Ukrainian Danube Shipping Company shows strong performance and adopts European governance standards

The Institute of Danube Research (IDR) highlights the significant progress achieved by the Ukrainian Danube Shipping Company (UDP), which continues to play a crucial role in restoring navigation on the Danube and developing the region’s transport potential.

As of September, the company demonstrated notable improvements in its operational and financial indicators:

-       the average number of convoys increased 3.8 times;

-       the average monthly volume of river cargo transport grew by 43%;

-       the volume of return loading of vessels doubled.

UDP has reduced losses, stabilized cash flows, and nearly halved administrative expenses, while introducing modern corporate governance standards and preparing to adopt international financial reporting standards.

A key step in the company’s transformation was the establishment of UDP’s first Supervisory Board, which includes independent members — Michael Jorgensen, Dennis Olesen, and Benoît Pleska (Chairman) — as well as state representatives Andriy Kashuba and Taras Boichuk.

At its October meeting, the Supervisory Board approved updates to internal policies, the introduction of a corporate secretary and internal auditor, and transparent recruitment procedures for management positions.

In addition, the UDP’s training simulator complex project has been included in the National Project Portfolio. The initiative aims to strengthen the company’s human resources and ensure sustainable fleet development.

With the support of the United Nations Development Programme (UNDP) in Ukraine and the Government of Japan, an anti-corruption system audit has also been launched — another important step toward transparency and integrity in state-owned enterprises.

“The Ukrainian Danube Shipping Company is undergoing a period of deep renewal. We see real changes — from fleet efficiency growth to the introduction of European corporate governance standards,” said Andriy Kashuba, Deputy Minister for Communities and Territories Development of Ukraine.

Comment by the Institute of Danube Research:

“The modernization of the Ukrainian Danube Shipping Company is a strategic step toward strengthening Ukraine’s role as a Danube state.

Improved transport efficiency, the creation of a Supervisory Board, and the launch of anti-corruption measures are in line with the principles of good governance and sustainable development.

These reforms facilitate the integration of Ukraine’s river transport into the European transport area, expand logistics chains, and enhance the competitiveness of the Danube region,” — stated the Institute of Danube Research.