Reduction in port charges will increase the competitiveness of Ukrainian grain

At the next meeting of the Cabinet on Wednesday 6 September the decision was made to reduce the rates of port charges by 20% and also a reduction in the rate of payments of dividends for ASD (Admininstratsii of seaports of Ukraine) from 75% to 50%. This ruling will come into effect from 1 January 2018.

"We will gradually reduce the port charges, as the business constantly reminds us that our ports are too expensive. We have the opportunity to increase their competitiveness by reducing port charges," - said the Prime Minister. Groysman.

He instructed the Ministry of Infrastructure jointly with the Ministry of economic development, Ministry of justice and Disregulatory service within two months to take action to reduce these fees.

Reduction of port charges will allow to reduce tariffs for grain handling that will improve domestic prices. Previously in domestic ports, the cost of transshipment of grain from the terminal to the ship was the highest in the world and was 20-25 $/t In the last two years government policy aimed at the reduction of port charges and simplification of procedure of certification of grain that is exported, thus reducing the cost of port handling.

Construction of new terminals increased the competition and reduced the cost of transshipment to 12-16 $/t

For comparison, the tariff for transshipment of grain in us ports is 6-8 $/t in the European – 7-8 €/tonne.