Ukraine To Receive USD 250,000 From Its Vietnamese Port

26 December 2017 09:20

Ukraine should receive USD 250,000 as dividends from the Lotus port (Vietnam), in which the state-owned Black Sea Shipping Company (BLASCO) owns a 38% stake, before the end of December.

Ukraine’s Deputy Minister of Infrastructure Viktor Dovhan, who is part of a Ukrainian delegation in Vietnam to inspect the port, stated this in a column for the CFTS.

"Let me remind you that 37.93% of the port belongs to the state-owned Black Sea Shipping Company (BLASCO). We are now beginning an audit of its operations in the period of 2012-2017. The amount of dividends in the accounts in Vietnam that is payable to Ukraine is USD 250,000. In reality, the situation was quite difficult because BLASCO was looted for many years and the world's largest shipping company went bankrupt. However, a team from the Ministry of Infrastructure has reversed the situation and USD 250,000 in dividends should arrive by the end of the month. We are beginning an audit, and I think that the revenue will increase," the deputy minister wrote.

He added that the Ministry of Infrastructure was considering two options for the future fate of the port. According to him, either the port will be sold or professional managers will be sent there to jointly manage it. A decision needs to be made before 2020, he wrote.

"In the future, it will be necessary to make a decision: send professional managers to Ho Chi Minh City to manage the port or sell the state’s share in it (which has book value USD 3.7 million). There are certain prospects for development and investment if we ‘remain’ in Vietnam. For example, an American company has built a refrigerated terminal on the territory of the port for USD 20 million, and it is selling it.

“In addition, a new port can be built on 2 hectares of land near the Lotus port. We have already received interesting investment proposals involving construction of a new port and diversification of cargo traffic. However, there are also risks: a residential complex is being built near the port. Therefore, there exists the possibility of a property developer buying this land plot. Therefore, it is necessary to decide by 2020 whether to sell the port or continue investing in it. This is a decision for the management the Black Sea Shipping Company and the Ministry of Infrastructure," Dovhan wrote.