Issue 3 Roads Airlines Airports Tenders Railways Crimea Ports
Total Page：16
File Type：pdf, Size：1020Kb
Issue 3 Roads Airlines Airports Tenders Railways Crimea Ports Borders 1 Ukraine’s Infrastructure Paves Way to Europe Managing Editor Last year, when Ukraine’s Progress has been made, but the government secured the visa-free path ahead is still challenging and travel agreement and free trade expensive. pact with the European Union, it was rightly seen as a significant An estimated 90% of the country’s political victory. But it was also a railroad and rolling stock needs historic moment for the Ukrainian refurbishing or replacing; 80% of people. Ukrainian post offices don’t have computers and about $4.7 billion In the summer, as deals were per year is needed to repair and finalised, people unfurled banners upgrade dilapidated roads. and flags and once again took to Kyiv’s iconic Maidan Nezalezhnosti, An Infrastructure Revolution or Independence Square, site of the The challenge ahead – comparable 2014 Euromaidan Revolution. to how Eastern Europe began integrating to Europe and its But this time it was to celebrate. infrastructure in the 1990’s – can And instead of coming under sniper seem daunting. fire and attacks from Russian- backed thugs, residents of the Leading Ukraine into this new capital, public officials and foreign “Infrastructure Revolution” and friends came together to revel in period of intense modernization, is this historic step forward. 39-year-old Volodymyr Omelyan, Minister for Infrastructure. Pivot to Europe After years of constantly changing A former diplomat, Omelyan governments never firmly defining the country’s geopolitical position, is a fluent English speaker and Ukraine had now strongly pivoted persuasive advocate for improving towards the EU, and started the Ukraine through foreign investment. process of joining the European His ministerial portfolio is one family of peoples. of the broadest; he oversees an array of areas that ranges from But now, for Ukrainians to properly telecommunications, roads and benefit from the new free trade ports, to the state railroad and the pact and visa-free regime, the national post office. infrastructure must be in place to facilitate this. That means cheap To modernize his country’s flights from national and regional infrastructure, he courts a variety airports, as well as roads and rail of foreign friends who are all keen networks that seamlessly connect to invest in Ukraine, a vital cargo with Europe. corridor and important frontier for 2 3 international business. In Miami Over 2,100 kilometres of new road And now, for the new Ukraine, and New York, companies commit was laid in 2017, and 4,000 more revitalized transportation to investing in energy infrastructure will be completed in 2018. Through infrastructure will begin to while the Chinese and Europeans 2022, the state will spend at least strengthen her westward pivot, compete in tenders for improving $11 billion on more road repairs and paving the way for the country’s ports and building roads. upgrades while foreign companies future, allowing her peoples to take will finance new toll roads and their rightful place in Europe. Here, infrastructure is very much concrete highways. open for business: foreign capital Ports, roads and and expertise is seen as vital in the Regional airports are becoming coming crusade to bring Ukraine’s busier as low-cost airlines grow railways have always infrastructure up to standard. The in confidence and move into the state simply can’t foot all the bills market here. More Ukrainians than been a backbone for alone. ever before are taking to the skies and this is set to increase even successful nation Steady Progress more. For prospective investors, there are states and great plenty of reasons to start feeling Ports, roads and railways have confident. always been a backbone for empires successful nation states and great The country’s railway – carrying empires. In the 20th century United 440 million passengers and 445 States, the construction of new million tons of cargo per year – has roads was credited with helping to been privatized and is profitable. bring the country out of its Great American General Electric will Depression. upgrade their locomotives and rolling stock. Opportunity Reports 4 Contents The Team 5 Managing Editor Page 6 Investing in asphalt: A road network for 2020 Jack Laurenson Natalia Datskevych Page 10 As air connections improve, Ukraine takes off Journalists Jack Laurenson & Antonina Tsymbaliuk Jack Laurenson Page 15 With Prozorro, everyone sees all Antonina Tsymbaliuk Natalia Datskevych & Vitalli Dubenskyi Natalia Datskevych Vitalli Dubenskyi Page 19 On the right track: Linking Ukraine’s railways to the EU Jack Laurenson Page 22 With Europe’s longest bridge, Russia tightens grip on Crimea Art Direction Jack Laurenson Martin Nunn Page 26 Upgraded Seaports funnel big business into Ukraine Design & layout Natalia Datskevych Whites Communication LLC Page 28 Upgrades needed for Ukraine’s western frontier Jack Laurenson Photo research Viktoria Nesterenko Administration Elena Nunn Production Alexander Bugay Advertising sales UBJ Publications LLC This report is published in cooperation with Ukraine’s investment promotion office, UkraineInvest. Copyright © 2018 Frontier Markets Media Limited. All rights reserved. To republish any material please refer to / link to the Ukraine Business Journal (www.theubj.com). For advertising in future Opportunity Reports or any UBJ product please contact: [email protected] Disclaimer Nothing contained within this publication should be regarded as any form of recommendation to invest or divest. This publication may contain personal views, which are not the views of Ukraine Business Journal, UkraineInvest or its subsidiaries or associates unless specifically stated. The publisher does not carry any responsibility for views expressed in the publication. Ukraine Business Journal Opportunity Reports 6 7 Investing in Asphalt: A Road Above: All over Ukraine, billions are being invested into repairing the Network for 2020 Ukraine country’s dillapidated roads and highways. by Natalia Datskevych KYIV – Today, in Kyiv’s corridors of km however, and officials have a “More than $150 million will be power, legislators and planners are strategy for fixing much more in the allocated to repairing the highway mapping the highways and roads years to come. from [western] Lviv via Ternopil to that will connect Ukraine well [central] Uman,” said Volodymyr beyond 2020. Developing Ukrainian Roads Omelyan, Minister of Infrastructure, Under the government’s road in a recent interview with UBJ. It’s impossible to imagine a development program for 2018- functioning country without good 2022, about $11 billion will be spent “This highway connects the Baltic highways and robust traffic laws on repair and construction. States and the Black Sea, Gdansk that meet international standards. [Poland] and Odesa.” “Over the next 5 years, the length As for businesses, the quality of of repaired roads will be more than The bigger picture, is a planned roads directly affect the efficiency 10,000 km,” said Slavomir Novak, $1.9 billion highway project that of their activities and their ability to head of Ukrautodor. stretches across much of Ukraine. get goods to market. Most important for businesses, is According to Omelyan, the final But despite increasing car numbers the issue of highways that connect “Go Highway” route will be Lviv- and more international cargo Ukraine’s administrative regions Ternopil-Khmelnitsky-Vinnitsa- transiting the country, Ukraine and cities. Careful attention will be Uman-Odesa-Mykolaiv-Kherson. has been falling short of providing paid to the south of Ukraine, where Planners say that the duration of drivers with the quality of roads they need. Over the next 5 years, the length of With a total network of connected repaired roads will be more than roads and highways that measures 170,000 km, of which 94% have 10,000 km overdue repairs, improving the state highways is a challenge for the next decade. international cargo disembarks from average cargo transport will be advisory, more and more funds are strategy, they complain that the aren’t developing properly,” said ships entering port, and the west, reduced by 35%. being allocated to improving road road situation hasn’t improved Miagkov. “Such roads are extremely But progress has been made where thousands of trucks cross safety. Cash will be used to install much in the last 10 years. important for business.” in recent years. According to into Europe. $40 million will also be invested modern signage and reflective Ukravtodor, the state highways this year into repairing connections marking on roads and other Andrii Miagkov, a director at Gefco – a leading car transportation agency of Ukraine, the path to In 2018, ground breaks on the between certain western cities, important safety measures. the Gefco Company, has serious company with growing business interests in Ukraine – say that roads improvement is becoming clearer. build of a new concrete highway while spendings of $37 million will concerns about the quality of many connecting south-eastern Mykolaiv do the same in the eastern Kharkiv here are so bad they have to to Business Needs Better Roads roads in the country and says they impose a 100% higher depreciation In 2014 – a year famous for the with Kropivnitsky. Around Zhytomyr, region. It’s no secret that businesses here aren’t getting enough attention. rate, per kilometer, on vehicles. outbreak of revolution and war also close to the Black Sea, a put improving Ukraine’s roads Chinese contractor will begin Meanwhile, in a nation where here – only 102 km of highway was somewhere at the top of their “Development seems to be aimed One strategy to improve the construction of a vital new bypass not wearing seatbelts is standard repaired. In the last 2 years, this wish list. While many welcome only at transit roads, such as the country’s extensive road network, figure has climbed to about 3100 road. and speed limits often seem to be the government’s new transport Go Highway, but smaller roads that’s under careful consideration, Opportunity Reports Right: Ukraine has 170,000 kilometers 8 of interconnected roads and highways 9 but most are in need of repairs and upgrades.