Danube Shipping Company puts its fleet up for auction

The Ukrainian Danube Shipping Company (UDP) has started selling its maritime fleet. All six vessels are put up for sale as a single lot.

This is stated on the public procurement platform.

Six vessels are up for sale as a single lot, including the repaired Vilkovo and Izmail, which are ready for operation, as well as Tatarbunary, Viana do Castelo, Kiliya, and Reni, which have been idle for a long time. The starting price is UAH 440 million 680 thousand 132.

Bids are due by December 12, and the auction is scheduled for the next day.

The USPA explained that they began restoring the maritime fleet in 2022, when the blockade of Odesa ports made the Danube ports a key transport corridor for agricultural exports. However, after the seaports reopened, freight rates fell, and the prospects for using the fleet became economically unprofitable.

Despite considering various options, such as time-chartering vessels, the company recognized that this business remained unprofitable. The maintenance of old vessels also requires significant financial costs, including repairs and renewal of documents.

The administration emphasized that the sale of the maritime fleet will take place at an open tender, which will ensure fair privatization and help the state reduce losses.

In 2023, the Danube ports in Odesa region broke last year's records. Then the seaports of the Danube region handled 27.6 million tons of cargo in 10 months of 2023, which is 45.6% more than in the same period of 2022.

In July 2023, the Ukrainian Danube Shipping Company loaded a vessel with a deadweight of more than 45 thousand tons for the first time - the transshipment of products on board the Ali M is currently underway.

Ірина Глухова