In a bid to offset the loss of trade links with Russia, Ukraine is looking to become a transit hub for shipments which are coming from regions such as the Persian Gulf and China to the Baltics and Scandinavian countries, according to Bloomberg.
Volodymyr Omelyan, Infrastructure Minister for Ukraine, said: “I’d like to bring talks with China Shipping and Port Dubai to a successful completion. We have started discussing preliminary possibilities with Hutchison Port Holdings Ltd. There is a clear understanding that logistics at Ukrainian ports do not meet modern requirements. Many ports have to be rebuilt.”
This follows news that economic slowdown in Russia was having an effect on a number of ports in the Baltic states, including Latvia and Lithuania.
The economic crisis in Russia was also affecting terminal operators. Global Ports saw volumes slide 4.3% year-on-year to around 2.6 million TEU in March, 2015.
In light of the recent formation of a number of mega-shipping alliances, this could also affect ports in regions such as the Baltic, as well as many other ports globally, since the larger and less frequent ship calls are causing complexities in the supply chain.
In a piece of breaking news, South Korean carrier HMM has reportedly signed a Memorandum of Understanding with 2M to form the H2M alliance.