The EBRD is continuing to support the transport infrastructure in Ukraine with a $27 million loan facility to finance the development of a logistics service centre in the area of the Black Sea Port of Odessa.
EBRD funding will contribute to improvements in the efficiency of container handling operations and promote the development of the inland infrastructure in the Port of Odessa. The financing will be provided to Euroterminal LLC, a company set up specifically to implement the project.
Based on a “dry port” concept for on-shore processing of containers, this will be the first such logistics centre in Ukraine directly integrated with container terminal facilities in the port via a recently completed flyover. The centre will consist of a container truck parking lot, a customs terminal and a container storage facility. The project will also help to regenerate the city’s industrial zone and to remove heavy container truck traffic from the city streets.
Sue Barrett, the EBRD’s Director for Transport, said: “The Bank is happy to support this important project, which will be the first of its kind in Ukraine and represents much needed private sector involvement in port infrastructure development in the country. More private initiatives in this sector will bring much needed expertise, capital and efficiency essential for the modernisation of Ukrainian transport networks”.
Ludmila Varavva, Euroterminal’s Director, said:”Despite today’s volatile market conditions, our company has taken the initiative to develop this ambitious investment project to provide better quality and more efficient services to shippers and cargo owners and prepare to meet future increase in cargo handling in the Port of Odessa. This is a strong signal for global business, pointing to an attractive investment climate in Ukraine and the Odessa region. It became possible due to concerted efforts of the Odessa Port Authorities, City of Odessa, Euroterminal LLC and the EBRD. It is a great honour for Euroterminal to have such partners. The EBRD’s support is clear evidence of our drive, determination and transparency”.
With this project, the total commitments of the EBRD to support the development of the Ukrainian transport sector will exceed €700 million. The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 October 2009, it had committed €4.5 billion through 189 projects.