USPA, Kernel Ink Chornomorsk Dredging Contract
- Business & Finance
The Ukrainian Sea Ports Authority (USPA) and Kernel, one of the largest Ukrainian agricultural groups, signed an agreement of cooperation earlier this week, foreseeing group’s investment in the Chornomorsk Port development in the amount of over $118.8 million.
Under the agreement, by the end of 2020, the port plans to dredge four berths and build a new grain terminal, which will increase transshipment to 6 million tonnes.
Commenting the latest agreement, USPA head Raivis Veckagans said: “The agreement between the Sea Ports Authority and Kernel is a good example of public private partnership and the next step in the systemic development of the Port of Chornomorsk, which the authority is engaged in.”
“This year we completed a large-scale main dredging project on the port’s approach canal and the water area of the first boot basin of the Sukhy estuary and we immediately proceed to the creation of the depths necessary for business at the berths No. 14-17. The Kernel company, for its part, has committed to guarantee the volume of cargo traffic of at least 6 million tonnes per year. This will contribute to a quick payback on capital investment of the authority.”
He also added that the implementation of this capital development project will help improve the conditions for the export of Ukrainian enterprises’ products, increase ship calls and create about 250 new jobs in the Port of Chornomorsk.