Nibulon’s losses due to the blockade of the Mykolaiv port exceed $500M.

One of the largest agricultural companies in Ukraine, Nibulon, suffered financial losses of more than $500M due to the closure of the Mykolaiv seaport hub. The suspension of shipbuilding and the cessation of shipping on the Dnipro River and Southern Bug Rivers began immediately after the start of the full-scale invasion, said top manager of Nibulon Mykhailo Rizak.

He added that the Mykolaiv port facilities are ready to resume operations after a political decision is made to open them. It is expected that this will increase competition in the transshipment market and reduce logistics costs. Currently, 30 foreign maritime vessels and 70 inland waterway ships are stuck in the Mykolaiv port hub.

With the opening of the deep-water ports in Odesa, transportation costs through the Danube ports have increased by $5 per ton, and an increase in Ukrzaliznytsia tariffs may lead to increased shipping costs of $7 per ton, says Rizak. Nibulon hopes that the indexation of tariffs will not affect routes to and from railway stations near the Danube ports, which will help maintain the competitiveness of Danube transportation against the background of deep-water seaports.