In Bilhorod-Dnistrovskyi MTP, the USPA was accused of disrupting the attraction of investors to the port industry

The port claims that the international metallurgical corporation, which controls 17 port terminals, could take part in the privatization auction.

This was reported by the first deputy director of the Bilhorod-Dnistrovsky port,  Igor Bilyk.  

According to him, the international corporation ArcelorMittal in 2022 expressed interest in participating in the privatization of the state enterprise “Bilhorod-Dnistrovsky MTP”.

“The second largest metallurgical company in the world, ArcelorMittal, acquired the stevedoring company “Nikmet-Terminal” back in 2012, as the Mykolaiv port became the main sea gateway for the company in Ukraine. The amount of the transaction was not announced, but according to information in the press, it amounted to from 20 to 75 million dollars. At the time of the purchase, the transshipment volume was 750 thousand tons per year, after the acquisition it increased to 2.5 million tons,” said the first deputy director of the enterprise.

In particular, according to him, in September-October 2022, the company delivered 28 thousand tons of products (rods) to the Bilhorod-Dnistrovsky port, with plans to deliver 50-60 thousand tons of rolled metal and 20 thousand tons of pig iron monthly. In October, ArcelorMittal appealed to the Prime Minister of Ukraine to promote and provide assistance in restoring the ship access to the Bilhorod-Dnistrovsky sea port.

In the appeal, the company also indicated its interest in participating in the privatization of the State Enterprise “Bilhorod-Dnistrovsky MTP”, while guaranteeing the provision of ship access. Then the Prime Minister instructed the Minister of Infrastructure, the Minister of Finance and the Head of the State Property Fund to promptly consider the appeal. As a result, the USPA was instructed to carry out work to restore the ship access to the port.

Already in December 2022, a memorandum was signed between the SE “USPU”, SE “BDMTP” and the company that provided logistics for ArcelorMittal products under the contract.

“The parties assumed obligations, including the USPU to ensure the deepening of the approach channel and the port water area no later than February 2023 and maintain the declared depths. In turn, the port was to carry out regular loading and unloading operations on vessels in volumes of at least 70 thousand tons per month,” emphasized Ihor Bilyk.

He also noted that according to the technical specifications for operational deepening of the bottom, the approach channel in February 2023 would have a depth of 3.6 m. Vessels with a draft of 4 meters could enter the port.

“In March 2023, an auction was to be held for the privatization of the Bilhorod-Dniester port. The foreign investor expected to bring at least one vessel to the auction to make sure of the working condition of the canal and the water area. But, to the great regret and disappointment of ArcelorMittal, the USPA failed the work. Dredging works started only in February 2023, the vessels could not enter on time and the cargo had to be transported from the Bilhorod-Dnistrovskyi port to other ports,” the official said. According to him, the dredging works were completed only in the summer of 2023, but after measurements, the depth of the canal was 2.4 m instead of the promised 3.6 m. At the same time, before the start of the work, the depth of the canal was 2.6 m.

Read also: The USPA told why they are not carrying out dredging in the Bilhorod-Dnistrovskyi port.