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.
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%.
“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.
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.