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The concession company commences administration of the Port of Kherson and deems a fast and full-fledged renewal of the port’s activities to be its first and paramount task

Published:December 24, 2021

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Now this unique port in the mouth of the Dnieper River will work according to the up-to-date standards, said Oleksandr Minov, a co-owner of Risoil and Port of Kherson LLC, commenting on the successful completion of the concession procedure.

It finally became possible after the Ministry of Infrastructure of Ukraine, the Ukrainian Sea Ports Authority, Risoil-Kherson LLC and Port of Kherson LLC had signed Deeds of Transfer within the framework of a 30-year concession.

The Port of Kherson will be upgraded, which will increase its efficiency considerably. We are talking about investing at least UAH 216 million into the Port in the coming 3 years and 6 months and at least UAH 18 million into the infrastructure of Kherson. In particular, we are planning to co-finance the major repair of the roads approaching the Port and a new site for trucks beyond the city limits, says Oleksandr Kubrakov, Minister of Infrastructure of Ukraine.

The thorough preparation allows launching all the processes in the shortest possible time. We are going to apply the up-to-date approach, advanced equipment and technologies, which means not only an increase in volumes of cargos transshipped, but also higher wages for employees, improved working conditions and safety, compliance with the high environmental standards, stressed Oleksandr Minov.

Port of Kherson LLC has been incorporated on the initiative of the companies of RISOIL Group and Georgian Industrial Group.

First of all, the concession company is planning to launch the updating and overhaul of the equipment, mechanization of warehouses, increasing the storage capacities to store grain simultaneously for account of installation of some additional silos.

To this effect, a scheduled plan of investments has already been approved and detailed project reports have been worked out.

It ought to be noted that the Port is versatile, given both the freight nomenclature to be handled and its location. The managers of Port of Kherson LLC stress that despite its relatively small area, the Port can be very efficient. It was the obsolete equipment, facilities, and technologies used in the Port prior to the concession that led to the downfall in transshipment volumes and impairment of the company’s financial situation. All that shall be a thing of the past, the company adds.

It should be recalled that the Concession Contract for the property of Kherson Commercial Seaport was signed on 26 June 2020 in the presence of Volodymyr Zelenskyi, the President of Ukraine. The consulting support throughout the concession procedure was given by SPILNO Project Management Office for Development of Public-Private Partnership.