5 Nov 2024 16:36

Danube region development plan for 2024-2028 envisages ports' development

MOSCOW. Nov 5 (Interfax) - Ukraine is working on a Danube region development plan for 2024-2028, which will highlight the Danube ports and their cargo turnover.

"A Danube rescue plan. [...] Have taken part in a meeting organized by the USPA [the Ukrainian Sea Ports Authority] to discuss a draft plan of the Danube region's development in 2024-2028. Numerous, obviously, appropriate proposals have been put forward in the course of drafting the document, including a discounted tariff for rail transportation to Izmail, which is important for the Ukrainian Danube Shipping Company (UDP)," Ukrainian media quoted Ukrainian Danube Shipping Company General Director Dmitry Moskalenko as saying on a social network.

There is still a chance that every correct and useful initiative, idea and proposal remains on paper, unless the problem of cargo absence in the Danube logistics cluster is resolved, he said.

"In the global competition for export cargo, the Danube ports do not even rank second. If it is not possible to export via Odessa, business will most likely reorient itself to Gdansk or another European port. Any plan to save the Danube must begin with forming a concept for a competitive logistics chain. Railway, accumulation, transshipment, fleet - the plan must include a combination of all links," Moskalenko said.

In his words, the Danube is stopping, which means there is a need for a comprehensive plan based on market realities, instead of an illusion that "isolated" projects might change the general picture.

Moskalenko proposed setting the minimum amount of cargo the Danube cluster needs to preserve the substantial potential created by combined efforts of the state and businesses at the beginning of the crisis.

"For UDP, this means at least 150,000 tonnes per month. It is relatively insignificant amount in terms of overall Ukrainian exports, rerouting which to the Danube is quite realistic. That's the specific content the plan must have," Moskalenko said.

For comparison, cargo transportation through Danube ports hit a monthly record of 3.2 million tonnes in 2023.