Kubrakov: The existing system of port fees is ineffective

During the conference, three topical issues regarding the ports of Ukraine were discussed.

This was reported by the head of the We Build Ukraine think tank, Oleksandr Kubrakov.

According to him, the Sectoral Conference, organized by the think tank, raised the issues of developing port and railway infrastructure, launching aviation, and attracting project financing.

“Regarding ports, three issues can be identified that our team worked on, among others, and that need to be worked on further,” Kubrakov noted.

Among them:

— Port dues. The existing system is inefficient and does not allow for the full use of funds for the intended purpose for the development of port infrastructure. The situation could be leveled by creating a specialized Fund (for example, like the Road Fund) or by excluding port dues from the tax base.

— State ownership. This refers to the excessive participation of the state in the economic activities of ports, which ultimately loses significantly in efficiency to private entities. All existing forms of attracting investments – lease, concession or privatization – require legislative changes to increase their attractiveness to investors.

— Inconsistency of state policies, and in some cases direct contradictions in legislation, in particular regarding construction on water fund lands, restrain development and hinder private investment in the industry.

He also noted that the Ukrainian transport infrastructure in the post-war period will require investments in the amount of at least $40 billion.

“This applies to both private projects and those implemented at the national and local levels, most of these projects have a significant impact on the defense capability of our state,” Kubrakov emphasized.

Recall that in January this year, Oleksandr Kubrakov was appointed advisor to the head of the Ministry of Defense, Rustem Umerov. In the ministry, he deals with issues of supply and logistics.