The resumption of the Mykolaiv ports will reduce the cost of logistics for exporters

The launch of Mykolaiv and Olbia ports can significantly strengthen Ukraine's export potential

The resumption of full-fledged work of Mykolaiv ports – “Mykolaiv” and “Olvia” – can reduce the cost of logistics for domestic exporters and significantly strengthen the export potential of Ukraine. This is stated in the article of the CTS.

Nikolaev ports remain blocked from the beginning of a full-scale invasion. The enemy is close to the Bug-Dnieper-Liman Canal (BDLK) on the captured Kinburn Spit, and controls access to the sea. According to the head of the USPA Yuriy Lytvyn, these ports are ready to resume operation, but only for security reasons the military does not allow them to be launched.

The resumption of full-fledged operation of this logistics route can significantly affect the competitiveness of Ukrainian exporters. In particular, to improve the logistics of agricultural products, since the Mykolaiv port before the great war occupied leading places among the seaports of Ukraine in the transshipment of such goods.

At the same time, the work of the ports of the region could contribute to the export of goods of the steel nomenclature. In 2021, the operators of the terminals of the Mykolaiv water area handled 1.7 million tons of rolled metal, 1.2 million tons of cast iron and 5 million tons of ore.

«The port of Mykolaiv acquired special importance for the company ArcelorMittal, which through it shipped its billets, wire rod and fittings. And 10 years before the start of the Russian invasion, in 2012, it itself became a stevedore and gradually increased transshipment at its terminal, which «in the best of times» reached 2 million tons, and ambitious plans provided for an increase in transshipment to 3 million tons in the future, «the report said.

The company invested heavily in the construction of warehouses, the purchase of equipment and cranes, since this direction was more profitable than the ports of Odessa, due to the shorter logistics leverage.

The need to open the ports of Mykolaiv is urgent not only because of the reduced cost of logistics or improved convenience, but also because of the fear that the existing ports will eventually be unable to cope with the growing volumes of cargo. Through the ports of Greater Odessa, 75% of sea exports now go.

«Such a risk is significant due to the limited capabilities of ports and railway stations, as well as the risks of an additional reduction in throughput due to damage as a result of shelling. Another risk of reducing throughput is the shortage of employees of specialized specialties in connection with mobilization processes,» the press service of Metinvest noted.

The company notes that the opening of Mykolaiv ports will significantly help to diversify cargo traffic and reduce such risks. And specialized terminals for grain reloading allow you to maintain the quality of products and, accordingly, can provide a higher price for products and foreign exchange earnings in the country. But such a scenario is realistic in case of de-occupation due to the actions of the Armed Forces of certain territories of the Kherson region on the left bank of the Dnieper, they added to Metinvest. This means safely following the BDLK vessels to enter the Black Sea.

«There must be someone who will apply. On the one hand, there are really reasonable risks. On the other hand, we need a more active dialogue with our military. To understand what means of destruction Russia has in the area of the same Ochakov, what means we have to counter this, etc. Understand exactly how commercial fleet can be a target. It is clearly not as attractive as the port infrastructure, which the enemy hits with ballistic missiles. It is hardly correct to believe that the situation that was two years ago has not changed at all. I think that such a dialogue, during which the business community and the military would receive more information from each other, is currently lacking,» says Viktor Berestenko, President of the Association of International Freight Forwarders.

Even today, it would be possible to look internationally for mechanisms that would compensate for the loss of shipowners, ensure the restoration of the shipbuilding industry, Berestenko added.

«We do not see any movement in this direction. Business is trying to do something alone and alone. This is not a strategic approach, «he concluded.

As GMK Center reported earlier, in January-June 2024, Ukrainian ports handled almost 52.7 million tons of cargo against 31.3 million tons in the same period in 2023. Of this volume, 33.5 million tons were products of Ukrainian farmers.

In 2023, the ports of Ukraine increased cargo transshipment by 5% y/y – up to 62 million tons, 5.9% of the total cargo turnover was iron ore transshipment – 1.9 million tons. This can be considered the beginning of the recovery of the industry after a difficult 2022, when port cargo turnover collapsed 2.6 times compared to pre-war 2021.