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Some Aspects of Ukraine Competitiveness Improvement in the Black Sea Region Transshipment Market

Author(s): L. Tertychnaya | M. Voloschuk

Journal: Economics of Development
ISSN 1683-1942

Volume: 57;
Issue: 1;
Start page: 62;
Date: 2011;
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Keywords: maritime transport | container transportation | freight transit | transshipment | the Ukrainian ports | competition | conditions for development.

It has been researched that Ukraine as a maritime state cannot stay aside the processes that take place in the overseas transport market, especially containerization and the growth of transshipment share in this market. The Ukrainian legislation improvement was required by the competitiveness intensification in the Black Sea Region market. As a result the Law " About Changes of Some Legislative Acts of Ukraine concerning the Transit Freights Customs Official Registration Simplification" was adopted on 1st June, 2010. These changes in current legislation allow to shorten the term and to reduce the cost of Customs Official Registration. However, there are still serious obstacles for the Ukrainian ports competitiveness in the transshipment market.Conditions, leading to the transshipment extension in the ports have been defined. These are the existence of necessary capacity market near the prospective hub; the hub geographical proximity to the ports that will be served by the feeders; the capacity and call cost.It has been emphasized that Rumanian Konstanza is still leading and is a monopolist in the region at the moment. However, the positive dynamics of container terminals production facilities development in such ports as Illichevsk, Odessa and Yuzhnyi and more advantageous geographical location allow to predict the forthcoming changes in the transshipment market for benefit of Ukraine. Today only uncompetitive service prices of Ukrainian ports and their fixing out-of-date mechanism are the obstacles for transit containers flows in Ukrainian staging posts. Thereby, the competitive advantages in this perspective for Ukraine sphere should be gained further.
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