European Business Association proposes to reduce port charges in Ukraine from 2021
Concerned about the decline in business activity and reduced production in Ukraine, representatives of the European Business Association (EBA) asked Prime Minister Denys Shmyhal to initiate a reduction in port charges in Ukraine from 2021. In their opinion, such measures should retain the country’s export potential and ensure the competitiveness of Ukrainian enterprises in the current crisis, which was caused by the COVID-19 coronavirus pandemic.
According to the calculations of the member companies of the EBA logistics Committee, with a 20% reduction in port charges, Ukraine can be expected to maintain its main export-oriented industries and increase the annual cargo turnover in seaports to 190 million tons in 2021-2025.
«This will have a serious economic effect by attracting cargo flows to ports. For example, a 20% reduction in port charges from January 1, 2018 allowed increasing cargo turnover in Ukrainian ports by 21% and reaching the level of 160 million tons in 2019. Currently, the potential for reducing port charges remains at the level of 40-50% to increase the competitiveness of Ukrainian ports», it is noted in the message of the logistics community.
It’s noted that, according to The World Bank experts, the potential for reducing port charges in Ukraine is 63%.
