The acquisition of the complex will help the company solve two important issues: creating a powerful logistics base for more efficient and, from a logistics point of view, more mobile fuel supply to the network's filling stations in the south and east of Ukraine. In addition, OKKO is making a serious step in diversifying fuel supply sources.
"By obtaining our own port facilities, we also gain direct access to the Mediterranean oil products market. And under favorable market conditions, we can increase the volume of fuel imports to Ukraine from Greece, Bulgaria, Turkey, Turkmenistan, and other countries. We are talking about 150-200 thousand tons per year," comments OKKO Vice President Yuriy Kuchabsky.
The Kherson oil transshipment complex consists of an oil harbor, where tankers are unloaded and oil products are stored, as well as an oil depot that has access to the railway infrastructure. The facilities are connected by an oil product pipeline.
"According to preliminary estimates by our specialists, the volume of investment in the modernization of the complex could amount to up to USD 3 million," adds Yuriy Kuchabsky.
According to the company's estimates, first of all, it is necessary to carry out major repairs of the tanks with replacement of shut-off and breathing valves; install fire-fighting equipment and a gas balancing system; replace the auto-loading point with modern automated equipment.
The modernization will make the operation of the oil transshipment complex safe and efficient, bringing it in line with international standards. As previously reported, in the summer of 2020, two credit lines of USD 35 million each were opened for OKKO by the European Bank for Reconstruction and Development and the International Finance Corporation. The company plans to allocate part of these funds to the reconstruction of the oil transshipment facility in Kherson. The implementation of this project will also contribute to the creation of new jobs in the region and an increase in tax revenues to the local budget.
