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Specialist consortium formed to improve logistics in Black Sea region
28-Oct-2008
BMT Baxter Eadie, a subsidiary of BMT Group Ltd, has joined with specialist consultants Corporate Solutions and Carl Bro, to form a consortium to undertake a Ukraine Port Development Feasibility Study. The study will have a significant impact on the country's infrastructure as it will, ultimately, identify areas for port capacity expansion.
The two year study, which began in September 2008, was commissioned by the European Union (EU). It will contribute to the development and promotion of transport in and through the Ukraine, focusing on a west-east axis from Europe, across the Black Sea, the Caucasus and Caspian Sea to central Asia.
The project will enhance the development of the Ukraine's three main ports and contribute to an improvement in the overall logistic capability, interoperability and multimodal transport of the Black Sea region, concentrating on the ports of Illychivsk, Odessa and Yuzhny. The study will identify areas for significant investment and increased enhanced capacity, in order to cope with the Ukraine's increased economic activity and flows of exports, imports and transit cargoes.
Ukrainian ports handled 123.7 million tonnes in 2007 comprising 54 million tonnes of export cargoes, 13 million tonnes of import cargoes, 14 million tonnes of transit cargoes and the 21 million tonnes of cabotage cargoes carried between Ukrainian ports. Of the total 18% was liquid bulk, 50% dry bulk and 32% general cargo. The main commodities moving are ferrous metals (25 million tonnes), oil and oil products (14 million tonnes), coal (15 million tonnes) and grain (8 million tonnes).
The current perception is that the Ukraine's ports infrastructure will soon be unable to handle the predicted growth in domestic trade. The volume of containerised cargo increased from 1.3 million tonnes in 1998 to 6.1 million tonnes in 2007. The traffic increase, driven primarily by the increase in imports, fuelled the rise in GDP over the past decade.
In addition, the EU's objective to promote traffic along the TRACECA corridor will put further pressure on the ports' limited capacities.Dick Scott Kerr, Managing Director of BMT Baxter Eadie, said: "The Ukraine is at a critical juncture in its economic development; and the ports infrastructure must be able to support the growth in trade that the country is experiencing. GDP growth must not be constrained by the country's transport sector; the enhancement of port facilities is now required to support this progress.
"This important project will utilise BMT Baxter Eadie's considerable global experience of port planning and appraisal, particularly in emerging markets, to ensure that the development projects identified are the most critical for the improvement of port capacity and performance and contribute to an exciting area of Black Sea port growth."
The study will include:
- A review of the markets and traffic flows of the Ukraine,
- A review of existing port developments and master plans as prepared by the individual port managements (these tasks will cover physical development concepts and projections of traffic levels)
- Identification of the ports' investment needs,
- Technical and economic feasibility studies,
- Preliminary engineering designs.
- Preparation of international tender documents for those projects that are considered suitable for private sector investment.
An important objective of this study will be to secure a co-operative framework between the Ukraine and the EU by actively contributing to the development of the country's port sector. Study tours will be organised for managers from the three ports to EU countries, thereby further strengthening European co-operation.