As it was informed, the Cabinet of Ministers of Ukraine has raised payment by 17,1%  for vessel pass through the Kyiv, Kaniv, Kremenchuk and Dniprodzerzhynsk locks. This decision is explained by necessity to cover budged underfunding to maintain navigation locks. At the same time the government cancelled preferential tariff group used by domestic shipowners.  For example, a foreign-going vessel of up to 2 thousand cubic meters under foreign flag paid UAH 688 in mode; under Ukraine’s flag – UAH 424.
The topic of water transport competitiveness is not discussed in Europe as well as in the world, as water transport is recognized as the most efficient and environmentally friendly type of transport. Declarative nature of problem solving (or rather non-solution) to revive rivers as transport arteries prevails in Ukraine. For the last period domestic agrarians have increased grain production by 30 million tons; it is planned to considerably increase field productivity and, consequently, volumes of grain export. Opportunities to transport products are limited. Railway is considered to be suffering from railway vehicles deficit, and they are depreciated; motor transport is limited in weight. But it is not the key part of the problem. Grain railcars are enough for the required export. The main negative factor is inefficient use of the available railway vehicles. Available transshipment capacities are not able to transship more that 1.5 thousand railcars per day, and exporters can order 2.5 thousand. Thus, “spare” railway vehicles are accumulated at ports and at neighbouring railway stations. And there is consequence: railcar turnover reaches 8-10 days; railway vehicles are busy only 10% of time, and the rest is idle time.
NIBULON has found a way to deal with difficult situation having implemented the so-called “route shipments”. New accelerated arrangement of railway shipments by exit routes from the company’s elevators proposed by NIBULON’s General Director Oleksiy Vadaturskyy and supported by “Ukrzaliznytsya” management in January 2012 has already given convincing results. The company has proved that round-the-clock shipment work according to the approved schedule is possible, railcars turnover has reduced from average 8-10 days to 3 days. Thus, the problem does not consist in railcar deficit but in the efficiency of cargo technologies and productivity of carriers. This must be solved within Ukraine, and talks about railcar deficit will be stopped.
As to water transport, the main artery of the country, the DniproRiver, has taken only 1 % of the total cargo transportation amount; in Europe this figure comprises 15%. The reason for disproportion consists not only in catastrophic condition of Ukraine’s cargo fleet, sharp deficit of floating facilities, necessity to repair hydrotechnical facilities. On separate limiting parts of the Dnipro Cascade, in the area of the Dnipro and the Dniprodzerzhynsk Reservoirs, granite shallows prevent vessels from passing. This considerably influences cargo flow volumes.
Two years ago the Ministry of Infrastructure of Ukraine wanted to increase payment for using hydrotechnical facilities (tariff was increased in spring 2009). Then, frankly speaking, they proposed to increase rate by 22,4%. According to them, SE “Ukrvodshlaykh” did not have enough money to repair locks of the Dnipro Cascade. According to the departmental calculations, the level of financing comprised 35% of the amount of required expenses, 75% of which was ensured by the state budget and 25% by payment for locking. These conclusions are made without any serious economic grounding; though, they can impress somebody. An approach is too simple: fewer hauls but more expensive (for shipowners), and increased profit is guaranteed. But the real navigation revival on the DniproRiver has nothing to do with it, as increased revenues to the state institutions of the Ministry of Infrastructure have negative influence on carriers; their economic stimulus and possibilities to expand transportation volumes decrease.
Thus, according to officials of the Ministry of Infrastructure, problem can be solved within tariff policy. The ministry has kept this logic until recently, when governmental “lock” was broken and there appeared the resolution of the Cabinet of Ministers. The question is what level of payment for locking is required in the current unstable financial situation to achieve necessary sense.
Are there any ways to solve the problem of “sanitation” of locking sector”? Isn’t this issue (in general, the issue of inner waterways development) should be solved by increasing tariffs that can be called “way to eternity”? NIBULON’s program to revive the DniproRiver and other rivers of Ukraine as transport waterways is an alternative. Its implementation will allow to completely renew river navigation, due to the increase in cargo transportation volumes. In spite of NIBULON’s project efficiency, the company cannot find practical response on its initiative that has been implemented at the level of design and search works.
The governmental decision to raise payment for locking, prospects for the program implementation to revive Ukraine’s rivers are commented by NIBULON’s Deputy General Director of Construction, Fleet Operation and Navigation Safety Andriy Volik and Oleksiy Serbenyuk, a leading hydraulic engineer of the service of navigation safety and hydrotechnical facilities of the company.
Andriy Volik,                         
–      First of all, I am impressed with a little “facilitated” approach to the assessment of additional financial load on shipowners. So to say, these are not significant expenses in the dues structure. Each haul has double payment increase, from 77 to 93,5%! Moreover, benefits for flag that existed earlier have been cancelled. There is also an explanation here: we must go to Europe. But we pay taxes for using water space as opposed to foreign vessels. As opposed to them, we have to pay partial due, but the rescue radio buoy works only during forced starting, testing or emergency. It is strange, but our expenses are higher in comparison with foreign flag vessels.
Double (even triple and quadric) raising of payment for locking does not solve the problem of hydrotechnical facilities repair. For the last two decades the state has been doing nothing to keep them in the appropriate condition. At present innovative approaches are absent. Instead of it, there is being developed a concept about inland waterways another “spice” of which can be river dues of Euro 4.5 thousand per one haul from “Pereyaslavs’ka” branch (Kyiv region) to Mykolayiv city. Within NIBULON’s program to increase export potential, the practice of additional extrusion of money will lead to excessive expenses of NIBULON. Constraining fiscal mechanisms are used instead of economic stimulation of a producer and exporter that can contribute to the increase in cargo transportation volumes.
Thus, the resolution of the Cabinet of Ministers does not decide anything. Revival of the DniproRiver as transport artery (and for the last years cargo transportation by river fleet has decreased in 18 times, and passenger transportation in 19 times), including maintenance of hydrotechnical facilities, is possible only by implementing the complex program. Such an investment program was developed and is performed by NIBULON. It covers the whole range of tasks to revive the river navigation system: construction of cargo fleet (in prospect – passenger one), creation of infrastructure to store and transship grain and to dredge on limiting parts of inland waterway.
The first and the second stages can be characterized by two words: results and prospect. Within cargo fleet construction there have been built 24 non-self-propelled vessels of 4.5 thousand tons each and 6 tugs of POSS-115 project (two tugs were built at the shipbuilding and repair yard “NIBULON”). The program to create own cargo fleet includes construction of 35 self-propelled vessels of “river-sea” type with the deadweight of up to 7 thousand tons, two tugs of POSS-115 project, a floating crane of POSS-120 project with the productivity of 1200 tons per hour, 12 shallow-draught tugs…
As to the second stage, eight transshipment terminals in Kyiv, Poltava, Cherkasy, Mykolayiv, Zaporizhzhya, Kherson regions have been operating along the rivers. Construction of such facilities has been planned in other regions of Ukraine. And modern self-propelled floating crane St. Mykolai constructed by NIBULON’s order has successfully been operating in the outer roads of Sea Port Mykolayiv for more than a year.
Unfortunately, if one link is weakened in a chain, the whole chain is not able to work properly. Concerning the third stage of the DniproRiver revival, definition “result and prospect” is not working here. For several years NIBULON has been trying to receive a permit to perform dredging on limiting parts, granite shallows in the Dnipro and the Dniprodzerzhynsk Reservoirs (the latter is extremely dangerous for navigation: the official guaranteed depth is 3.65 m, and in tail water of the hydroelectric power plant the depth is from 2.7 m to 3 m depending on water level). Our position and proposition are clear: NIBULON performs dredging (within two months, the total cost is USD 2.5 million) at its own expense, and the country compensates money. In the current budget situation direct compensation is impossible, but there is an efficient mechanism: to provide the company with port dues discount. It is like an interest-free crediting given to the country by NIBULON. According to our calculations, the company will return money within 3-4 years. The depths will be brought to the ones officially announced; vessel draught will be increased by half meter – up to 3.2 m contributing to navigation safety and cargo flow increase. Due to draught increase, the annual amount of grain transportation on the DniproRiver can be increased up to 3 million tons by NIBULON. Consequently, transportation profitability will be increased; highways will be released. Cargo transportation on waterways will allow to reduce demand for 400 grain railcars or 500 truck trains.
NIBULON was ready to perform these works three years ago. By order of NIBULON, “Institute “Ukrrichtransproject” Ltd. has developed a design of dredging on limiting parts of the DniproRiver: measurements have been made, the total amount of works was determined (it is necessary to remove 19.3 thousand cubic meters of rocks), places for rock storage were determined. According to the specialists, two months are required to perform all works.
The arguments are more than convincing. But the Ministry of Infrastructure decided to change nothing to solve this problem. Instead of it, there appeared arguments: raising of payment will not influence cargo flows on the main water artery of the country; reasons for recessions are usually searched in economic crisis. And attempts to support “Ukrvodshlyakh” in such a way will hardly have efficient prospect. Our opponents are based on things they have now. But it is not a secret that not only Ukrainian carriers are interested in the development of the Dnipro transport potential. For example, under Belarus flag Turkish tugs transport barges with wood. It is a big economic stimulus and impact to certain actions. According to our calculations, dredging on limiting parts will enable to increase draught by 40 cm – up to 320 cm, provided that water level is on the mark of normally pond level; this must be done. Besides, navigation pass width will be increased, thus, positively influencing navigation safety. As today the problem of safety on this part is really existed. The vessels sail with the draught of 2.70 m; thus, it is necessary to catch a wave and to wait for good weather and daylight time. It should be said about transportation net cost, underloading of river transport facilities.
I would rather say it is a topic of economic patriotism. In due time “Ukrrichflot” “straggled away” the Dnipro problem; now its vessels (new) operate abroad; this is work for port structures. In fact, “Ukrvodshlyakh” is left face-to-face with its financial difficulties; it can hardly find money too pay wages. Though, SE “Ukrvodshlyakh” has tens of units of dredging machinery, and private companies make a profit out of port dues. “Ukrvodshlyakh” tells us, “You are our breadwinners”. It turns out strange: breadwinners are given a slap on the wrist…
Our Southern BugRiver is determined as navigation artery to Voznesensk point. In reality, it is not busy. Depth indices were 2.50 m (on Kostyantynivka rift), on Nova Odesa – Voznesensk part – not more than 1.60 m. Totally, the depth is not more than 2 m. The reason is mud, as the bottom consists of sludge and sand. The main problem is where to move soils. Earlier, “Ukrvodshlyakh” maintained the river; sludge was taken from the center of the riverbed and stored in rush. It was considered to be acceptable in terms of ecology. At present, intensive agricultural production and construction of facilities are performed on the banks of the Southern BugRiver, thus, causing further silting. Approaches and scheme to solve this problem are the same as with the DniproRiver. I wish there would be only state thinking and good will of those who make decisions concerning these issues.
Oleksiy Serbenyuk,
–      At present the issue of navigation safety on the Dnipro River is not in theory. A number of emergency events testify about it. In August 2007 a motor vessel with 250 foreign passengers ran aground when leaving the lock. The tourists were evacuated on shore by tugs of Dnipropetrovsk river port. In the Soviet Union, they tried to perform dredging by using explosive, but it turned out that underwater rocks is the continuation of plate basis, where Dniprodzerzhynsk metallurgical plant is located. Today there are new technologies, efficient machinery to crush rocks. They are mentioned in NIBULON’s program to dredge the DniproRiver.
“Institute “Ukrrichtransproekt” Ltd. has developed a project “Dredging works on limiting shallows in the Dnipro and Dniprodzerzhynsk Reservoirs”. Results of measurements have shown that the most dangerous navigation part is a limiting part in the area of Dniprodzerzhynsk: radius of rounding of navigation pass is less than 800 m, and depth – less than 3.65 m. The project provides for rounding of navigation pass with minimal radius of 800 m; there have been conducted calculations of the work amount when developing soil to a depth of navigation pass of up to 3.65 m; construction arrangement project was developed.
According to the outgoing data, the total length of limiting parts of the Dnipro Reservoir comprises 11.5 km, Diprodzerzhynsk Reservoir – 2.3 km. On the limiting shallows of the Dnipro Reservoir the depth of navigation pass is accepted from the calculated water level of 3.65 m (on “Novokaydatskyy” and “Arkhiereyska zabora” shallows – 3.85 m); the width of navigation pass and minimal radius of rounding on limiting parts of both reservoirs are 80 m and 800 m respectively.
Analysis of geological grit and physical and mathematic characteristics of crystalline rocks on the DniproRiver within limiting parts shows the possibility to use VOLVOEC380D excavator with HAMMERHB450 hammer installed on barge.
It should be mentioned that dredging is a huge step to be taken in order to revive navigation on the DniproRiver. According to the Order of the Cabinet of Ministers No. 640 dated 12.06.1996, the DniproRiver belongs to navigable inland waterways of Ukraine. And the State Water Agency issued an intradepartmental order that approves the rules of the reservoirs operation of the Dnipro Cascade. The order is closed for water users – judicial and physical persons. But it should not be, as based on the order, SE “Ukrenergo” provides schedules of water evacuation at the hydraulic power plant of the Dnipro Cascade only for twenty-four hours in advance, whereas taking into consideration the volumes of daily electricity consumption by settlements and international contracts to supply electricity, it is necessary to make schedules of water evacuation for 5-7 days in advance. As the impossibility of calculating water level of Dniprodzerzhynsk hydraulic power plant when loading floating facilities at the distance of Dniprodzerzhynsk lock results in a loss. Transport workers lose time while waiting for increase in the water level because of overloading of floating facilities (as well as underloading); this affects net cost of logistic expenses and competitiveness of domestic export products. An appropriate regulatory policy that includes interests of all entities when distributing volumes of water use in the reservoirs of Dnipro Cascade is of great importance.