The UDS answered the most common questions about fleet modernization

The management of “Ukrainian Danube Shipping Company” commented on how the UDS plans to return the raised funding and who will work on the modernized vessels.

In particular, as the company said, access to financing from international donors does not mean that the company will immediately receive all the funds allocated under the program.

“Investments are gradually attracted for specific modernization works. The profitability of transportation on modernized ships is many times higher (fuel savings, lack of downtime, repair costs, etc.). After the repair, the new vessel starts to work and immediately begins to return the invested investment,” the UDS assured.

The company also explained why vessels that had previously been repaired were also subject to modernization. So, during modernization, the “stuffing” is replaced, and the body remains, the UDS explained.

“Therefore, at our Kili plant, we have to qualitatively restore the ship’s hull. Regarding equipment repair. All units, units, spare parts that can still be used on other old ships are dismantled and stored during modernization. Our team, which accompanies modernization in Austria, is responsible for this,” the company said.

It is also noted that the “best teams” that the company already has will work on modernized UDS vessels.

Regarding the question of whether the modernization of the fleet is related to privatization, the UDS answered that these are “absolutely different things.”

“UDS is a joint-stock company, but we lacked such an important element of corporate governance as a supervisory board. This year the council should appear. Supervisory boards are currently being formed at many large Ukrainian state-owned enterprises. This is a requirement of the law, and it greatly simplifies attracting investments from international donors. Privatization is completely different. We do not know anything about the UDS’s privatization intentions,” the UDS summarized.

USM previously reported that UDS and Nibulon plan to join forces for development on the Danube.