Cargo traffic through Danube ports planned to increase to 2.5 mln tons via pilot project

Ukraine plans to launch a pilot project for the development of its Danube ports, aimed at increasing guaranteed cargo traffic to 2.5 million tons annually and turning this route into a stable export corridor.

The Ministry for Communities and Territories Development, in particular, proposes to:

• consolidate the management of Danube ports into a single Danube branch of the Ukrainian Sea Ports Authority;
• retain part of port dues within the region to reinvest in port and fleet development;
• support rail cargo transportation to the ports of Izmail and Reni;
• introduce tariff incentives for businesses.

“We are talking about creating a level and competitive environment for businesses, ensuring stable operations of 56 stevedoring companies, and increasing guaranteed cargo traffic to 2.5 million tons per year. In addition, the proposed measures will help preserve around 2,000 jobs in the region’s maritime sector and over 3,500 jobs at Ukrainian Railways,” said Deputy Minister for Communities and Territories Development of Ukraine Andrii Kashuba.

The ministry is also considering the creation of industrial parks on available land in the ports of Izmail and Reni, as well as on the basis of the Ukrainian Danube Shipping Company. This could attract investors, boost cargo volumes, and create new jobs.

The Coordination Council supported the launch of the pilot project and proposed that the government approve it for a two-year period.

The meeting also addressed cargo transportation to the ports of Big Odesa. Due to shelling and infrastructure damage, Ukrainian Railways is sometimes forced to route trains along longer but safer routes, which increases delivery times and costs.

To make tariffs more predictable for businesses, the ministry proposes calculating an average tariff distance between shorter and longer routes. This would keep transportation costs roughly the same regardless of the route taken by cargo.