24/7

Ports in disputed Crimea could lose cargo to their Kiev-loyal rivals

20.05.14

Lloyd’s List presented an article by David Osler on Monday 12 May 2014 where he recites words said by Arthur Nitsevych, Partner of Interlegal, as for diversification of cargo flows in Ukrainian ports after Crimea annexation.

“Yugoslavia precedent suggests peninsula may struggle to regain lost volumes, says lawyer. PORTS in towns that remain under the control of the government in Kiev are this year expected to win the largest share of the 14m tones of goods handled by ports in the disputed Crimea peninsula, according to local shipping sources.

Despite some likely drawbacks, such as constraints on railway capacity and possibly port congestion, no serious capacity problems are likely, observers say, and there is also plenty of scope for port expansion, should this become an issue in the future.

Odessa-based shipping lawyer Arthur Nitsevych, who chairs the country’s Nautical Institute’s branch, highlighted how, after the wars in Yugoslavia in 1990s, traffic lost by Danube ports did not return after hostilities ceased.

This precedent suggests that Ukrainian exporters will largely stop using Crimean ports for political reasons, he says.

“This means that there are all prerequisites for the development, for example, of grain handling in Odessa, Nikolaev and Kherson region.”

Julia Matalinets of Eurogal Surveys, the local Lloyd’s agent, added in an email to Lloyd’s List: “According to available information the ports of Odessa region are ready to operate with cargo instead of Sevastopol and other Crimean ports.”

Odessa’s official capacity is 730,000 tonnes per annum, although this could stretch to 900,000 in case of necessity.

Work on new piers is around 50% complete and an additional grain terminal is 90% finished, Ms Matalinets said.”

 

Published on Lloyd's list

Author: Arthur Nitsevych