Ukraine Advances to Concession Competition for 1st and Container Terminals at Chornomorsk Port

Ukraine has successfully concluded the pre-qualification phase for the concession competition concerning the 1st and container terminals at Chornomorsk Port. This marks a significant step as the country prepares to engage in dialogue with the companies that have qualified for this crucial phase. The list of participants includes both Ukrainian and international firms, indicating a broad interest in this pivotal project.

Alexey Kuleba, the Deputy Prime Minister for Reconstruction and Minister for Communities and Territories Development of Ukraine, emphasized the importance of this process, stating: "We have completed the pre-qualification stage and are preparing to move into the key phase – dialogue with the participants who have been admitted to the competition." His remarks underscore the seriousness of the initiative aimed at enhancing the port's infrastructure and attracting investment.

As preparations for the dialogue with competition participants unfold, a model for the future project is being developed. This involves considering technological solutions, investment approaches, and risk management strategies. The Ministry of Development of Ukraine has highlighted that the number of applications will not be disclosed to maintain fair competition and equal conditions for all participants, as well as to ensure an unbiased review of proposals.

Moreover, participants in the competition are being screened for any connections with the aggressor state, as well as other risks to national security. This is a crucial step in ensuring safety and stability in Ukraine, especially amid contemporary challenges.

The ministry clarified that during the pre-qualification phase, the capabilities of companies were assessed, particularly their experience in managing large port or logistics facilities and executing infrastructure projects. These criteria are essential for selecting reliable partners for the concession project.

It is worth noting that at the end of March 2023, Ukraine completed the acceptance of applications for the pre-qualification stage within the concession competition for the 1st and container terminals at Chornomorsk Port and is now moving to review the submitted documents. The competition conditions stipulate that within three years of the concession's commencement, the investor is obliged to achieve a minimum target annual throughput capacity of 250,000 TEU and 3 million tons of other cargo.

In exchange for utilizing the port infrastructure and the opportunity to provide various commercial services, the concessionaire is required to make payments as per the concession agreement. This includes a one-time fixed payment to compensate for project preparation costs, an annual fixed payment subject to indexing, and an annual variable payment linked to the concessionaire's revenue.

Additionally, it has been specified that the concessionaire must finance the reconstruction of the overpass at a cost not exceeding $4 million (including VAT). This is a vital element for ensuring the effective operation of the terminals and improving the transport infrastructure in the region.

It is noteworthy that in September 2025, Ukraine announced its decision to hold a concession competition for the 1st and container terminals at Chornomorsk Port, which is set to become the first project of its kind in the port sector since the onset of the full-scale invasion. This reflects a revival of investment activity and Ukraine's commitment to modernizing its infrastructure.

In October 2025, the competition commission for selecting an investor for Chornomorsk Port engaged 12 external experts, whose candidacies were recommended by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). This ensures a high level of expertise and professionalism in the investor selection process.

The Ministry of Development declares that over 40 operators and investors have expressed interest in the project. This indicates significant enthusiasm for developing port infrastructure in Ukraine and the potential benefits that could arise from the project's implementation.

The project is expected to attract hundreds of millions of dollars for the modernization of berths and equipment, as well as over $1.1 billion in revenue to the budgets over 40 years. Furthermore, the project aims to preserve over 1,000 jobs with social guarantees and salary indexing, restore container traffic to 250,000 TEU annually within the first three years, and further increase to pre-war levels of over half a million TEU.