MINISTRY OF INFRASTRUCTURE OF UKRAINE

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Industry

Cargo transportation in Ukraine in January, 2010 was increased by 17,4 % - to 54,3 million t.

In Ukraine in January, 2010 it is transported 54,3 million t of cargoes by the Ukrainian transport enterprises that is 17,4 % more than the volume of cargo transportations in January, 2008. It says about it in the message of the State Committee of Statistics of Ukraine. The cargo turnover has been increased by 15,8 % what makes 27,3 billion t/km from the volume of January, 2009. The rail freight turnover has been increased by 9,2 %. The cargo turnover of Lvovskaya railway has grown by 33,6 %, on Donetskaya one - by 14,9 %, Yuzhnaya - by 12,7 %, Yugo-Zapadnaya - by 6,1 %, Pridneprovskaya - by 5,1 %, Odesskaya - by 4,7 %. The increase in a cargo turnover has taken place also in the field of river transport (by 74,3 %), pipeline (by 29,8 %), aviation (by 7,1 %), automobile (by 3,5 %), marine (by 0,1 %). Transportation of cargoes by railways in comparison with January, 2009 has grown by 12,9 %, including departure of cargoes - by 10,9 %. Sending of cargoes has increased on the Pridneprovskaya railway - by 29,8 %, Yuzhnaya - by 18,6 %, Donetsk - on 1,2 %, Odesa - on 0,9 %, Lvov - on 0,2 %. On the Yuzhnaya railway departure of cargoes has decreased by 3,2 %. Trabsportation of iron and manganous ore has increased by 47,2 %, wood cargoes - by 46,9 %, ferrous metals breakage - by 44,4 %, coke - by 21,6 %, ferrous metals - by 16,3 %, chemicals and mineral fertilizers - by 14,5 %, oil and mineral oil - by 8,3 %. Cement sending has decreased by 44,8 %, building materials - by 20,0 %, grain and grinded products - by 19,0 %, coal - by 1,4 %. Domestic sea and river merchant marine fleet have executed transportation of cargoes in 0,5 million volume t that is 6,1 % more than in January, 2009. Transportation of cargoes by river transport has grown by 42,2 % from the volumes of January, 2009, sea transport has decreased by 16,4 %. Foreign transportations of cargoes by sea transport were reduced to 17,5 %, river have grown - by 44,4 %. The cargo handling volume in trading and fish ports and on industrial berths (sea and river) has decreased for 0,7 % and makes 11,8 million t. Handling of inward cargoes has increased by 37,6 % export - by 18,2 %. Handling of transit cargoes was reduced - by 30,3 % and internal connection - to 36,5 %. Quantity of the processed ships - foreign and infraht - it was reduced to 4,3 % and has made 1,3 thousand units. By the motor transport enterprises (taking into account transportations by physical persons-businessmen) for January, 2010 6,6 million t of cargoes is transported that is 4,5 % less than the volume of transportations of cargoes in January, 2009 and the cargo turnover in volume 1,8 billion t/km which has grown by 3.5 % is executed. By the main pipelines in January, 2010 it is transported 17,8 million t of cargoes that is 38,7 % more than in January, 2009. Gas swapping has grown by 59,1 %, ammonia - 3,8 times. Oil swapping was reduced to 19,7 %. Gas transit has grown 2,1 times, ammonia in 3,5 times. Oil transit has decreased by 30,6 %. For 2009 by air it is transported 5.6 thousand t of cargoes that is 2,6 % more than volume of January, 2009. RBC-Ukraine

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The Ministry of Transport and Communications suggests to simplify customs registration of containers in sea ports

The Ministry of Transport and Communications suggests the Cabinet to allow to cargo owners to spend customs registration of the cargoes imported in containers, in territory of sea trading ports. The given decision of The Ministry of Transport and Communications suggests the government to introduce changes into the decision of the Ministry №1989 from December, 24th, 2003 «Admission Questions through frontier of automobile, water, railway and air vehicles, carriers and cargoes which are being transported by them». Owing to entering of the given changes cargo owners can choose a place of customs registration of the cargoes imported in containers, between a check point in territory of sea trading ports and extraport cargo customs terminals. Earlier the Ministry by the decision № 279 from March, 5th, 2009 has defined that since January, 1st, 2010 customs registration and the control of the goods imported in containers should be carried out behind territory of the sea ports check points. At the same time, according to an explanatory note to the decision project, the organisation of customs procedures in extraport cargo customs terminals demands presence of the developed infrastructure of "dry ports» and a corresponding transport infrastructure. At present there is no such infrastructure in the country, and its development demands considerable time and investments. In the message it is noticed that owing to the ancellation of customs registration and the control of the imported goods in sea ports since 2010, there was an essential threat of loss of container turnover volumes. As it was informed earlier, the greatest capacities on processing of containers in Ukraine have got the Odesa sea commercial port and Iliychevsk sea commercial port (the Odesa region). www.ukranews.com

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The cargo turnover of sea commercial ports of Ukraine for January, 2010 has been increased by 4,9 % – up to 8,175 million tons

The cargo turnover of sea commercial ports of Ukraine for January, 2010 has been increased by 4,9 % in comparison with the last year’s index – to 8 million 175 thousand tons. Results of work of the country transport industry testify to it, published by the Ministry of Transport and Communications of Ukraine. Also it was informed that the volume of cargo transportations by railway of Ukraine in the accounting period has grown by 14,8 % in comparison with January, 2009 - to 29 million 860 thousand tons. Let's remind, that sea commercial ports of Ukraine in 2009 have reduced a cargo turnover to 17 % in comparison with 2008 – to 109,716 million tons. PortNews

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"Port discounts" for foreign going vessels

Ministry of Transport and Communications of Ukraine with the order from 21.01.2010 N 19 has introduced changes into Dues and payments for services which are rendered to foreign going ships in the seaports of Ukraine, which state, that the foreign going cruise ships of the B-group (except of those who make passenger-cargo voyages) which navigate during the period from November, 15th till March, 15th, get the discount of 50 percent from rates of all sorts of Dues and payments. The order is registered in the Ministry of Justice on February, 2nd, 2010 on N 124/17419 and comes into force from the date of the official publication. Watch the full text of the Order here ЛIГАБiзнесIнформ

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Metal rolling import has increased by 400 %

The Ukrainian companies have increased metal rolling import more than five times in January, 2010, according to the preliminary data, in comparison with the similar period of 2009, and by 32,3 % in comparison with December-2009 — up to 80,6 thousand tons. The press service of Open Society "Ukrainian mountain-metallurgical company" informs about it. The largest stake in the import structure of metal rolling in January takes hot-rolled sheet — 33,1 % (15,6 % following the results of 2009), the second place takes hollow billet (23,9 %), the third and the fourth places — circle and zinced sheet with stakes 11,5 % and 10,5 % accordingly. According to UGMC experts, the sharp turnround in volumes of hot-rolled sheet import in January is caused by its active purchase by tubular and car-building plants (almost 88 % of supplies). Such producers as Open Society "Magnitogorsk metallurgical industrial complex" and Open Society "Severstal" have 84,7 % and 10,2 % of all deliveries of hot-rolles sheet. The armature makes 2,6 % in the structure of supplies in January, 2010 (7,7 % following the results of 2009). Volumes of import of the given production have decreased by 65,8 % in comparison with December, 2009 that is connected with decrease in building activity during the winter period, and also parity internal and import prices. Two thirds of all imported armature is produces Open Society "Chelyabinsk metallurgical industrial complex" ("Mechel"). The basic importers of metal rolling following the results of January, 2010 were the enterprise of tubular branch having a stake 44,3 % in comparison with 40 % following the results of 2009. The second place takes the enterprise of machine-building branch with a stake 20,8 % in comparison with 17,2 % following the results of 2009. The metal-trading companies close a circuit of branches-leaders on deliveries of imported metal rolling, their stake makes 14,6 % (0,6 % following the results of 2009). According to president of the Ukrainian association of metal traders (UAM) Andrey Fedoseyev, metal rolling consumption in Ukraine in 2009 has decreased by 32,5 % in comparison with 2008 — to 5 million 330,228 thousand tons, import — by 54,8 %, up to 797,828 thousand tons. Thus last year the tubular enterprises have reduced purchases of domestic and import metal rolling up to 28,4 % — to 1 million 504,257 thousand tons, building — by 70 %, to 71,050 thousand tons, railway — have increased by 47,5 %, to 102,980 thousand tons, metal ware — have reduced to 24,9 %, to 427,908 thousand tons. The metal-trading enterprises, including small ones, have lowered metal rolling purchases by 45,8 % — up to 1 million 418,945 thousand tons, mountain-metallurgical — have increased by 44,1 %, to 1 million 64,464 thousand tons whereas the machine-building have decreased by 58 % — to 597,931 thousand tons. The stake of metal traders in consumption total amount in home market following the results of 2009 has made 27 %, the trumpet enterprises — 28 %, car-building – 11%, - 20%, metal ware - 8%, building - 1%, railway - 2%, others - 3%. www.ukrrudprom.com

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Wheat and corn world production forecast in 2009/10 MY newly upgraded – F.O. Licht

Analysts leading German consultancy F.O. Licht increased again its forecast for world wheat production in 2009/10 MY up to 675.46 million tonnes (compared to 673.98 million tonnes, expected in January). In general, according to the Agency’s February estimations wheat gross yield of this season is only slightly reduced in comparison with the high rate of 2008/09 MY (684.15 million tonnes), which will lead to a new growth of the carry-over stocks and a fall in world prices. It should be noted that the main factors to improve prediction experts call a high yield of wheat in Russia, Ukraine and Kazakhstan. Thus, the growth of production in these countries will fully compensate for losses from the reduction of the area under wheat in the EU and poor harvests in Syria. In this case, increase of the wheat production is characteristic of the Black Sea countries since 2008, their position in world trade will improve. While Syria, which is also one of the leading exporters, will be forced to give up on foreign supplies, if weather conditions do not improve. With regard to the corn harvest, according to F.O. Licht updated estimates cereal production will be 775.65 million tonnes against 769.83 million tonnes in the previous forecast and 781.83 million tonnes last year. In this case the main reason for forecast increase is its revision towards the corn yield data increase in the U.S. by 26.6 million tonnes – up to 334 million tons. APK-Inform

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Record indexes of ship passes through deep-water canal Danube - Black Sea are fixed

According to the State Enterprise "Delta-Lotsman", on January 26, 2010 trough the water-deep ship canal Danube - Black Sea a new achievement for indicators of ship passes is registered. From 8:00 am January 26 to 8:00 am January 27, despite the difficult weather conditions, through mouth Bystroe 14 vessels passed. This is the second result by the number of ships passes per day since April 2007 (the date of Ukrainian DWSC reopening). During the same day through the Sulina Canal (Romania), only two vessels passed. The absolute record per day was fixed on December, 4 2009. Then through DSC 15 vessels passed. Totally for January 2010 103 vessels passed via Danube-Black Sea canal, and 65 via the Romanian Sulina canal. Ukrainian DSC has proved its competitiveness. Steady growth of ship passes through the mouth Bystroe is the best proof of the fact that many owners have recognized the advantages of Ukrainian waterway. During January, 26 through DSC Danube-Black Sea 17,5 thousand tons of various cargoes were carried. Experts predict that the cargo traffic through the DSC in 2010 will be significantly higher than in the past year. МТСУ

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Ministry of Finance of Ukraine proposes to increase the VAT up to 25%

In order to protect domestic market from import keeping within the terms of the WTO and credit support to domestic enterprises at the expense of consumers paid VAT, it is advisable to increase the VAT rate up to 25%, to replace the income tax for a tax on the cost of enterprises and to introduce the VAT as a source of the formation of retirement Fund and other social funds, instead of charges on payroll. The director of the Department of Macroeconomic Forecasting, Ministry of Finance of Ukraine Vladimir Parnyuk considers so, Zerkalo nedeli says. Vladimir Parnyuk also has noted that in the structure of goods and services production an intermediate consumption makes 56%, whereas in developed countries this share is far below. "We need to change this structure, to give impetus to the development of knowledge-based industries," - he said, proposing to move to the taxation of cost for the acquisition of enterprise resources, but not income taxation.

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The government of Ukraine has allocated about ,2 million for a general reconstruction of rescue boat «Sapfire»

The government of Ukraine has entrusted the Ministry of tranport and communications to make a general reconstruction of rescue boat "Sapfire" at the expence of the Stabilization fund, as it says in the decree of the Cabinet from January, 27, 2010, published on the site of the government. 9 million 997,1 thousand UAH (about $1,2 million) has been provided for this purpose. PortNews

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Cargo Turnover of the Odesa Port in January 2010 (online data)

Cargo handling of the Port of Odesa for Оanuary 2010 reduced by 103,1 thousand tons or 4,6% to 2.145,8 thousand tons against JAnuary, 2009. Despite some decline of port throughput, in January 2010 Odesa port has increased handling of fluid cargoes by 30,7 thousand tons or 3,1% against January 2009. Container handling of the Odesa port for January – December, 2009 made 16.697 TEU (238.6 thousand tons). The increase in tons has made 27,9%. Port.Odesa.Ua

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The cabinet of Ukraine has affirmed the list of investment projects in the Ukrainian sea commercial ports in total sum 21,8 billion UAH.

The cabinet of Ukraine has affirmed the list of investment projects in the sea commercial ports of Ukraine. The corresponding order from January, 6th in 2010 №166-r is published on the governmental official site. The total sum of the investment projects makes 21 billion 784 million 467 thousand UAH. In particular, in Nikolaev CSP it is provided to construct a universal loading complex with rough budget cost 83,3 million UAH. In Berdyansk CSP it is provided to construct a container terminal on the berth №10 for container handling for the sum 111 million 917 thousand sum UAH, complex building on transfer of cargoes Ro-Ro on the berth №11 and a terminal for bulk cargoes on the berth №11а for 64,2 million UAH, complex expansion for grain cargoes on the berth №9 for the sum 57 million 981 thousand UAH, construction of terminal for oil and vegetative products of production of Open Society "Azmol" on the berths №7 and №8 for 73 million 150 thousand UAH, restoration of infrastructure of the Genichesky port station for 29 million 722 thousand UAH, construction of complex on grain processing on the "Genichesk" port station for 60,06 million UAH. In Odesa CSP it is provided to develop the Quarantine mole for the sum 3 billion 852,4 million UAH, construction of a universal terminal near Practicheskaya harbour for the sum 1,4 billion UAH, construction of a universal terminal at Androsovsky mole, berth №35 for the sum 290,8 million UAH. In Izmail CSP it is planned to construct a specialised terminal for bulk mineral fertilizers on the berth №31 for 43,92 million UAH. In Skadovsky SCP construction of a teminal (berth №1а) for cargo handling on Ro-Ro ships and car ferries for 56,1 million UAH, reconstruction of the berth №3 of grain terminal for the sum 58,4 million UAH, construction of a first stage of the mooring №6 for containers and cars for the sum 114,5 million UAH. To Belgorod-Dnestrovsky SCP it is planned to construct a terminal for grain and general cargoes on the berths №9 and №10 for 326 million 985 thousand UAH. In Kerch SCP it is plovided to make an expansion of port capacities, development of Noviy mole for 440,1 million UAH, expansion of port capacities, development of Shirokiy mole for 300 million UAH. In Feodosia SCP it is planned to reconstruct the berths №1-3 (first stage) for the 90 million UAH. In Yalta SCP reconstruction passenger-and-freight port station Massandra for the yacht marine for the sum 2,25 billion UAH is provided. In Ilyichevsk SCP it is provided to reconstruct the berths №7-9 for general cargoes for the sum 456 million 297 thousand sum UAH, development of the container terminal with berths №1 and №2 for the sum 1 billion 305 million 630 thousand UAH, development of the multimodal terminal for container handling (the fifth terminal) for 440,55 million UAH, building of the new terminal for containers and processing of Ro-Ro ships at the unequipped port coast and adjoining territories for the sum 2 billion 803 million 500 thousand UAH, development and construction of a specialised terminal for bulk cargoes of open storage through the berth №10 with berth and warehouse reconstruction for the 304 million 380 thousand UAH, construction of a specialised terminal for bulk cargoes through a warehouse on the top plateau at back of the berth №11 and №12, constructed with a new two-sided mole on the linking point of the berths №10 and №11 for 640,8 million UAH, reconstruction of the berths №12, №14 and №15 and an adjoining warehouse for metal rolling and pig-iron for the 252 million 315 thousand UAH. In SCP "Yuzhniy" it is provided the next: reconstruction of an existing complex of local building materials (berth №38) with a capacity up to 1 million t per year for the sum 700 million sum UAH, a specialised export-import cargo terminal for bulk cargoes (coal, ore) with a capacity up to 4,4 million t per year (with possibility of attraction of investments) for 800 million UAH, a specialised cargo terminal for bulk food and grain cargoes (perspective berths of port №33 and №33а) with a capacity up to 3,3 million t per year for 800 million UAH. In Kherson SCP it is planned to construct a railway way from the station Tsyurupinsk to the creeks №1 and №2 on the left coast of Dnepr for the sum 1 billion 024,8 million UAH, construction of the container terminal in the creek №2 on the left coast of the river Dnepr with capacity 22 thousand TEU for the sum 126 million UAH, construction of terminal on timber processing in the creek №2 on the left coast of the river Dnepr with capacity 160 thousand t annually for 33,6 million UAH, construction of the mechanised complex on processing of chemical fertilizers with capacity 10 thousand t and reconstruction of the berth №7 for 45 million 948 thousand UAH, construction of grain terminal with capacity 25 thousand t in the territory of the berth №3 for 31 million 332 thousand UAH, construction of terminal on bioethanol processing in the creek №1 on the left coast of the river Dnepr in capacity of 30 thousand t for 77 million 280 thousand UAH, reconstruction of the berth №10 for 29,4 million UAH. In Eupatoria SCP it is planned to make a construction of terminal for car ferries and "roll-on" ships for the sum 69,4 million UAH, construction of a container terminal for the sum 1 billion 240,7 million UAH, construction of a terminal for general cargoes for 335,8 million UAH, reconstruction of the marina building under a hotel-office complex with yacht-club for 180 million sum UAH. In SCP "Oktyabrsk" construction of a universal berth №7 for 253,2 million UAH is provided. In SCP "Ust-Dunaysk" it is provided to construct a terminal and a warehouse for bulk cargoes, metal and so forth for the sum 130 million UAH. RBC-Ukraine

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