UTC entitled to Illichivsk operations

According to the court’s decision, Ukrtranscontainer (UTC) is entitled to use the port and the container terminal equipment it put into place. UTC (part of the National Container Company) has operated the venture in Illichivsk since August, 2005, and during this time put in a total investment of US$61m.

This included handling equipment, which helped increase the terminal capacity up to 850,000 teu. However, the handling equipment was confiscated by the port when UTC was locked out by the port authority over a year ago, citing an “inefficiency for Ukraine” law for the action. The port then went on to use the confiscated equipment itself.

UTC has already notified the port administration about resuming the joint operation at the terminal. “Still we have every reason to believe that the port authority will prevent from execution of the legal decision,” said Vladimir Popov, Ukrtranscontainer’s chief executive.

According to National Container Company (NCC), contract renegotiations with container lines will take about a month and reassignment of contracts with the terminal workers will take at most two months. NCC says it will make every effort so that the change of terminal operators will not affect vessel handling at the port.

According to Ukraine’s law, the Commercial Sea Port of Illichivsk has 20 days to file a cassation appeal but this does not cancel or suspend the verdict execution. “It took more than a year to reinstate violated rights of the investor and today we are going to start operations at the container terminal as soon as possible,” concluded Mr Popov.