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9.2.3 Transport corporate news
Boosted by UIA’s hub strategy, Boryspil accounted for 63% of the 22.6mn passengers who used Ukraine’s airports through November. This passenger flow is 19% higher than during the first 11 months of 2018. But attesting to the fierce competition from foreign low-cost carriers, Ukrainian carriers only increased their passenger numbers by 10%. About 90% of all air passengers using Ukrainian airports fly internationally.
The net profit of Ukrzaliznytsia (Ukrainian Railway) is estimated at UAH2.5-3.0bn in 2019, Interfax-Ukraine reported on January 23 citing the company’s CEO Yevgen Kravtsov. According to the company’s financial plan for 2019, it should have generated net revenue of UAH102.7bn, EBITDA of UAH25.1bn and net profit of UAH4.5bn (up 22x y/y). In 1H19, the company reported UAH1.1bn of net profit, up 2.3x y/y. The company’s 2019 profit estimate implies that it under-performed its annual financial plan. Nevertheless, it’s the best financial result in the company’s history. The company will remain among the least leveraged in Ukraine’s fixed income universe based on the 2019 results, with net debt to EBITDA ratio remaining below 2.0x, we estimate.
Qatar’s QTerminals has won a 35-year concession tender to run Olvia, a 180-hectare, year round seaport 20 km south of Mykolaiv City. QTerminals is Qatar’s leading port operator, operating Hamad, the country's largest trading port. Last year, the company handled 1.3mn containers – one third more than all containers handled by all of Ukraine’s ports. Under the deal, QTerminals is to invest $140mn in Olvia through 2024. In addition, it is to pay an annual concession fee of $3.3mn to Ukraine – a payout 16 times larger than Olvia port’s profits last year. “This is one of the largest foreign investments in the port industry, in the whole history of Ukrainian independence,” Infrastructure Minister Vladislav Krykliy writes on Facebook.
– including the Chornomorsk ferry complex – and 10 railroad stations. Feasibility studies are being prepared for concessions to run four regional airports: Chernivtsi, Kherson, Lviv and Zaporizhia. To highlight poor public management, he said: “My favourite is Kyiv Central Rail Station. Last year, it lost $2mn. Next door, the McDonald’s made $3mn. And the traffic at the rail station is much higher.”
9.2.4 Construction & Real estate corporate news
9.2.5 Retail corporate news
The World Trade Association has licensed World Trade centre Kyiv,
reports Henry Shterenberg, president of the new organization. World Trade centre Kyiv is to open at the end of this year at the Ramada Encore hotel and office complex on the Stolychne Highway, 15 km south of central Kyiv. Around the world, there are 328 World Trade centres in 91 countries.
IKEA plans to open its first e-commerce store in Kyiv in the spring of 2020, reports Novoye Vremya Business citing the company. "In order to make the IKEA range of functional products with attractive design and prices as affordable as possible to Ukraine as soon as possible, the company has decided to launch e-commerce first. The expected launch date is spring 2020.
62 UKRAINE Country Report February 2020 www.intellinews.com
