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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

NINTH WAVE FOR UKRAINIAN FLEET

13 November, 2012 - 00:00

Even before the privatization process was legalized in Ukraine, a number of merchant marine officials felt the change in the wind and decided to get rich quick by stealing state property. They also found partners abroad and formed a group beyond all control and with unlimited opportunities. As a result, foreigners managed to take over one of their most powerful competitors, the Ukrainian fleet.

However, Ukraine is still undoubtedly a major seafaring state. There are seven Ukrainian sea companies in the country, four of which belong to the state. In addition, there are over 100 private seagoing shipping companies. Unfortunately, many Ukrainian ships are impounded in foreign ports. Some even say that Ukraine is in the first place in this category. But I am certain they are wrong: bankruptcy is common worldwide.

In 1990-1996 the volume of cargo shipping decreased 71% and passengers 55%. Cargo turnover in our ports was more than halved in the same period. Shipbuilding capacity fell 43%. The Black Sea Shipping Company employs 15,000 people, while only 2,500 are actually needed. The company’s foreign debt is $200 million and domestic debt Hr 50 million. 25 ships are impounded in various foreign ports.

A special program was adopted in 1995 to bring the sector out of its crisis. Unfortunately the program was not launched. Our institutes worked out another program for stability and development. The Ministry’s session will discuss it in the immediate future. However, we will not be able to do anything without state support: we need to build a new fleet and state guaranties for loans are essential to do so. If we do not start building ships, in ten years Ukraine will be left out without a fleet. The average age of our sea ships is 20 years and river ships 18 years. Moreover, Ukraine is badly in need of ice-breakers. We presently have only one ship that can last two or three more years. Although Ukraine is not on the North Pole, there are some routes where ice-breakers are needed.

Without waiting for state aid sailors are trying to rescue the sector on their own. Last year the sector yielded almost Hr 140 million in profit despite all problems. I would like to believe that ships under the Ukrainian flag will be treated with respect in both domestic and foreign ports.

Photo:

Ukrainian captive vessels, even those like the Taras Shevchenko (in photo), as a rule get state assistance

 

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