Ukrainian Danube Shipping Co seeks 86 mln euros from IFC to modernize fleet

MOSCOW. June 18 (Interfax) - The state-run Ukrainian Danube Shipping Company (UDP) is seeking 86 million euros of long-term financing from the World Bank Group's International Finance Corporation (IFC) for fleet modernization and renovation, Ukrainian media quoted UDP Director Dmitry Moskalenko as saying on social media.

"The IFC has agreed to conduct due diligence on the Danube Shipping Company to obtain long-term financing for the fleet renovation program," Moskalenko said.

He said UDP expected to be able to tap the corresponding credit facility by the end of 2024.

"The program will make it possible to modernize the entire self-propelled UDP fleet in operation in a few years," Moskalenko said.

The shipping company has already begun implementing the program and is financing it from its own funds. The first of five modernized vessels with new engines and control systems will depart from Linz in Austria to Ukraine in early August, he said.

Earlier in June, UDP and IFC extended the fleet modernization and renovation agreement concluded a year ago.

The UDP fleet carries out river transportation along the entire navigable section of the Danube from Ukrainian ports and the port of Constanta in Romania to the port of Kelheim in Germany and in the opposite direction. The cargoes include iron ore, coal and coke, grain, metals, fertilizers and petroleum products. Most cargo in 2023 was grain shipped from Ukrainian ports on the Danube to Constanta, as well as iron ore from Ukrainian ports to Serbia, with grain shipped on the way back towards Constanta.

The company restarted seaborne transportation in 2023.