Leading global shipping companies discuss Black Sea container hub

Odessa, Ukraine (PortSEurope) June 5, 2019 - During the Ukrainian Ports Forum 2019 being held in Odessa, Ukrainian Sea Ports Authority (USPA) head Raivis Veckagans said that specialised container and grain terminals in the Ukrainian ports are being actively developed by companies, at a time when cargo handling in local ports is increasing. At the end of May, the transshipment of containerized cargo in the Ukrainian ports exceeded 5 million tons, which is almost 19% more than during the same period last year. The increase in container handling in Ukrainian ports has been constant over the past three years and continues on 2019. Is this enough to create a Black Sea container hub in Ukraine? Representatives of leading international logistics companies discussed this issue at the Forum 2019. Veckagans said, “Now USPA together with two leading international companies, France's CMA CGM and the German Hamburger Hafen und Logistik AG (HHLA), is implementing investment projects in the port of Odessa, aimed at increasing the capacity of their container terminals and improving the technical parameters of the berths where container carriers are handled. Participants of the Ukrainian Ports Forum 2019 noted that Ukraine has great potential for the development of containerised transshipment. Among the key recommendations for the development of this area are: the early simplification of port and customs procedures and the active introduction of modern software solutions in this area. When choosing a route, potential customers take into account the speed and ease of passing the procedures at all stages of the supply chain, as well as the availability of a developed transport network, including road and rail transport. It will help not only keep the positive trend of increase in transshipment, which has been observed since 2018, but also significantly strengthen it. The development of transport infrastructure in Ukraine can be the key factor that can attract companies that are now using more western routes to deliver goods, for example, from China to Europe (new Silk Road). Improving infrastructure should also take into account the presence of transshipment centres, for example, dry ports, on the borders with Belarus, Romania, Poland and other countries where container terminal operators could operate. According to the head of the purchasing department of Maersk container line, Irenei Villar Carrillo in Southern Europe, the positive dynamics shown by Ukrainian ports in container handling, as well as stabilizing the economy and increasing consumer demand create prerequisites for the creation of a container hub in the eastern Black Sea. The development of terminal facilities in the port of Odessa and the successful operation of specialized terminals in the ports of Pivdenny and Chernomorsk also contribute to this, said Wang Hinlianang, executive director of Cosco Shipping Lines (Ukraine). However, according to experts, there are a number of constraints. So, the president of the company HHLA Philip Svens noted that the creation of a regional transfer center in Ukraine is hampered by political instability and insufficient development of the railway infrastructure. Also, according to him, the level of grain containerization - the basis for the export of Ukrainian ports - may be much higher. Managing Director of Mediterranean Shipping Company (Ukraine) Rashid Buda drew attention to the existing restrictions on the passage of large ships through the Bosphorus Strait, as well as the need for Ukrainian ports to have an appropriate volume of traffic for workin hub mode. Summing up the discussion, the World Bank expert on port infrastructure development noted that Wolfgang Hurtiene, member of the USPA Supervisory Board, noted that in most of these issues, the State Administration, with the participation of the state, stevedores and other companies responsible for the development of transport infrastructure at the national level, is already working. A further increase in the competitiveness of Ukrainian ports should strengthen their position in the Azov-Black Sea basin. Source: USPA Copyright (C) PortSEurope. All Rights Reserved. 2019.

Leading global shipping companies discuss Black Sea container hub

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Leading global shipping companies discuss Black Sea container hub

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