Investments In Dredging Project In Yuzhny Port Recouped In Less Than Three Years

19 May 2017 10:58

The investments in the dredging of the approach channel to the Yuzhny seaport and the port’s waters, which is a first phase of the project being implemented near the port’s berths Nos. 5-6, were recouped in just two years and 10 months. The Ukrainian Sea Ports Authority dredged the port’s waters from 15 meters to 19 meters during the implementation of the first phase of this project.

"The Ukrainian Sea Ports Authority invested UAH 887.2 million in this project and earned an additional income of UAH 877.97 million during the entire period of its implementation because of an increase in freight traffic and the cancellation of discounts. Thus, the investment in the project has almost been recouped in less than three years. This timeframe is a great result for an infrastructure project. We will be guided specifically by this kind of project – with clear efficiency indicators, quick payback, and strategic goals – in the future," the Ukrainian Sea Ports Authority’s head Raivis Veckagans said.

The development of this part of the Yuzhny seaport’s waters will be continued in accordance with the project approved by the Cabinet of Ministers, which provides for increasing the water depth to 21 meters and expanding the port's approach channel to 230 meters. This will make it possible for large-tonnage vessels of the Newcastlemax and Wozmax classes to call at the Yuzhny seaport, thus making it possible to recoup the costs in the near future (the cost of calls at Ukrainian ports by vessels of the Wozmax class with 260,000 deadweight tons is 1.5 times higher than that of vessels of the Capesize class).

"The increase in the port's throughput through partial implementation of this project alone has allowed large vessels of the Capesize class to make 351 calls at the port, where they are loaded to full capacity at the berths Nos. 5-6…” the Yuzhny port authority’s head Maksym Shirokov said.

As the CFTS portal reported, China Harbor Engineering Company Ltd. recently won two tenders for performance of dredging works at the Yuzhny seaport. On April 28, the Ukrainian Sea Ports Authority announced its readiness to sign a contract with China Harbor Engineering for performance of dredging works at the Yuzhny seaport’s berths Nos. 23, 24, and 25. The Ukrainian Sea Ports Authority also announced that it was ready to sign a second contract with China Harbor Engineering Company Ltd. as the winner of a tender for reconstruction of the approach channel and inland water approaches to the Yuzhny seaport’s deep-sea berths.