The Ambassador of France to Ukraine, Gaël Veyssière, visited the facilities of NIBULON in Mykolaiv, where he met with the Director of Government Relations, Mykhailo Rizak. During the meeting, they discussed the key challenges facing Ukraine’s agricultural sector and ways to ensure global food security.
Mykhailo Rizak emphasized the difficult situation caused by the closure of the Mykolaiv seaport hub, the halt of the shipbuilding industry, and the suspension of navigation along the E-40 river routes (the Dnipro and the Southern Buh) following Russia’s full-scale invasion of Ukraine. According to him, the company has suffered losses of over $500 million.
The port facilities in Mykolaiv are ready to resume operations as soon as a political decision is made to reopen them. This would increase competition in cargo transshipment and reduce logistics costs associated with exports. Over 100 vessels, including 30 foreign seagoing vessels and 70 vessels designated for inland waterways, are still blocked in the Mykolaiv port hub.
The evacuated vessels previously used for transportation are now idle and seeking new water routes around the world, including on the Danube River.
“The development of alternative export routes is no longer a matter of choice but an urgent necessity for global food security. The Danube ports are now strategic for the economic security of Ukraine, and we must do everything possible to maintain their competitiveness,” stated Mykhailo Rizak.
During the discussion, special attention was given to the tariff policy of Ukrzaliznytsia (Ukrainian Railways). The representatives of NIBULON emphasized that with the opening of deep-water ports in Odesa, transportation costs through the Danube ports were at least $5 per ton higher; considering the announced tariff indexation, the difference could reach $7 per ton.
The indexation of Ukrzaliznytsia tariffs will either become a lifeline for water transportation on the Danube River or an unbearable deadweight anchor.
Mykhailo Rizak called for considering the possibility of implementing tariff indexation without applying it to routes to/from railway stations near the Danube ports.
This approach would equalize the competitiveness of the Danube ports with deep-water seaports and stimulate further development of the Danube infrastructure, supported by USAID and other international donor programs. By doing so, Ukraine will ensure stable exports without financial losses in case of a security escalation in the Black Sea, and international partners will witness the real development of the Solidarity Lanes launched by the European Commission.
The French Ambassador highly appreciated the work of NIBULON and expressed readiness to assist in resolving critical issues at the international level.
Last year, The Ambassador of France for the Black Sea visited NIBULON’s facilities in Mykolaiv. During the visit, Michaël Roux and NIBULON’s representatives discussed the issue of the blocked fleet and the necessity of its evacuation to increase the export potential of the Danube.
