Ukraine earned extra $1.5 billion from Danube ports after liberation of Snake Island

Deputy Prime Minister for Restoration Oleksandr Kubrakov has said that Ukraine earned an additional $1.5 billion after the liberation of the Snake Island in June 2022 and the opening of the Bystre Canal for shipping in the Danube Delta.

"After the liberation of the Snake Island, the opening of the Bystre mouth made it possible to triple the throughput capacity of the ports of the Danube cluster to up to nine ships per day. The effect for the state was approximately 10 million additional tons of cargo per year. Also, after the opening of the Bystre mouth, the freight rate decreased by 30%," wrote Kubrakov in a column for NV Business.

Also, in March 2023, Ukraine brought the Ukrainian section of the Danube River into line with historical operational characteristics and carried out dredging near the port berths, which made it possible to receive even more ships and cargo.

"The result was not long in coming — by bringing the maximum draft to 6.5 meters from 3.9 meters, the Danube ports reached a record number of 12 vessels and 90,000 tons per day. This additionally adds tens of millions of dollars to the state's economy every month," Kubrakov stated.

He added that the ports managed to develop their export capacity thanks to the launch of additional capacities and the processing of new cargo nomenclature. Thus, the operation of more than 20 new sea terminals began, in particular, in the port of Reni, a container terminal was opened. Until now, the Danube ports did not handle containers at all. In addition, the number of pilots increased from 16 to 62.

The Deputy Prime Minister admits that these steps of the state and state-owned enterprises are not enough to fully realize the potential of the Danube ports. The need for investments is at least $120 million, and it will not be possible to attract them solely by the state.

On April 20, a private investor announced that he plans to build new roads to the Ust-Dunaisk port.

On May 2, the state company Ukrainian Danube Shipping announced that it intends to engage in sea transportation . For this, three sea vessels are returned from the lease.

On May 5, the Ministry of Restoration appointed a new permanent head of the Ukrainian Sea Ports Authority.