Investment Needs and Port Infrastructure Financing
Authors:   National University ", Sotnychenko L. ,   Odessa Maritime Academy", Sivan A. ,   National University "Odessa Maritime Academy"
Published: December 2021

The article emphasizes that very often the main benefits from port projects come from the wider community and the economy, rather than the port industry itself. This is especially true when ports invest in basic infrastructure to provide opportunities for future growth. In addition, a number of investment requirements have joined the ports' requirements to invest in basic infrastructure, as a result of broader societal imperatives, especially in the areas of environmental and energy policy. Ports, in addition to nodes of transport networks, are also sites for a number of activities that may require certain facilities. Based on this broad definition, it is possible to name different types of port infrastructure. There are twelve types of investment in infrastructure. Investments can relate to the construction of new infrastructure, as well as the modernization or reconstruction of existing infrastructure. In general, investments in maritime access benefit all port users, rather than specific segments and specific terminals in the port. Infrastructure investments are needed by seaports to increase their efficiency, address the growing and changing needs of production and supply chains, and adapt to the requirements of sustainable transport in terms of air quality, climate change and biodiversity. Increasing the size and complexity of the fleet. Growth of processing volumes in ports. Long-term transition to decarbonisation of the economy by reducing greenhouse gas emissions, increasing energy efficiency and absorbing low-emission energy sources. Stricter requirements for environmental performance and absorption of alternative fuels. Pressure to increase the modal distribution of more sustainable modes of transport. Pressure towards urbanization of coastal areas, especially in densely populated areas. Strong digitization of almost all parts of the economy, including manufacturing, logistics and transport. Port management models and responsibility for infrastructure investments. Generalized trends lead to investment needs in port infrastructure. Decisions on these investments are made by various entities. This depends on the current model of port management, which differs significantly from one Member State to another. Investments in viable port infrastructure are those that are expected to be of great value (to the benefit of both consumers and society as a whole) in terms of their costs. However, not all viable investments bring the necessary financial return on investment to make them commercially attractive based on the commercial situation. Ports are strategic assets and are defined as "critical infrastructure"). The geopolitical dimension of port development reinforces the argument for public funding mechanisms, as the lack of such mechanisms will accelerate the participation of foreigners in the development of critical port infrastructure. It is necessary to form a platform with mechanisms for providing final support for port development and certain investments.