The Ukrainian Danube Shipping Company (UDP) aims to operate without losses in 2014, unlike the previous few years, the company’s Board Chairman Oleksandr Dolhov has told the Center for Transport Strategies.
"Since we ended the second half of 2013 profitably, I believe that 2014 should be loss-free. We are not stopping but continuing to operate based on our scheme, which is based on the transparency of the management and reporting system,” Dolhov said.
As reported, UDP reported losses of UAH 64 million for 2011 and UAH 61 million for 2012. However, according to preliminary data, its losses will not exceed UAH 10-12 million and its cargo transportation volume increased by 12.4% to 2.465 million tons in 2013.
Dolhov also told the Center for Transport Strategies that the increase of the company’s transport volume and the reduction of its losses were made possible by a change in the company’s system of operation and management in the period of 2012-2013. For example, the company introduced the principle of profitability of all its structural units, optimized the number of its employees, and tightened control over the movement of ships and fuel consumption.
According to earlier reports, wage arrears to employees of UDP were paid in 2013 thanks to intervention by prosecutorial agencies. Salary arrears totaling about UAH 4 million were paid to 2,000 employees in December. Two criminal cases were opened during the year in connection with non-payment of UAH 14 million and UAH 12 million. The company paid part of the wage arrears (over UAH 10 million) during the pre-trial investigation of the case.