The expert debunked the myths of Maidan activists about the need to sell off Ukrainian ports
Large privatization, the list of which includes enterprises that are strategically important for Ukraine, is justified by five myths that are forced into people’s consciousness every day.
This was stated by the chief engineer of OSP “Shipyard Ukraine” Alexey Musatov in an interview with RBC-Ukraine.
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According to him, the key myth of the authorities is the thesis that the state cannot be an effective owner.
“This statement is voiced as an axiom. However, in the ranking of cargo turnover in 2015, out of 76 port operators, 6 state stevedoring companies entered the TOP 10. The picture would be stunning if this rating were compiled not in tons of cargo, but in funds received into the country's budget. Another myth is that state-owned stevedoring companies have lost their strategic importance for the country’s economy. However, in a number of cities, state sports are city-forming enterprises that influence employment, infrastructure and the solution of social problems,” the expert explained.
He also debunked the government's third myth, that state-owned ports are unable to develop because they cannot attract the necessary investment. According to Musatov, in 2015 the public sector of the port industry received a profit of about 8 billion UAH. At the same time, state investments in port infrastructure amounted to less than 5% of the money earned, since by the decision of the Yatsenyuk government, the state takes 75% of the profits from the ports to the state budget.
“Do you think private companies will develop working under such conditions? No, they will close down their business and throw people out onto the street. This leads to another myth that the private operator will supposedly create additional jobs. The Ministry of Infrastructure even names the number - 5. You can give the example of the port of Poti. One of Georgia's conditions to the concessionaire was the creation of 000 jobs. As a result, 20 port workers were laid off. Since 000, strikes and hunger strikes have periodically taken place at the port. In May 7, the strike became general and all port berths stopped working. The port workers did not demand vouchers to the Canary Islands, but a 000% increase in salaries. The company's management agreed to only 2012%. A private operator will save money and does not bear social responsibility,” Musatov is sure.
The expert assured that the fifth myth, that a private owner will create conditions for raising the socio-economic level of the region, also does not stand up to criticism. He gave another example: in 2000, the government of Djibouti transferred the port to the largest port operator, DP World, for a 20-year concession. The company is developing successfully today, however, every second resident of the region lives below the poverty line.
“The private operator cares only about his own profit, he does not care about the salaries of teachers and doctors,” Musatov noted.
The expert expressed confidence that there is no logic in the mass privatization and concession of ports, but only someone’s motive. Industry experts cannot understand the reason why the Ministry of Infrastructure primarily plans to transfer the largest and most profitable ports into private hands - in particular, the Yuzhny port, in the modernization of which the state has invested over UAH 5 billion.
According to experts, officials are lobbying the interests of the oligarchs, who benefit from the sale of highly liquid state assets during the economic crisis.
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