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Manufacturers to appeal to Prime Minister on cutting port dues by another 54%

The proposed cut could generate an extra $825 million, or almost 1 percentage point of Ukraine’s GDP growth.
20:24, 20 February 2018

Open source

Ukrainian industrial enterprises, along with unions and associations uniting them are going to petition the country’s Prime Minister Volodymyr Groysman regarding the support for a further decrease of port dues by 54%.

“This cut is necessary to producers across all sectors and could potentially generate an additional $825 million, or almost 1 percentage point of Ukraine’s GDP growth, for the country’s economy”, a message passed around to journalists during a press conference in the Ukrainian manufacturers’ and entrepreneurs’ union in Kyiv on Tuesday reads, Interfax-Ukraine reports. 

Related: Ukraine's government to cut port dues by 20%

The manufacturers point out that despite the recent 20% cut of port dues, there are still opportunities remaining for a further decrease of port dues.

They also point to the fact that at the time of the decision on the 20% cut of port dues was being made, Ukraine’s port dues were 2-3 times higher than comparable ports of the region. Also, according to a study by the International Finance Corporation, those could be reduced by 60%.

Related: Ukraine decreases harbor dues in 20%, - Groysman

“This would allow Ukraine to set its port dues at a competitive, comparable to other ports in the region, level, and at the same time to maintain the nation’s port infrastructure in decent condition. Given the 20% cut, a further reduction by 54% is possible”, - the message reads.

At its meeting on 11 January, the Cabinet of Ministers agreed upon the reduction of port dues.

Related: Mariupol seaport rises cargo handling by 32% in January 2018

According to the government’s resolution, the Cabinet of Ministers approved the proposal by the Ministry of Infrastructure regarding a reduction of ship, canal, lighthouse, sanitary, anchor, berth and administrative port dues and approved the 0.8 coefficient. Therefore, a decision to reduce port dues by 20% was made.

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