Port and Logistics Development. Ukrainian Case CEO of SE USPA - PowerPoint PPT Presentation

State Enterprise « Ukrainian Sea Ports Authority » Cooperation for Port and Logistics Development. Ukrainian Case CEO of SE “USPA” Raivis Veckagans

Ukraine: main facts (1) Trade: Location: The geographical center of Europe, turning It shares borders with Poland, the country into an ideal shopping center Romania, Slovakia, Hungary and for the EU, the Middle East and Asia Moldova to the West, with Belarus Deep and Comprehensive Free Trade Area and Russia to the North and East, as (DCFTA) with the EU and the WTO well as the Black Sea, Bulgaria, Georgia and Turkey to the South Free Trade : EU, CIS, EFTA, FYROM, Georgia, Montenegro Area: GDP: 603 500 square km. $93 billion in 2016. The largest country Top-50 economy globally in Europe Population: 42,3 million people Average salary: Human Resources: $175 per month. 20 million people. The most economically competitive #1 country in Central and Eastern Europe production platform in Europe by the number of graduates of engineering specialties 2

Ukrainian freight market and transport infrastructure 45 % 22 000 km of railways Cargo Other structure by mode 14% 22% 37 000 km of 170 000 km pipeline 18% of roads 13 seaports and 16 river ports 3

USPA: organizational structure and main functions Ministry of Infrastructure of Ukraine Subordinated organizations USPA Head office Main representative 13 Delta-pilot Kiev office branches Odessa (seaports) Main functions - Maintenance and effective use of state property - Modernization and development of port infrastructure - Organization and maintenance of safety of navigation and environmental protection 4

Ukrainian Sea Ports Authority: main facts (1) 13 13 263 263 berths seaports length over 40 40 km 132 mln 132 Established in tons 2013 2013 cargo turnover 2016 2016 5

Ukrainian Sea Ports Authority: main facts (2) Water over 55 thsd. ha area 2,9 thsd. ha Area ≈ 13 seaports Length of channels 17 channels 2 nd the largest ship 239,6 km owner in the country 128 fleet units The largest channels: Bug-Dnipro-Lyman Channel (BDL С ) – 82 km 1. Kherson sea channel – 40 km 2. 6

Ukrainian seaports: geographical location Kyiv Mariupol Mykolaiv Berdyansk Oktyabrsk Yuzhny Kherson Azov Sea Odesa Skadovsk Chornomorsk Belgorod- Dniestrovskiy Black Sea Reni Ust-Dunaisk Izmail 7

USPA operates divorce special purpose fleet Oil and waste 17 1 1 2 1 1 1 1 1 5 2 1 collection vessel 5 4 1 Suction dredger 8 Tugboat 1 3 1 2 1 1 Icebreaker 1 16 Pilot boat 14 1 1 8

Updating the Development Strategy for Ukrainian seaports through 2038 will increase the efficiency of existing and new capacities in seaports Ukrainian seaports development legal basis Purpose of the Strategy to define the conceptual framework for the formation The Law of Ukraine “On Seaports of Ukraine” of the state policy of planning and development of the adopted in 2013 port industry Development Strategy for Ukrainian seaports to improve seaport efficiency and utilization of through 2038 available capacities to balance new development with sufficient National master plan to be developed* infrastructure projects to improve the service in seaports and provide an Development plans of each seaport (short-, optimal cargo logistics medium-, long-term) Strategy implementation Balanced development and efficient use of port Priority 1. facilities. *Memorandum of understanding with Busan Port Authority Provision of competitive logistics and service Priority 2. improvement in seaports. Priority 3. Optimization of seaport management 9

Ukrainian seaports cargo turnover statistics for 2014-2017 104 687 103 983 100 202 In 2017 the growth of cargo turnover has been restored 82 071 108 520 109 171 20 719 15 904 10 328 9 673 15 986 17 959 15 976 16 057 10 months 2016 10 months 2017 thousand tons 2014 2015 2016 10 months 2017 Export, ths. tons Import, ths. tons Transit, ths. tons Main drivers of cargo turnover:  Grain  Ore  Ferrous metals  Coal 10

Cargo turnover statistics for 10 months 2017, ths. tons 16 1 411 264 256 38 4 61 2 143 372 96 2 998 2 432 591 118 2 336 1 518 14 9 966 3 702 14 278 818 5 376 3 740 1 961 30 536 Packaged cargo 2 065 14 752 1 675 Liquid cargo 10 127 74 27 Bulk cargo 8 018 1 615 3 29 14 077 34 945 19 945 19 231 5 391 307 2 555 872 17 45 5 701 2 266 4 092 11

Statistics of handled containers for 2014-2017, ths. TEU 671 521 579 472 495 172 474 400 57 529 315 323 292 151 298 268 251 627 256 096 224 894 33 963 211 997 29 782 213 722 28 551 2014 2015 2016 10 months 2017 2014 2015 2016 10 months 2017 Total Export Import Transit 12

Transit potential of Ukraine allows it to become a key link in the organization of intermodal transport between Europe and Asia EU UA KZ GE AZ CHN Pan-European corridor № 3 Pan-European corridor № 5 Pan-European corridor № 9 TRACECA 13

Capital investments ensure competitiveness of the Ukrainian ports, eliminates infrastructure and administrative barriers 141 150 Capital investments 67 637 Berth Land Dredging Specialized fleet infrastructure infrastructure 23 640 17 684 11 528 2013 2014 2015 2016 9 months 2017 (from 13.06) Capital investments, ths. USD  The choice of investment projects is carried out  The use of the e-procurement system ProZorro taking into account the specifics of the region, the ensures the transparency of the procurement process business development plans in the ports 14

Implementation of infrastructure projects of the USPA increases competitiveness of ports Reconstruction of the maritime Reconstruction of water approaches, Reconstruction of the approach approach channel to the deep-water shunting zones and operational channel of Chornomorsk seaport berths of Yuzhny Commercial Sea Port Tender announced water areas of Yuzhny seaport China Harbour Engineering Company China Harbour Engineering Company 21 m 16 m 15 m million 40,3 million million 22,2 4,4 USD USD USD 4,4 million m 3 0,5 million m 3 3,45 million m 3 15

Cooperation with foreign companies resulted in the implementation of high-scale port infrastructure projects 16

Transparency of the process ensures the attraction of international investors 1 4 160 Construction of a 165 production-reloading Construction of a complex in the rear of million 75 million grain terminal in the 170 USD berths № 13-14 in the USD seaport “ Mykolayiv ” seaport ” Mykolayiv ” ths. ths. 2 000 2 200 tons tons 2 5 Construction of the 293 405 Construction of first stage (hydraulic berth № 25 and a structures) of the million 130 million reloading complex 105 container terminal at USD USD of grain crops in the the Quarantine Mole seaport “Yuzhny” ths. ths. 600 5 000 in the seaport ”Odesa” tons TEU 3 6 200 100 Transshipment complex Development of a of grain in the rear of complex for storing million million berth No. 1-z in the vegetable oils and 150 92 USD USD Androsivsky mole area in oilseed products in the ths. the seaport “Odesa” seaport “Chornomorsk” ths. 4 000 4 500 tons tons 17

The USPA supports the initiative to implement concession (PPP) projects Railway-ferry complex of the SE State Enterprise “Stevedore SE “Kherson Commercial Sea Port” “Chornomorsk Commercial Sea Port” Company Olvia ”  179 ha total area  47 ha total area  12 ha total area  7 berths, 1,53 km length of  4 berths, 600 m length of  3 berths, 690 m length of berthing line  9,6 m max depth berthing line berthing line  10,3 m max depth  7,6 m max depth Annual terminal capacity: 4,5 million tons in   2,2 million tons of cargo were  1,2 million tons of cargo were railway cars, 35 000 trucks and 250 000 cars reloaded in 2016 reloaded in 2016 18

New approach to port development and attraction of transit cargo: not only handling, but also creation of added value in ports FEZ Reni raised $14.5 million in the Grup Agach development of the port on the Danube river Woodprocessing plant Bilgorod-Dniester seaport Established March 23, 2000 Allseeds Black Sea Ltd. Storage and port transshipment of vegetable oil. Processing of sunflower seeds, rapeseed and soybeans Free Economic Zone Term Reni 30 years 30 Delta Wilmar Tropical Oils and Oilseeds Processing Plant Area 94,36 ha ha Bunge Oil Extraction Plant Since the beginning of FEZ Reni operation: Plant of vegetable oil production  attracted investment – 14,5 million USD  sold goods, works, services – 61,2 million USD JSC Odessa Portside Plant  workplaces created – 264 Plant specializes in chemical production  taxes and duties (mandatory payments) transferred to the state budget – 705 thousand USD 19

Implementation of joint infrastructure projects in cooperation with international partners will have the following outcome by 2038 cargo flow up to 265 million tons till 2038 Ukraine’s integration into the New Silk Road 1,326 million USD, over 4 000 jobs Attraction of investments Development of infrastructure, including projects for 44 projects till 2038 reception of large-capacity vessels 2 Free Economic Zones Creation of a merchant product with added value in ports 3+ concession projects Implementation of concession projects Introduction of the leading international practices in the Audit IMO in 2018 field of maritime transport 20