The Ministry for Communities and Territories Development of Ukraine has launched the search for an investor for the First and Container terminals of the port of Chornomorsk – set to become the largest concession project in the sector. The announcement of the concession competition has been published on the ministry’s website.
“The Ministry for Communities and Territories Development of Ukraine announces a concession competition (competitive dialogue) for the concession project regarding the First and Container terminals at the port of Chornomorsk (Universal and Grain Sea Terminals),” the statement reads.
The concession objects include existing assets (both movable and immovable) under the balance of SE “Chornomorsk Commercial Sea Port,” as well as existing assets (including movable and immovable property and berths No. 1–6) under the balance of SE “Ukrainian Sea Ports Authority” within the terminals. Additionally, the concessionaire will own any property created and/or built during the execution of the agreement.
The concession agreement will have a term of 40 years.
The deadline for submitting applications for the preliminary selection is 75 days from the date of publication of the announcement.
Under the terms of the concession agreement, the concessionaire will be required to invest at a level sufficient to ensure the necessary capacities and capabilities to achieve the throughput levels defined in the development plans specified in the agreement.
It is expected that within three years from the start of the project, the port’s capacity will reach 250,000 TEU per year for containers and 3 million tons per year for other cargoes.
The concessionaire will also be required to finance the reconstruction of the overpass leading to the port infrastructure, up to $4 million (including VAT), to secure the right to close the internal road to third-party traffic. They must also fulfill several social obligations, including retaining part of the staff and preventing salary reductions for three years from the established level.
The government expects the Chornomorsk port project to become the largest public-private partnership in the history of Ukrainian ports. The project includes hundreds of millions of dollars in investments for the modernization of berths and port equipment, over $1.1 billion in budget revenues over 40 years, and the restoration of container throughput to 250,000 TEU annually.
Interest in the project has already been expressed by more than 40 international port operators and investors from four continents, ensuring high competition and the best conditions for Ukraine.
