The liquidation of the port of Nikolaev is proposed; the reasons are mentioned



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After the audit, the state audit proposes to liquidate the port of Nikolaev.

Photo: port of Nikolaev (wikimedia.org)

According to the results of the audit, the State Audit Service of Ukraine recommended to the Ministry of Infrastructure to liquidate the commercial sea port of Nikolaev.

This is indicated in a message on the service’s website.

It is reported that the company conducted an audit of activities from March 1, 2018 to February 29, 2020. According to the results of the inspection, despite the presence of profits, in fact, the port of Nikolaev did not recharge a single ton of cargo.

The fact is that the port leased its production facilities to private operators until the end of 2029-2030 without the right to unilaterally terminate the contracts. At the same time, the port of Nikolaev itself does not check the status of leased state property.

He also reported that the port staff is made up of administrative, managerial and service personnel with salaries three times higher than the industry average. The rent forms passive rental income, but the debts with the creditors have multiplied by 3.5 in two years and have reached 44.13 million hryvnia. In this context, the depreciation of the fixed assets of the company is close to 100%.

Furthermore, the audit revealed ineffective costs and lost profit totaling almost 127 million UAH.

Therefore, the Ministry of Infrastructure is recommended to raise with the Cabinet of Ministers the issue of removing the port of Nikolaev from the list of strategic companies and also instruct the USPA to exclude it from the registry of sea ports.

Note that in February the Antimonopoly Committee approved the transfer of the port in Nikolaev to the concession.

We will remember, in 2020, Ukraine began to transfer its ports to concession. The first was transferred to the commercial port of Kherson.

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