Ukrainian Danube Shipping Company Failed to Sell its Fleet

The Ukrainian Danube Shipping Company (UDP) failed to sell six vessels of the maritime fleet put up for sale as a single lot with a starting price of 440 million 680 thousand 132 hryvnias.

This is reported on the public procurement platform.

No one wanted to buy the repaired Vilkovo and Izmail, which are ready for operation, as well as Tatarbunary, Viana do Castelo, Kiliya and Reni, which had been idle for a long time.

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

Despite considering various options, such as time-chartering the 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 fleet will take place at an open tender, which will ensure fair privatization and help the state reduce losses.

Earlier, a court in Vienna rejected the Russian Federation's claim to the buildings of the Ukrainian Danube Shipping Company in the center of the Austrian capital.

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 was handled in the same period in 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.

Кирило Бойко