Evaluation of seaports’ investment attractiveness

Olena Palyvoda,Oksana Karpenko,Valentyna Vlasova,Nataliia Bondar,Olga Mishulina

doi:10.21511/imfi.17(3).2020.13

Abstract

Ukraine’s European integration requires the involvement of seaports in the international TEN-T network, so it is extremely important to create favorable investment conditions to develop port infrastructure. This study aims to make a comprehensive assessment of the seaports’ investment attractiveness to use it for increasing the efficiency of attracting investment in the development of Ukrainian seaports, which are part of the European transport network. The study was conducted using the Saati method and the method of calculating the integrated indicator of seaports’ investment attractiveness. The integrated indicator includes assessing indicators of business activity in the region and consolidated indicators of financial and property status, logistical attractiveness, and prospects for port development. According to the results of calculations, the seaports of Ukraine were divided into three groups. The ports of Yuzhne, Odesa, Illichivsk, and Mykolaiv have a high level of investment attractiveness. The ratio of investment attractiveness ranges from 3 to 2.6. The ports of Izmail, Mariupol, Oktyabrsk, and Kherson have an average level (ratio from 2.2 to 1), and other ports have a low investment attractiveness (coefficient from 0.9 to 0.7).

Highlights

In the conditions of deepening Ukraine’s European integration, seaports’ development as starting points of transport corridors is especially important
Implementation of the Association Agreement between Ukraine and the EU provides for integrating Ukrainian seaports into the international TEN-T network with the subsequent creation of a single sea window, transit routes, and a secure sea network
Ukrainian seaports require significant additional investment. This is due to the rapid development of logistics, improvement of port infrastructure technologies, construction of new infrastructure facilities, and raising environmental standards

Summary

Introduction

In the conditions of deepening Ukraine’s European integration, seaports’ development as starting points of transport corridors is especially important. Implementation of the Association Agreement between Ukraine and the EU provides for integrating Ukrainian seaports into the international TEN-T network with the subsequent creation of a single sea window, transit routes, and a secure sea network. This is due to the rapid development of logistics, improvement of port infrastructure technologies, construction of new infrastructure facilities, and raising environmental standards. There is a need to properly assess the investment attractiveness of seaports as objects of investment. Assessing the investment attractiveness of seaports is important for both private investors and public authorities, as it provides them with additional information on the level of development of seaports and its prospects

Objectives

Discussion

Conclusion