Ukraine launches urgently needed port sector reforms
On the heels of the Ukrainian Port Forum-2018 on May 31st, the flagship event for Ukraine’s port infrastructure development, the country has launched a new World Bank supported technical assistance funded by the Public-Private Infrastructure Advisory Facility (PPIAF) to help position the port sector for more private investment, says Ukrainian Sea Ports Authority.
With its geographically favorable location at the crossroads of Europe, Asia, and the Middle East and its large and rapidly growing grain and agricultural outputs, Ukraine seeks to improve its logistics sector and facilitate more international trade. One piece of this puzzle requires urgent modernization of Ukraine’s 13 seaports and an overhaul of the current outdated port management model.
The technical assistance launched this week will help Ukraine identify key areas to focus on as it proceeds with reforming its port sector. The assistance will deliver a review of port sector legislation, an assessment of the current state of port infrastructure, and a review of the current governance structure, along with a roadmap to help move the sector to a full landlord model.
Ukrainian Sea Ports Authority CEO, Raivis Veckagans, notes that “Sea port reform has been ongoing since 2013 with the separation of operational and administrative activities. Since that time Ukrainian Sea Ports Authority has set ambitious goal to significantly increase current handling of 130 million tons of cargo per year, achieve European standards of service, and promote Ukraine as an important player on existing and emerging global trade routes. We believe that reform of port management being launched next week with the support of World Bank and PPIAF will enhance opportunities to increase private participation and attract leading global players to achieve these goals”.
Juan Gaviria, Practice Manager for Transport in Europe notes that “The World Bank has a substantial advisory services and investment portfolio across all transport sectors in Ukraine supporting the Logistics Strategy and Action Plan; ports, inland water transport, railways modernization, road corridor prioritization and strategic investment. We recognize the importance of improving the port sector to better connect to the other modes of transport and foster greater trade and promote inclusive economic development”.
PPIAF Program Manager, Francois Bergere notes that “attracting private investment into infrastructure requires putting the necessary ‘upstream’ institutional conditions in place. We have been providing support to Ukraine’s transport subsectors over the past few years to help foster such an environment favorable to private investment and are happy to continue this work in Ukraine’s port sector, where there seems to be a lot of momentum.”
The Public – Private Infrastructure Advisory Facility (PPIAF) is a multi-donor technical assistance facility that is financed by 11 multilateral and bilateral donors. Established in 1999 as a joint initiative of the governments of Japan and the United Kingdom, working closely with and housed inside the World Bank Group, PPIAF is a catalyst for increasing private sector participation in emerging markets. Its mission is to help eliminatepoverty and increase shared prosperity in developing countries by facilitating private sector involvement in infrastructure.