Ports : DP World TIS Pivdennyi container terminal in Ukraine shows good results in the first 12 months

The DP World TIS Pivdennyi container terminal in Ukraine has enjoyed a remarkably successful first 12 months whilst under the ownership of DP World, according to the company’s release.

DP World, a global leader in end-to-end smart logistics, completed the 51% acquisition of the terminal in June 2020 and manages the operation with its local partner, terminal operator, TransInvestServices (TIS).

The acquisition and handover of the port took place at one of the most challenging times in the history of global trade, however, the port has defied all the odds to deliver a strong performance along with several milestone achievements.

Last month, as DP World celebrated 12 months in charge, it announced that the world’s largest shipping container line, Maersk, had transferred its entire Ukrainian business from Port of Chronomorsk to DP World TIS Pivdennyi.

Maersk currently handles approximately one out of every three containers that enter Ukraine – which will translate to the volumes handled by DP World TIS Pivdennyi once the shipping line’s consolidation of its business is complete in August.

DP World Europe & Russia CEO Rashid Abdulla said: “DP World has been working in Ukraine with TIS and P&O Maritime Ukraine for many years, therefore we have been well aware of the potential in this market for a long time, which is why we were so delighted to complete the acquisition last year.

“Our first 12 months working alongside TIS have soared past expectations, which is remarkable given the circumstances, and that demonstrates the strength of the market as well as the level of talent and commitment we have in the team in Pivdennyi.

“This has been most obviously demonstrated by Maersk’s decision to move the rest of their Ukraine business to our terminal and we are looking forward to that relationship developing even further in future.”

Recent rail development at the port has boosted its onward links to other destinations, making the terminal even more important to Ukraine’s trading networks and helping to reduce carbon emissions with the new infrastructure capable of taking the equivalent of more than 10 000 lorries off the roads per year.

For Pivdennyi, this means not only a more efficient cargo transportation option – moving 90 containers per single train departure – but it is also more reliable, less weather-dependent, and has a lower impact on traffic and wear and tear on Ukrainian roads.

Rashid continued: “The rail connection embodies DP World’s philosophy of port-centric logistics, which means bringing together multi-modal transport options into one port. The result is that cargo is moved more efficiently, more cost-effectively and with less environmental impact than through more geographically dispersed connections.

“Multi-modal transport and digitalization of operations are our two main focus areas for investment across our locations in Europe.”

The port of Pivdennyi plays a key role in the development of the country and its economy. The top five products most frequently shipped through the terminal over the last year were FMCG goods, rolled steel, bananas, cars, grains, and over-consumer goods, which are vital to manufacturers and consumers in the country.

Rashid added: “The Ukrainian government has encouraged inward investment to allow their economy to continue to grow and the signs in our industry point towards a very strong future for it and therefore the country.

“Over the past decade, we have grown our European network to link between key strategic ports to allow us to offer our customers end-to-end services with our partners across the continent and into Asia, which Ukraine can offer due to its strategically important location.

“The Ukrainian market is absolutely key to our European and global strategies, therefore this is just the beginning of the story for DP World TIS Pivdennyi, with more investment and development planned in the near future. The truly exciting part is what comes next and what that means for the sector in Ukraine, the people it serves, and the countries it trades with.”

About DP World

DP World is the leading provider of smart logistics solutions, enabling the flow of trade across the globe. DP World delivers its services through an interconnected global network of 128 business units in 60 countries across six continents, with a significant presence both in high-growth and mature markets.

About TIS

TIS is the largest private marine transport hub in Ukraine. The most advanced seaport in the country with its own railway infrastructure. Five specialized terminals connect Ukrainian business with more than 1,500 ports around the world: in Europe, Latin America, and Southeast Asia.

Cargo turnover in 2020 exceeded 36.67 million tons, becoming a record for Ukrainian ports throughout the years of Ukraine’s independence.

TIS is the largest national investor in the port industry in Ukraine. During its work, TIS has invested more than $ 770 million in its own development and in the development of the industry. One of the largest taxpayers in the region and in the Ukrainian port sector. In 2020, the TIS marine transport hub paid more than UAH 1.89 billion in taxes and fees to the budgets of different levels.