Andrii Kuzmenko, TIS Container Terminal

• Name: Andrii Kuzmenko
• Vocation: Director of TIS Container Terminal, EBA Southern Branch Board Member
• Nationality: Ukrainian
• Background: Born 1972, graduated Odessa Institute of Marine Engineers in 1994. 1995-1999 - managed representative office of "Sea-Land Service" in Ukraine. 1999-2003 – managed branch office of "Maersk Sealand" in Odesa. 2004-2005 – General Manager of Illlichivsk container terminal. 2005-2007 – Deputy Director (Commerce) of "Ukrtranscontainer" (subsidiary of "NCC", Russia). Developed "4M Program" and directly contributed to realization of the 1st phase of Illichivsk container terminal expansion to capacity of 850 000 TEUs (investments in excess of USD 51 mio). 2007-2008 – managed brownfield container projects of "Odessilmash PLC" (ICTP) and Illichivsk Fishing Port. Currently heads the Container Terminal of TIS - largest private stevedoring company in Ukraine. 1st phase of the project is completed in 2010 with capacity of 400 000 TEUs and full development to 2 000 000 TEUs. Project includes Ro-Ro yard, grain export capability, state-of-the-art IT system and extensive logistics facilities.

1. Please give a brief overview of your operations in Ukraine?

TIS – largest private stevedoring company in Ukraine. Last year we handled 12.2 million tons of different cargoes, mostly bulk – ore, coal, grain, fertilizers, but also steel and pig iron. We are #5 port in Ukraine and #10 at Black Sea. We are the largest investor into marine transport infrastructure of Ukraine – 350 million dollars invested and employ in excess of 2000 staff. We built 6 berths and dredged 6.5 million cu.ms., excavated another 7 million cu.ms. Our grain terminal is largest in the Black Sea and our coal terminal – largest in the former USSR.

2. Why did your company start business particularly in the Southern region? Is it attractive place to do business?

We started operations in 1994 in Adzhalyk harbor on the base of the unfinished terminal on discharging of the phosphor ore and converted it to the export fertilizers facility, further building new terminals. Located out of the main cities and remotely to the port of Yuzhny, it was quite convenient location to place a deep-sea bulk port.

3. Which business sector could be the driver of economic development of the region?

Marine transport and logistics should be the base for creation of an industrial park with different manufacturing and service companies. We have such project in our pipeline. Also the agribusiness shall play an important role, as well as trade.

4. 2010 moved to the end. How had the year been so far for your organization?

It was a difficult year but we managed to keep the volumes achieved during the incredible growth of 47% in 2009. So we are quite happy with that. Also, 2010 marked and end to the somewhat unpleasant conflict with some port officials, which made our company even stronger.

5. How would your company like to develop in the nearest future?

We will continue construction of the 2nd phase of the container terminal and will further develop the industrial park project by attracting the new partners. We plan to start a major warehousing project shortly.

6. Investors are often cautious about investing in Ukraine, in part because of irregularities in the legal system. What advice would you give to companies who are thinking of entering the Ukrainian market?

It may be done only with strong local partner. In respect of industrial park that's exactly what we provide – available infrastructure and superstructure of the established relations with all authorities, enabling our partners to focus on their core business.

7. How do you see the year ahead in Ukraine? Are you optimistic or pessimistic and why?

Taking into account unprecedented power concentration with the President, he has all necessary gears and means to realize reforms. We wish success and hope that resistance of the different corrupt bureaucrats will be crushed. However real reforms are yet to start. It is also pity that business community is hardly asked on their vision of the reforms and goals of the different reforms of changes are not clearly known to the business community.