UDS explained what prevents the company from finally breaking even

The Ukrainian Danube Shipping Company also summed up 2024 and shared its anti-crisis strategy.

This was reported by the UDS press service.

The company noted that 2024 will be remembered by the Danube people as a time of testing for stability and endurance.

“The crisis hit everyone. Most shipping companies froze investments and stopped repairs, many owed their crews, were forced to work in the red, cannot repay loans, and put the fleet in a slump,” the UDS noted.

The anti-crisis strategy of the Danube Shipping Company was as follows:

— not to allow salary arrears;

— not to agree to the fleet working in the red;

— not to stop the modernization program;

— not to weaken control, not to allow the return of corruption schemes;

— to continue cooperation with IFC, because a strategic partnership with the World Bank Group will help the UDS overcome the crisis and move forward.

As a result, sailors and shore services received salaries on time – every day.

The work of the river cargo fleet was profitable, since each voyage provided the company with sometimes minimal, but profitable profit.

“The first modernized vessel is already operating and demonstrating brilliant results, the foundation has been laid for the transformation of the Soviet fleet into a modern one. Transparent and direct relations with customers have been preserved, there are no thefts of fuel or spare parts, unaccounted for fleet operations. UDP, for its part, fulfilled all the conditions for obtaining a credit line on preferential terms, having received favorable reviews from international partners,” the report says.

At the same time, UDS shared that several factors prevent the company from finally reaching breakeven:

— maintaining a huge number of loss-making assets – ship graveyards, for which the company pays fees, dozens of idle sea and passenger fleets; real estate, land plots, for which large taxes are also paid;

— a large social burden, which no private shipping company has;

— the need to use the company’s own working capital for modernization instead of the planned preferential financing from donors;

— the lack of minimal incentives for the development of Danube logistics, which would help the state-owned company compete for cargo traffic with Odesa ports.

“We do not lose hope that next year, 2025, we will be able to get rid of at least some of the negative factors, feel a second wind, and continue the development program,” the UDS concluded.

Read also: UDS appealed to the Cabinet of Ministers due to the increase in Ukrzaliznytsia tariffs.