The delegation consisted of Periklis Saragiotis (private sector development specialist), David Sparks (senior port operations specialist), Robert Struthers (senior customs procedures specialist), and Oleg Nivevskyy (agrarian policy advisor)
The delegation aimed to study procedural and administrative obstacles preventing the development of efficient trade’s import-export flows of agrarian products (in particular, grain crops) as well as material and technical resources in the port and river sectors of Ukraine. This is actually a continuation of a methodical work performed by the World Bank to study different aspects in the Ukrainian agrarian policy.
During the meeting, the guests familiarized themselves with NIBULON’s logistics system, the company’s activities, its operation in Ukraine as well as abroad, etc. The guests observed the operation of NIBULON’s main export terminal, in particular, modern laboratories equipped with devices from global leading suppliers.
NIBULON’s General Director told about urgent problems in the Ukrainian trade logistics.
Challenges in the sea transport sector:
1. A state monopoly on infrastructure development (the Administration of Sea Ports of Ukraine (ASPU) inefficiently uses funds received from port dues); the absence of strategy to develop marine and economic complex in Mykolayiv region (first of all, the Bug-Dnipro-Lyman Canal).
2. Presence of tariff walls (economically unreasonable and uncompetitive port dues) and regulatory obstacles (navigation rules along the Bug-Dnipro-Lyman Canal).
3. The Administration of Sea Ports of Ukraine regularly tries to take over private sea transport facilities (for example, the expansion of water areas and territories of Mykolayiv Sea Port on account of NIBULON’s facilities).
4. The marine and economic complex develops itself differently in different regions; the state approach is absent.
Challenges in the inland water transport sector:
1. The state is not interested in developing and dredging navigable pass on inland waterways (the Dnipro and the Southern Bug).
2.  Presence of tariff walls (payment for locking, vessel traffic regulation, pilot service, etc.).
3. The imperfection of legislation that regulates the collection and use of excise tax on oil products consumed by vessels (inland and mixed navigation type) and the neglect of the best foreign experience (the USA, EU).
4. A hidden tax on cargo transported by river transport (river due) was set when developing the Draft Law of Ukraine “On Inland Water Transport”.
5. The state does not stimulate domestic demand for vessels of inland and mixed navigation type.
Challenges in the road transport sector: the state has started to implement strict weight restrictions on cargo transportation against underdevelopment of inland water transport and state monopoly on transportation by rail.
Challenges in the customs and fiscal sector: the absence of efficient system to detect and prevent fictitious exporters of agricultural commodities and tax evasion.
Having discussed the problems, the guests assured NIBULON’s management of objective and impartial analysis of the above mentioned problems, using all possible methods to eliminate legislative and administrative obstacles preventing efficient trade (in particular agrarian) logistics in Ukraine.