The State Property Fund has cancelled the twelfth auction for the sale of the state-owned Belgorod-Dniester Seaport, which was to take place on 31 October 2024. Information about this was published in the Prozorro system.
The auction, which had an initial value of almost UAH 178 million, was not held due to the lack of interested buyers. To stimulate investor interest, the State Property Fund plans to reduce the starting price at the next auction, scheduled for 8 November, to UAH 89 million, or by half.
Problems with the port Companies that might consider buying the Belgorod-Dniester port say that its investment attractiveness does not match the stated price. According to Oleg Arestarkhov, Group DF’s Head of Corporate Communications, the payback period of the asset is too long for the current investment environment.
Among the reasons for the port’s low competitiveness is its insufficient depth, which makes it impossible to receive Panamax vessels with a capacity of up to 60,000 tonnes, which are popular among large companies. This creates a serious disadvantage compared to the ports of Greater Odesa.
Logistical difficulties also add to the problem: the damage to the bridge across the Dniester estuary caused by the hostilities has made it difficult for ships to access the port. The lack of dredging further limits the port’s ability to accommodate large vessels, making it less attractive to large agro-exporters.
In addition, the port has significant debts of UAH 121 million, including to the budget and wage arrears. These debt obligations, which will need to be repaid when the port is acquired, increase financial risks for potential investors.
