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Ukraine's government to cut port dues by 20%

The initiative aims to make Ukrainian ports more affordable and more competitive
14:09, 11 January 2018

Open source

At its meeting on Thursday, 11 January, the Cabinet of Ministers of Ukraine agreed to reduce port dues, Interfax-Ukraine reports.

The government agreed with the idea suggested by the Ministry of Infrastructure, which would cut ship, canal, lighthouse, sanitary, anchor, berth and administrative port dues and approved the 0.8 coefficient. Therefore, an agreement to cut reduce port dues by 20% was made.

Related: 26 cargo ships violated Ukrainian law by entering Crimean seaports in 2017

According to the document, the decision was to become effective as of 1 January 2018.

In December 2017, the Cabinet of Ministers lowered the bar of the required net profit the state-owned enterprise Ukrainian Sea Port Authority must send to the state budget from 75% to 50%. Another decision made during that meeting was to figure out measures that would cut ship, canal, lighthouse, sanitary, anchor, berth and administrative port dues, beginning on 1 January 2018. The measure was announced today, which is to cut port dues by 20%.

Related: Another top port operator to start work in Ukraine

In September 2017, Vox-Ukraine published an article that examined Ukrainian port tariffs and intended to suggest possible measures, which would make them more competitive. The authors found that Ukrainian ports collect income from between 14 and 20 different tariffs. At the same time, two of Europe’s largest ports – Rotterdam and Antwerp – have only three essential tariffs collected by Port Authority, whereas towage and pilotage dues are paid to private corporations.

Related: World’s largest port operator enters Ukrainian market

Apart from that, the authors discovered that Ukraine’s port tariffs are significantly higher than at comparable ports elsewhere. For example, port costs based on an average container ship’s itinerary in the region reveals that Ukrainian tariffs are over 2.5 times as high as the average for six other ports in the region.

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