Fleet renewal PJSC "Ukrainian Danube Steamship"

PJSC "UDP" today has a sufficient number of self-propelled fleet to provide the calculated cargo base with traction, but it is significantly worn out (by 94%) and needs to be renewed. The significant average age of the self-propelled and non-self-propelled fleet of PrJSC "UDP" has an extremely negative effect on the economic efficiency of its operation, in particular with regard to fuel costs, crew maintenance, repairs and spare parts for the fleet, etc.

In addition, the engines of the ships of the river steamship fleet do not comply with modern regulations in terms of emissions of harmful substances into the air, so there is a risk of getting a ban on the west of river tugs and self-propelled vessels of PrJSC "UDP" to EU Danube ports. 

In order to minimize material costs in the cost of the renewed fleet, UDP PJSC chose the path of modernization of river tugs and self-propelled vessels. Taking into account being in fresh water, the hulls of the vessels are in good condition, therefore only the main and auxiliary engines, electrical equipment, radio navigation systems, other ship mechanisms will be subject to replacement, which will reduce the cost compared to the construction of a new tug of similar capacity by 2 times (2.2- 3.2 million euros against 5.0-7.0 million euros).

Due to low capitalization, significant depreciation of assets and low depreciation deductions, PrJSC "UDP" does not have enough funds to finance the renewal of the fleet with its own funds, which is the main limitation of the ability to implement the project. Currently, the company is negotiating to attract institutional financing from the World Bank's International Finance Corporation (IFC).

Within cooperation with IFC, an Action Plan has been developed for reforming the corporate governance and organizational structure of UDP PrJSC. according to the best global practices. Completion of the transformation processes is planned for the end of 2024.

Sudna PJSC "UDP" will be equipped with modern engines that meet the highest EU Stage V and MARPOL 73/78 Tier III environmental requirements in terms of pollutant emissions. Today, the shipping fleet is equipped with engines manufactured in the 1960s and 1970s. The actual measurement of pollutant emissions on river vessels is not regulated in Ukraine, however, in general, existing engines can be equated to the EU Stage I environmental standard. 

Due to the modernization of the fleet, cargo owners of Ukraine and the Danube countries will have access to transportation with a total carrying capacity of 3.6 million tons of cargo per year, which will be carried out in the most ecologically "clean" by ships on the Danube.

It should also be noted a significant improvement in working conditions on the ship due to the expansion of living quarters (smaller number of crew for the same general dimensions of the ship), reduction of noise and vibration levels, absence of the need to keep a constant watch in the engine room, etc.

Preparatory work on the modernization of self-propelled vessels and tugs is planned to be carried out at the own Kiliy SBSRZ, due to which at least 70 additional jobs will be created.