ASK Ukrrichflot : The river needs an up to date law!

Since August 2015, the Draft of the Law of Ukraine 'On Inland Water Transport' has been under the consideration in the Verkhovna Rada. This is an important document, which should regulate and harmonize the issues of the river industry functioning in the country. However, the project, which has already been included thirteen times in the agenda of the meetings has still not been considered (we hope that this will happen in the nearest plenary week).

Ukrrichflot supports the necessity of adopting the most important for the river transport workers Law. The Company is sure that the absence of this basic document slows down investments in the industry, the absence of legislative 'rules of the game on the river' precludes long-term planning of the activity and planning the increase of volumes of inland transportation.

The draft of the law provides for cancellation of certain fees and charges, in particular, fees for locking, fees for passing of draw-bridges; stipulates the possibility of private investment in strategic infrastructure facilities, determines the legal status of ports and terminals, etc.

The greatest number of discussions during public debates of the Law draft were caused by the norm on the introduction of a single river tax.

The position of Ukrrichflot JSSC on this issue is quite clear, that is full support of the proposed provision of the Law. Today, while carrying out river transportations, the Company pays port fees, the funds from which are transferred to the accounts of the State Enterprise 'Administration of the Seaports of Ukraine', Ukrzaliznytsya PJSC, etc. Accordingly, these funds are used for the needs of seaports, railways, etc. In other words, the 'river' does not receive money that is 'generated' by the river transport. The draft of the Law proposes to redirect part of the funds currently being paid by ship owners (but used for other purposes) for the needs of the 'river' itself (dredging, arrangement of navigation circumstances, etc.).

The Company believes that the adoption of the Law will help balance the activity of the transport industry and make inland waterways competitive in the freight market.