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Data Collection Survey on Logistics and Transport System in Southern Ukraine Final Report

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Data Collection Survey on Logistics and Transport System in Southern Ukraine Final Report Data Collection Survey on Logistics and Transport System in Southern Ukraine Final Report June 2017 JAPAN INTERNATIONAL COOPERATION AGENCY PADECO Co., Ltd. Pacific Consultants Co., Ltd. 7R JR 17-014 Data Collection Survey on Logistics and Transport System in Southern Ukraine Final Report Contents List of Figures..........................................................................................................................iv List of Tables ........................................................................................................................ viii Abbreviations ........................................................................................................................... x Executive Summary ............................................................................................................ E-1 1. Introduction................................................................................................................... 1-1 1.1 Study Background ............................................................................................... 1-1 1.2 Objectives............................................................................................................ 1-1 1.3 Study Area ........................................................................................................... 1-1 1.4 Study Tasks ......................................................................................................... 1-2 1.5 Study Schedule .................................................................................................... 1-2 2. National Transport Policies and Plans .......................................................................... 2-1 2.1 National Transport Policies and Plans .................................................................. 2-1 2.1.1 National Development Plan .......................................................................... 2-1 2.1.2 National Transport Strategy and Its Priorities................................................ 2-2 2.2 Donor Assistance to the Transport Sector in Ukraine ............................................ 2-3 2.2.1 USAID......................................................................................................... 2-3 2.2.2 European Investment Bank (EIB) ................................................................. 2-4 2.2.3 The World Bank Group ................................................................................ 2-5 2.2.4 European Bank of Reconstruction and Development (EBRD) ....................... 2-6 3. Analysis of Road Subsector ........................................................................................... 3-1 3.1 Overview of National Road Network ................................................................... 3-1 3.2 Roads in Ukraine ................................................................................................. 3-2 3.2.1 Network ....................................................................................................... 3-2 3.2.2 Issues in Quality of Maintenance .................................................................. 3-3 3.2.3 Institutional Framework of Road Administration .......................................... 3-5 3.2.4 Organizational Structure of Ukravtodor ........................................................ 3-7 3.2.5 Capacity Improvement of Ukravtodor .......................................................... 3-9 3.2.6 Relevant Laws and Regulations on Roads ................................................... 3-11 3.2.7 Engineering Standards.................................................................................3-17 3.2.8 Strategy for the Road Sector ........................................................................3-20 3.2.9 Donor Assistance for Road Sector ...............................................................3-21 3.2.10 Ongoing and Planned Projects .....................................................................3-24 3.3 Highways in the Southern Region .......................................................................3-28 3.3.1 Road Network .............................................................................................3-28 3.3.2 Major Issues ................................................................................................3-30 3.4 Mykolaiv Bridge Construction Project ................................................................3-33 3.4.1 Status of the Project ....................................................................................3-33 3.4.2 Specifications of the Mykolaiv Bridge as Planned in the Preparatory Survey in 2011 ............................................................................................3-34 3.4.3 O&M Consideration of the Project ..............................................................3-36 3.4.4 Status of the Existing Bridges in the City.....................................................3-36 i Data Collection Survey on Logistics and Transport System in Southern Ukraine Final Report 3.4.5 Price Changes for Bridge Construction Cost Estimates ................................3-38 3.4.6 Capabilities of Local Contractors in Bridge Construction ............................3-42 4. Analysis of Seaport Subsector ....................................................................................... 4-1 4.1 Introduction ......................................................................................................... 4-1 4.2 Overview of the Port Sector in Ukraine ................................................................ 4-1 4.2.1 General Introduction of Ukrainian Port Sector .............................................. 4-1 4.2.2 Categorization of Ukrainian Seaports ........................................................... 4-2 4.2.3 Changed Port Landscape .............................................................................. 4-2 4.3 Institutional Framework ....................................................................................... 4-3 4.3.1 Relevant Laws and Regulations on Seaports ................................................. 4-4 4.3.2 Findings on the Ukrainian Port Reform ........................................................ 4-5 4.3.3 Strategy for the Port Sector .......................................................................... 4-6 4.4 Handling Cargo Volume and Cargo Demand Forecast of Major Cargos at Major Ports .......................................................................................................... 4-9 4.4.1 Methodology ................................................................................................ 4-9 4.4.2 Demand Forecast Results ............................................................................4-10 4.4.3 Conclusions – Main Forecast Results ..........................................................4-26 4.5 Capacity in Major Ports: Actual Capacity and Capacity Needs ............................4-27 4.5.1 Current Capacity .........................................................................................4-27 4.5.2 Hinterland Connection ................................................................................4-38 4.5.3 Conclusion – Current Capacity ....................................................................4-39 4.5.4 Capacity Needs ...........................................................................................4-40 4.5.5 Conclusion ..................................................................................................4-42 4.6 Current Status and Challenges of the Sea Port Authority .....................................4-43 4.6.1 The Ukrainian Sea Port Authority ................................................................4-43 4.6.2 Current Status of Port IT Systems, Customs and Other Regulatory Controls ......................................................................................................4-46 4.7 Donor Assistance for Seaport Sector ...................................................................4-48 4.7.1 The World Bank Group ...............................................................................4-48 4.7.2 European Bank of Reconstruction and Development (EBRD) ......................4-49 4.7.3 European Investment Bank (EIB) ................................................................4-50 4.7.4 The Netherlands ..........................................................................................4-51 5. Road Traffic Characteristics and Forecast ................................................................... 5-1 5.1 Traffic Issues in the Southern Region and Its Surroundings .................................. 5-1 5.1.1 Russian Transit Decrease due to 2014 Event vs Export Products Growth ...... 5-1 5.1.2 Grain Product Policy and Logistic Chain Development by IFIs..................... 5-3 5.1.3 Iron Ore and Steel Products Export and Its Logistic Chain ............................ 5-9 5.1.4 Industrial Development Potential in Mykolaiv and M-14 .............................. 5-9 5.1.5 Bottlenecks in Regional Transport and Urban Transport ..............................5-10 5.1.6 Summary ....................................................................................................5-14 5.2 Review of Traffic Forecast in The Preparatory Survey in 2011 ............................5-16 5.2.1 Comparison of Traffic Counting ..................................................................5-16 5.2.2 Review of the Forecast Model in
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