Ukraine is launching a large-scale public-private partnership project in the field of port infrastructure, the first of its kind since the beginning of the full-scale invasion. The First and Container Terminals of Chornomorsk Port have been selected for concession. This is expected to be the largest investment in the history of Ukrainian ports: hundreds of millions of dollars are planned for modernization, and revenues to the state and local budgets will exceed 1.1 billion USD.
This is reported by Finway
Concession Terms and Investment Potential
The project stipulates that strategic assets remain in state ownership. The investor does not purchase the port but assumes responsibilities for modernization and management based on a transparent and long-term contract. The state retains control over the fulfillment of obligations, and the legal framework clearly regulates all stages of the partnership.
The scale of investment is extremely significant: it is planned to update berths, equipment, and create over a thousand new jobs with guaranteed social standards. Within three years, it is planned to restore container traffic to 250,000 containers per year, with further progress towards pre-war levels.
“The state is not selling anything and does not relinquish responsibility. Strategic assets remain in state ownership.”
Interest in the project has been expressed by over 40 international port operators and investors, indicating its recognition as a promising asset among global industry players. Among the main factors driving market growth are imports for the country’s recovery and transit potential, particularly within the Trans-Caspian route Europe–China.
Social, Environmental, and Transparent Guarantees
A key task of the concession is to ensure the full functioning of the terminal, which will create additional revenue for the state and update the material and technical base. Special attention is given to social guarantees for employees: all 1,240 port staff will transition to the new operator with unchanged or increasing salaries, a collective agreement will be concluded for a minimum of five years, and trade unions will be directly involved in preparing and monitoring the fulfillment of the agreement’s conditions.
The environmental component is also under strict control – the concession requires compliance with the standards of the International Finance Corporation and EBRD, conducting strategic environmental assessments and environmental impact assessments. Working with “dirty” cargoes is prohibited, and all environmental requirements are enshrined in the concession agreement and are mandatory for compliance.
The concession transfer process is maximally transparent: the International Finance Corporation and the European Bank for Reconstruction and Development participate in it, ensuring equal conditions for all investors and independent oversight at every stage. All decisions of the competition commission, which includes representatives from ministries, local authorities, trade unions, and independent experts, are publicly disclosed, and the procedure itself complies with European directives.
Additionally, a “competitive dialogue” mechanism is used, allowing the selection of the most advantageous proposal for Ukraine based on a comprehensive analysis of the experience and capabilities of companies, as well as conducting security screenings to exclude companies associated with the Russian Federation or sanctioned individuals.
In conclusion, the implementation of the concession at Chornomorsk Port is expected to serve as an example of responsible, transparent, and effective public-private partnership aimed at the restoration and development of Ukrainian port infrastructure to European standards.