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Income from port dues should be allocated to the development of port infrastructure

26/ 04/ 2017
  The European Business Association, the Ministry of Infrastructure of Ukraine and the AMPU are negotiating with the Ministry of Finance of Ukraine to reduce the rate of AMPU profit deductions to the state budget. Analyzing the world practice, including the European one, the experts of the Logistics Committee of the Association concluded that the revenues from port charges are targeted and, in our opinion, should be fully used for the operation and reproduction of port infrastructure facilities. However, according to the Resolution of the Cabinet of Ministers of Ukraine No. 138 dated February 23, 2011, part of the net profit (income) is paid by state enterprises to the state budget, with the financial resources of the enterprise at the rate of 75%. The lack of funds does not allow to keep berths in a normal technical condition (we mean the repair of berths, the period of regulatory operation has expired or coming to an end), maintain the passport characteristics of hydraulic structures, carry out the construction of anchorages, etc. In our opinion, this situation does not contribute development of port infrastructure and makes it impossible to implement projects for operational and capital dredging (both public and private companies ). Negotiations have already begun with the Ministry of Finance of Ukraine. Our main task is to provide the Ministry of Finance with the following information: How to balance the reduction in the deduction of dividends in the budget? What volume of cargo is planned to be involved in the implementation of the announced projects? What are the potential losses in the state. the budget can occur if the dividends are not lowered (for example, if all work on maintaining the passport characteristics of the water area and hydraulic structures is not carried out in a timely manner)? Business counts on a constructive dialogue with the Ministry of Finance, a balanced position of the department and confident steps towards the development of port infrastructure. Source: Center for Transport Strategies

The European Business Association, the Ministry of Infrastructure of Ukraine and the AMPU are negotiating with the Ministry of Finance of Ukraine to reduce the rate of AMPU profit deductions to the state budget.

Analyzing the world practice, including the European one, the experts of the Logistics Committee of the Association concluded that the revenues from port charges are targeted and, in our opinion, should be fully used for the operation and reproduction of port infrastructure facilities.

However, according to the Resolution of the Cabinet of Ministers of Ukraine No. 138 dated February 23, 2011, part of the net profit (income) is paid by state enterprises to the state budget, with the financial resources of the enterprise at the rate of 75%.

The lack of funds does not allow to keep berths in a normal technical condition (we mean the repair of berths, the period of regulatory operation has expired or coming to an end), maintain the passport characteristics of hydraulic structures, carry out the construction of anchorages, etc. In our opinion, this situation does not contribute development of port infrastructure and makes it impossible to implement projects for operational and capital dredging (both public and private companies ).

Negotiations have already begun with the Ministry of Finance of Ukraine. Our main task is to provide the Ministry of Finance with the following information:

How to balance the reduction in the deduction of dividends in the budget?
What volume of cargo is planned to be involved in the implementation of the announced projects?
What are the potential losses in the state. the budget can occur if the dividends are not lowered (for example, if all work on maintaining the passport characteristics of the water area and hydraulic structures is not carried out in a timely manner)?

Business counts on a constructive dialogue with the Ministry of Finance, a balanced position of the department and confident steps towards the development of port infrastructure.

Source: Center for Transport Strategies

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