Coordination Council Supports Launch of Experimental Project for the Development of Danube Ports

The Coordination Council has supported a submission to the Cabinet of Ministers of Ukraine regarding the launch of a two-year experimental project aimed at strengthening the resilience of export logistics routes in the Danube region, stabilising the operation of the port sector, and improving conditions for business. According to reports from Ukrainian specialised media citing the Ministry for Development of Communities and Territories, the key decisions include the creation of a unified Danube branch of the State Enterprise “Ukrainian Sea Ports Authority”, the reinvestment of profits from state-owned enterprises into the development of infrastructure and fleet, as well as tariff incentives for railway transportation to the ports of Izmail and Reni.

The project provides for the targeted use of part of port dues for regional development, as well as compensation mechanisms to support cargo flows towards the Danube ports. It is expected that the implementation of the proposed measures will help increase the guaranteed cargo flow to 2.5 million tonnes per year, preserve around 2,000 jobs in the maritime economic complex, and more than 3,500 jobs within JSC “Ukrzaliznytsia”.

A separate area of the project is the establishment of industrial parks in the ports of Izmail and Reni, as well as on the territory of the Ukrainian Danube Shipping Company. This is expected to attract new investment, expand the region’s logistics capacity, and create additional jobs.

The significance of this decision is further reinforced by the overall context of the functioning of the Ukrainian Danube cluster. In 2025, more than 8.9 million tonnes of cargo were handled through the Danube ports of Izmail, Reni, and Ust-Dunaisk, confirming their role as a critically important reserve export route for Ukraine amid wartime risks and periodic restrictions affecting the main maritime logistics system.

Comment by IDR experts

Experts of the Institute of Danube Research note that support for the experimental project is a timely step towards moving from anti-crisis response to the systemic modernisation of the Danube logistics hub. In their view, the creation of a unified management framework within the Danube branch of the Ukrainian Sea Ports Authority may improve the coordination of infrastructure decisions, accelerate the redistribution of resources, and ensure a more coherent policy for the development of the ports of Izmail, Reni, and Ust-Dunaisk.

The IDR emphasises that the combination of the port, railway, and industrial components of the project is of particular importance. This is not only about supporting current cargo flows, but also about shaping a new economic framework in the Ukrainian Danube area, where ports will perform not only as transshipment hubs, but also as centres of industrial development, processing, services, and multimodal logistics.

Director of the Institute of Danube Research Vitalii BARVINENKO stressed that the decision of the Coordination Council is of strategic importance not only for the port sector, but also for the entire south-west of Ukraine.

“The support for this experimental project effectively means recognising that the Danube route is not a temporary alternative, but one of the key elements of Ukraine’s long-term logistics architecture. Under current conditions, the Danube ports are providing a critically important reserve of resilience for exports, industry, and employment in the region.”