ACC Experts: Transfer Of State Stevedoring Companies To Private Investors Will Increase Cargo Traffic At Ports

The results of the operations of seaports in the past few years show that state-owned stevedoring companies are losing market share while private stevedores operating at both private and public berths are, on the contrary, increasing their cargo handling volumes.

According to the press service of the American Chamber of Commerce in Ukraine (ACC), business representatives stated this at a meeting with Ukraine’s First Deputy Minister of Infrastructure Volodymyr Shulmeister.

According to business representatives, transfer of management of state-owned stevedoring companies to private investors can increase the volume of cargo passing through Ukrainian ports.

Shulmeister said that his ministry is currently considering various forms of development of such state-owned companies. According to him, compatibility with state interests will be the main criterion for choosing new forms of operation for such companies. In addition, the ministry is actively working on reform of the Administration of Seaports of Ukraine.

"In response to questions from the chamber’s experts on environmental control of segregated ballast, Shulmeister noted that the relevant position of the ministry that was submitted to the government meets all the standards of the International Convention for the Prevention of Pollution from Ships (MARPOL), and it abolishes corruption schemes related to control of segregated ballast in Ukrainian ports," the a press service said.

The business community also asked the first deputy minister to support the ministry’s draft order on changes to the procedure for levying port charges and the rates of port charges. According to the experts, this will promote healthy competition between container terminals at various ports and ensure return of private companies’ investments through distribution of tonnage tax.

The experts also called on representatives of the Ministry of Infrastructure and the State Aviation Service to resolve the issue involving the granting and revocation of the right to operate airlines. For this, they proposed considering this issue within the framework of the commission for granting such rights. Representatives of the business community also called for the creation of a separate entity that will distribute funds from the road fund for maintenance and development of Ukraine’s road infrastructure, since they are currently used mainly not for the intended purposes.