement of such strategic investor as DP World is the opportunity for Ukraine to become part of the global port industry and “attract billions of dollars of investments to the maritime industry, attract cargo to Ukraine, create added value to the state-run enterprises of the sector”.

He also commented: “I am glad that the dialogue continues and there is interest from the both sides. But happy I will be when such companies as Ryanair, DP World, Hutchison Ports, General Electric, perhaps Tesla come to Ukraine. This is Ukraine’s integration in global society of economically and technically developed countries”.

It was decided at the meeting to crease a working group consisting of Ukrainian executives to develop a roadmap on possible ways of investments into the state’s port infrastructure with a clear definition of terms and conditions.

DP World has been recently expressing interest in Ukrainian port industry. In July 2016, P&O Maritime FZE signed a Memorandum of Cooperation with the port of Odessa, which implied exploration of investment opportunities into Ukrainian port industry and implementation of best practices in port assets management by P&O Maritime, primarily it concerned the towing fleet of Odessa.

Another MOU was signed in October last year between DP World and the Ministry of infrastructure of Ukraine. The parties agreed to mutually develop suggestions on reforming Ukrainian port industry and on increasing transit potential of the country.

Following this, Ukrainian executives have held a number of other meetings with DP World, at World Economic Forum in Davos in January and later, at Annual Investment Meeting in Dubai on April, 2-4. According to sources, DP World is interested in obtaining a concession on operation of the Yuzhny seaport and recently has agreed with the Ministry of infrastructure to audit the port’s information system of cargo handling.

Yuzhny is a multi-purpose port in the Black Sea handling chemicals, mineral fertilizers, grain, bulk, liquid and general cargo. In Q1 2017 the port handled 3.7 mln tons, mostly export volumes (75%), of which coal and iron ore make up 93%.

Julia Louppova:
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