WATERWAYS

IN

UKRAINE

MINISTRY OF INFRASTRUCTURE OF UKRAINE

March 2016

31|57|108

219|219|219

36|58|96

0|158|237

242|242|242

15|47|98

214|214|214

24|57|115

6|158|236

42|48|54

26|31|37

0|83|167 90% of grain export transported through

seaports

Attraction of private investments to State

Stevedoring Companies

Amendments of Law on Concessions

International companies that already

operating in Ukrainian seaports are Bunge,

Arcelor Mittal, ADM

Cargill, Soufflet group, Arcelor Mittal and

Bunge have plans to invest in Ukraine in 2016

32 25,6

22,2

5,4 0,4 2,5 0,2 0,2 1

16,8

11,9

8,5 6,9 1,6 4,3 4,6 1

Private stevedores State-owned stevedores

Cargo turnover by stevedores, Mt (2015) Total 144.6 Mt (2015)

Attraction of private investments is critical for seaport sector

3

Competitive Tariff System Simplification of Control Procedures Introduced ‘Single Window’ Simplification of obtaining dredging permits

Conduction of systematic dredging National Seaport Strategic Study Law of Concession Amendments -Creation of Joint Working Group - Funding Requested from EBRD for International Legal Technical Assistance Transparent Tender Process

Increased transparency will result in increased trade

4

Yuzhniy

Odesa

Illichivsk Bilgorod-Dnistrovsk

Ust-Dunaisk

Izmail

Reni

Mykolayiv Oktyabrsk

Kherson

Skadovsk

Mariupol

Berdyansk

Kerch

Feodosiya

Yalta Sevastopol

Yevpatoria

Stevedores by ownership (2015)*

144.7mt

Major ports

Small ports Crimean ports

Cargo turnover by direction (2015)*

144.7 mt

Odesa region Mykolayiv region Mariupol region

Izmail region

Azov Sea

Black Sea

Yuzhniy: Specialization: state-owned stevedores (“SOE”) – ore, coal; Private stevedores (“Private”) – ore, grain, chemicals, coal Max. draft: 13.5-18.5m Vessel type: Capesize, Panamax Odessa: Specialization: SOE – no operations; Private – grain, containers, metals, oil Max. draft: 13.5m Vessel type: Panamax Illichivsk: Specialization: SOE – ore, grain, auto; Private – containers, grain, oil Max. draft: 13.5m Vessel type: Panamax

Mykolayiv: Specialization: SOE – no operations; Private – grain, ore, metals Max. draft: 9.0-12.5m Vessel type: Panamax Oktyabrsk: Specialization: SOE – metals, construction; Private

– grain, chemicals, coal Max. draft: 12.5m Vessel type: Handymax

Mariupol: Specialization: SOE – metals, coal; Private – metals, grain Max. draft: 8.5-9.8m Vessel type: Handymax

Izmail: Specialization: SOE – coal, ore; Private – no operations Max. draft: 4.0m Vessel type: Handy

BLACK SEA

AZOV SEA

Source: USPA

*Note: industry data excludes cargo turnover of the Crimean ports

Cargo turnover by stevedores, mt (2015)

32 25,6 22,2 5,4 0,4 2,5 0,2 0,2 1

16,8

11,9 8,5 6,9 1,6 4,3 4,6 1

Private stevedores State-owned stevedores

72%

12%

11% 5%

Export ImportTransit Cabotage

34%

66%

State-owned stevedores Private stevedores

31|57|108

219|219|219

36|58|96

0|158|237

242|242|242

15|47|98

214|214|214

24|57|115

6|158|236

42|48|54

26|31|37

0|83|167

90% Freight turnover 2,4 Mt (2015) by the state

seaport operating company

Main products: grain, minerals, ferrous metals,

coal

Outdoor storage: 277200 m²; indoor storage:

41135 m²

Depth near berths – 9,75-11,5 m; 7 berths – 1,53

km;

General area of the seaport – 178,8 ha

Freight arriving by train station "Oktyabrskaya"

railway capacity 828 wagons / day

General processing capacity of SE Oktyabrsk

seaport operating company is 2,57Mt.

Net sales 2015 (mln USD)

Number of employees

EBITDA margin

16,6 750 58,3%

Oktyabrsk seaport

Exchange rate USD/UAH 26,2

Port has ideal location for transportation of agricultural products

6

In order to develop inland water transport,

investments are needed to:

Repair the six locks on Dnipro river

Reconstruct six drawbridges

Conduct systematic dredging to maintain and

deepen the navigation channels

the Law "On Inland Waterways” will instigate a

number of important infrastructure projects and

stimulate economic growth

Rivers are the most cost effective way of transportation

Draught limits in Dnipro river

7

Admission of foreign ships in the Ukrainian

inland waterways for the transport of both

passengers and cargo

Strategy of river ports development

Introduction of private river transport

operators

Cancelation of fees for passage the water

locks

The new Law will stimulate development of inland waterways transport

Map of Reservoirs and Locks

THANK YOU FOR YOUR ATTENTION!