On the second attempt, an auction was held for the privatization of the Bilhorod-Dnistrovskyi Seaport.
The first auction for the privatization of this object did not take place due to the lack of participants. This time, three companies participated in the auction, and the winner was LLC Ukrdoninvest, which is part of the same group of companies mainly operating in the energy sector. According to YouControl, their owner is Vitalii Kropachov.
The final offer is just over UAH 220 mln, and now the winner has 20 working days to pay the proposed price.
The privatization of the Bilhorod-Dnistrovskyi port is the second case of the sale of a seaport. Recently, the Ust-Dunaisk seaport was sold for more than UAH 201 mln. Compared to this result, where the initial sale price of the lot more than tripled, the result of the sale of the Bilhorod-Dnistrovskyi port is more modest. The cost increased by slightly more than 17% — the initial sale price at the first auction was UAH 187 mln. But there were relevant prerequisites for this.
First of all, due to the full-scale invasion, the Bilhorod-Dnistrovskyi port is blocked from the sea. Only since May last year, did the company begin to work in the “dry port” mode — a transshipment of metal products and grain cargoes for the Danube ports takes place there.
Secondly, the proposed price was influenced by the unprofitability of the port and the amount of its debt. In 2021, the company transshipped only 2,000 tons of cargo and ended up with a negative result of UAH 28 mln. In 2022, the company’s revenues increased, but for 9 months of operation, the port again ended up with UAH 2.9 mln of losses. The amount of the debt of the state-owned enterprise is also considerable: as of September last year, it amounted to more than UAH 104 mln, of which more than UAH 13 mln is for wages.
So, in total, according to the terms of sale, the buyer will be obliged to pay not only the price offered by them, considering 20% VAT, but also to repay the company’s debts on wages and to the budget in the amount of at least UAH 73 mln.
In addition, the SPFU notes that the resumption of full-fledged activities of the port is possible only with attracting significant investments for the modernization of equipment, the construction of modern logistics facilities, and dredging. This will prompt the development of the enterprise and the creation of new jobs.
Let us remind you that the total winning price at auctions for the privatization of public property since the beginning of the year has already exceeded the mark of UAH 1 bln.
This publication was prepared within the framework of the program on institutional development of the organization, which is carried out with the financial support of Sweden.
Opinions, conclusions, or recommendations are those of the authors and do not necessarily reflect the views of the Government of Sweden. The authors are solely responsible for the content of the publication.
