ASK Ukrrichflot PAT : Ukrrichflot Initiate Actions to Resume Cargo Transportation Using River Transport

On April 22, 2016, Ukrainian Infrastructure Forum '16 took place. That event became the first and the largest international platform in Ukraine to unite the participants of the Ukrainian market and international investors. During 'Ports and Inland Water Transport. Agricultural Logistics' panel, heads of leading Ukrainian companies and enterprises (Ukrrichflot, Ukrferry, Nibulon, Portinvest, TIS group of terminals, the Sea Port Administration of Ukraine - with the involvement of Deputy Minister of Infrastructure Yuriy Vaskov discussed the topical problems currently existing in the water transport complex of the country.

During the discussion various, sometimes polar opinions of the Law on Inland Water Transport (IWT), of river and sea transportation, the search for investors, ports, the fleet etc. were to be heard. For instance, Nibulon, who work on the river and transport agricultural cargos using their own fleet, spoke against the adoption of the current version of the Law on IWT. The company's specialists believe that the adoption of the Law may result in an increase in the price of cargo transportation, which will make it unviable and thus hinder the effective operation of the enterprise.

The company's stance on the current state and development paths of the industry was expressed in a clear and justified manner by Dmytro Moskalenko, the CEO of Ukrrichflot.

A review and analysis of the infrastructural capacities of river cargo transportation in Ukraine has been presented in his report. Statistical data indicate a triple decrease in actual volumes in the last 10 years. A complete shift of freight traffic flow towards railway and motor transport is observed; this process has been facilitated by understated railway rates and the lack of control over permissible loads during motor cargo transportation. This has resulted in the current critical state of the motor road bed and wear of the railway car fleet; the industry requires constant grants. At the same time, river transportation, which is the cheapest and most environmentally-friendly means of transport, is scarcely used.

It is due to the fact that river transport has a great potential for growth within the structure of all transport that the current situation is a serious problem and simultaneously an opportunity. The fulfillment of this may be helped by carrying out a number of systemic actions that are going to facilitate the increase in the competitiveness of river transport:

1. the adoption of the Law of Ukraine On Inland Water Transport;

2. the development and implementation of a system of inter-industry commodity and transport balance sheets;

3. the amendment of the regulatory documents of the Ministry of Infrastructure in order to support the national water transport operators.

The expected effect of the actions suggested is going to allow:

1. unloading the ground infrastructure due to the redistribution of cargos from motorways and the railway to the river;

2. developing and creating new stevedore facilities (including grain ones) in inland water transport;

3. creating new jobs;

4. developing related industries, primarily vessel building.

The company is sure that the implementation of the program suggested is going to balance the activities of the transport industry and is going to facilitate the resumption of cargo transportation on Dnipro - Ukraine's major waterway.