Ukraine announces winner of second seaport concession tender

The winner of the concession tender of the Olvia
Seaport was QTerminals from Qatar, the Infrastructure Ministry announced in a
Jan. 24 press release. The company has committed to investing UAH 3.4 bln
(about USD 140 mln) within five years into the seaport and UAH 80 mln (about
USD 3.3 mln) in local infrastructure. The company will also make a total annual
concession payment of UAH 82 mln (about USD 3.3 mln) per year. QTerminals was
founded by Mwani Qatar (51% shareholder) and Milaha (49% shareholder) and
provides container, general cargo, livestock and offshore supply services in
Qatar’s Hamad Port.

Olvia is a small port located in the Mykolayiv region,
specializing in the shipment of dry bulk cargo (grains, building materials,
metals). In 2019, it processed 3.1 mmt of goods (1.9% of Ukraine’s total)
making it the eighth-largest seaport in Ukraine out of 13. In 2017, its revenue
was UAH 380 mln and its net profit was UAH 101 mln.

Recall, last week the government announced the results
of its debut concession tender, based upon which the commercial rights to the Kherson Seaport
were granted  for a UAH 300 mlm investment commitment and annual payment
of UAH 12 mln plus 7% of revenue.

Andriy Perederey: The Olvia concession tender represents among the biggest foreign
investments in Ukraine’s seaport infrastructure in the last decade. Large
committed investments will lead to the seaport’s improved efficiency and
increased cargo flow through its infrastructure.