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AMCU recommends ASPU to start dredging in Pivdenny port

30 July 2019, 09:11

AMCU recommends ASPU to start dredging in Pivdenny port

The Antimonopoly Committee of Ukraine (AMCU) recommends the SE ‘Administration of Sea Ports of Ukraine’ (ASPU) to begin dredging access channel of the Pivdenny sea port within the framework of implementation of the seaport development plan.

According to Interfax-Ukraine, the corresponding recommendation was given in response to the statement of TIS Group concerning the ASPU’s delay in dredging in the Pivdenny sea port.

The AMCU, in particular, believes that the procrastination of ASPU with dredging the access channel of Pivdenny sea port may constitute the signs of violation stipulated by the first part of Article 13, the Law on Protection of Economic Competition in the form of abuse of the monopoly position on the specialized services market of the Pivdenny sea port. ‘This may lead to restriction of competition on the market providing port (stevedore) services, namely, transshipment of coal, ore, iron, rolled products and grain freight in Pivdenny sea port’, the recommendation reads.

In September 2018, ASPU and TIS signed a Memorandum of Understanding envisaging implementation of infrastructure projects at Pivdenny port. In particular, ASPU intended to carry out dredging works on internal channel within the water area of quays of the TIS Group  Nos. 18-22,  water approach to the turning basin and in the part of operational water area of quays Nos. 18-20 to the design depth of 19 meters, in the part of operational water area of quays Nos.21- 22 to the design depth of 16 meters. In their turn, the TIS should perform dredging works at quays Nos.18-20 up to 19 meters, Nos. 21-22 up to 16 meters. According to the indicative plan of TIS, following dredging access channel the company aims to increase the volume of freight handling by 10-15 million tons over a ten-year period.

In May 2017, Pivdenny port administration and China Harbour Engineering Company (CHEC) signed two contracts for execution of dredging works under the projects ‘Reconstruction of Water Approaches, Shunting Zones and Operational Water Areas at the Quays Taking into Account Prospective Cargo Turnover of Pivdenny Sea Port’ and ‘Reconstruction of Sea Access Channel and Inland Water Approaches to Deep-Water Quays of Pivdenny Sea Port’.

Within the first contract, CHEC increased depth of the access channel from 16 meters to 19 meters and created an operational water area 16 meters deep near quays Nos. 23-25. The company completed works ahead of time in December 2018. The project cost amounted to UAH 1.065 billion. The project implementation will ensure operation of the grain terminal of the global commodity trader, Cargill, and MV Cargo.

Within the framework of the second contract, CHEC is dredging sea access channel and operating water area of the quays Nos.5-6 of Pivdenny sea port from 19 meters to 21 meters implementing two start-up facilities. The project is scheduled to be completed in 2019. Cost of the project is UAH 586.045 million.

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