UDP Inks Deal to Upgrade the Engines of Its Pushboat Fleet
Ukrainian shipping company PJSC Ukrainian Danube Shipping Company (UDP) signed a letter of intent (LOI) with Belgian engine manufacturer Anglo-Belgian Corporation NV (ABC) to modernize its pushboat fleet.
The LOI signed under the auspices of the Embassy of Belgium in Ukraine provides UDP with the possibility to install hybrid engines with equipment provided by ABC for up to 33 UDP pushboats. The fleet modernization would enable UDP to prolong the life of outdated fixed assets and, in the meantime, expand its business operations to the higher Danube, and possibly the Rhein.
The ABC hybrid engines offer the possibility to use both traditional diesel fuel and other fuels (methanol, hydrogen). The equipment of UDP’s pushboats with ABC engines and technologies will meet all EURO STAGE V standards concerning fuel emission requirements.
UDP intends to engage its Kiliya shipyard to carry out the relevant repairs of the pushboats, while simultaneously, ABC will make its engineering specialists available to install the relevant equipment and hybrid engines.
At the moment, UDP and ABC are contemplating the feasibility of the noted business project and are looking into finding optimal sources to fund the project. Among possible financing scenarios, both parties consider engaging a targeted loan based on the relevant intergovernmental agreement between Ukraine and Belgium. Alternatively, they could call upon the EU or the European Bank for Reconstruction and Development (EBRD) for funds and/or grants. The overall budget of the project is estimated at €90 million ($107.5 million).