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Corresponding author:
1 Donetsk National University of Economics and Trade 
named after Mykhailo Tuhan-Baranovskyi, Ukraine.
E-mail: st.vlad.1995@gmail.com
ORCID: https://orcid.org/0000-0001-8370-6137
ResearcherID: AAF-4190-2021

DOI: https://doi.org/10.30525/2661-5150/2020-4-21

PROVIDING A MECHANISM FOR IMPLEMENTING  
THE STRATEGY FOR IMPROVING THE COMPETITIVENESS  
OF UKRAINE’S MARITIME TRANSPORT INFRASTRUCTURE

Vladyslav Stepanenko1

Abstract. The purpose of the article is to develop a mechanism for implementing a strategy for increasing the 
competitiveness of the Ukrainian maritime transport infrastructure. Methodology. The mechanism for implementing 
the strategy for increasing the competitiveness of Ukraine’s maritime transport infrastructure should have a 
systemic and comprehensive nature, all its elements should be interconnected and aimed at achieving a common 
goal that can guarantee the implementation of the strategic goals and priorities of the proposed concept. Results. 
The article is devoted to the formation of a mechanism for the implementation of the strategy of increasing the 
competitiveness of the Ukrainian maritime transport infrastructure, taking into account the European integration 
orientation. The proposed mechanism consists of key planes and their elements: methodological: (political, 
administrative, legal, organizational, economic, social methods; principles of consistency and complexity, flexibility, 
strategic importance, synergy, congruence, integration, innovation, adaptability, consistency, hierarchy; functions: 
goal setting – planning – organization – motivation – control – coordination); organizational and resource 
(institutional, organizational, financial, technological, information, socio-economic support); operating room, 
including a sequence of five stages (I – III stages. Development and adoption of the MTI development program of 
Ukraine and measures to implement the strategy at all levels of government (mega, macro, meso, micro. IV stage. 
Implementation of developed measures. V stage. Evaluation of the implementation of the strategy to increase the 
competitiveness of MTI of Ukraine). Practical implications. The directions of increasing the competitiveness of the 
Ukrainian maritime transport infrastructure are determined, namely: financial, personnel, regulatory, organizational, 
information technology and environmental. An algorithm for the implementation of the strategy to increase the 
competitiveness of the Ukrainian maritime transport infrastructure is presented. Value/originality. It is noted that 
the proposed mechanism for implementing the strategy for increasing the competitiveness of Ukraine’s maritime 
transport infrastructure in the context of European integration will ensure the constant, efficient, competitive, 
stable development of Ukraine’s maritime transport infrastructure.

Key words: maritime transport infrastructure, strategy, European integration, competitiveness.

JEL Classification: F15, L62, L90, N70, Q53

1. Introduction
Current state and development trends of the 

Ukrainian maritime transport infrastructure 
(reduction of volumes and cargo handling, reducing 
the attractive image of Ukraine as a reliable 
counterparty in international transport relations, 
decrease in competitive positions and profitability of 
seaports due to depreciation of fixed assets (more than 
70%), inconsistency of their technical level) testifies 
to the systemic shortcomings of the internal maritime 
transport infrastructure management as part of the 

transport infrastructure of the state. These trends 
require urgent solutions for effective management 
and the formation of a mechanism for implementing 
the strategy to increase the competitiveness of the 
maritime transport infrastructure, taking into account 
the European experience of reforms in this industry.

2. The formation of a mechanism  
for implementing the strategy

The mechanism for implementing the strategy for 
increasing the competitiveness of Ukraine’s maritime 



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transport infrastructure (MTI) in the context of 
European integration is consistent, complex and 
cyclical and is a system of interrelated elements. The 
proposed mechanism is adaptive and can change its 
structure by introducing new elements, the appearance 
of which is the result of a number of adjusted strategic 
objectives, measures, management methods or 
resource and operational support.

Comprehensive filling of the mechanism for 
implementing the strategy for increasing the 
competitiveness of the MTI with functional elements 
and resource support will contribute to the effective 
management of the competitiveness of the maritime 
transport infrastructure and operational support for the 
implementation of the strategy.

The implementation of the strategy for increasing 
the competitiveness of Ukraine’s MTI provides for the 
creation of a mechanism (Figure 1) able to ensure the 
adoption of effective management decisions, using a 
set of principles, tools, functions and methods affecting 
the process of managing the competitiveness of MTI, 
taking into account the influence of the determinants 
of managing the competitiveness of MTI in the context 
of European integration.

Determination of strategic priorities and objectives 
of the strategy for increasing the competitiveness of 
the Ukrainian maritime transport infrastructure and 
on the basis of the tools for implementing the strategy, 
we will determine the directions of increasing  
the competitiveness of the Ukrainian MTI, namely: 
financial, personnel, regulatory, organizational, 
information technology and environmental  
direction.

3. Financial support
1. State financing or financing at the expense of own 

funds of the State Enterprise “Ukrainian Sea Ports 
Authority” (USPA).

2. Financing from extrabudgetary funds, including 
investor funds.

3. Financing by raising debt capital or issuing shares.
4. Financing through the creation of a joint venture 

between the port authorities and port stevedore(s), 
shipowners, cargo owners and others.

4. Staffing
The main trend in modern education and training in 

the field of maritime transport infrastructure should 
be a shift from supply-side learning to demand-driven 
learning. The focus should be on individual workers, 
their productivity and skill level. Also it is necessary 
to maintain high standards of personnel training and 
professional competence of crews to ensure the safety 
of navigation and environmental transportation. 
Therefore, an adequate basis should be provided for the 

training and retraining of crews in the form of activities 
aimed at:

1. Enhancing the image of shipping and a career in the 
maritime industry.

2. Developing professional highly specialized 
standards for workers in the field of MTI in accordance 
with modern requirements.

3. Promoting cooperation between educational 
organizations and other subjects of maritime transport 
infrastructure.

4. Creating special departments of professional 
training on the basis of seaports and reinforcement of 
training with real practice.

5. Implementing a work quality control system and 
periodic re-certification of employees.

6. Ensuring presence of clearly formulated general 
educational principles.

7. Ensuring strict compliance with international 
and European requirements in accordance with the 
International Convention on Standards of Training, 
Certification and Watchkeeping for Seafarers 
(“International Convention on Standards of Training, 
Certification and Watchkeeping for Seafarers”, 1978).

8. Facilitating the work of the International Maritime 
Organization (IMO) and the International Labor 
Organization (ILO) with the Ukrainian government 
regarding the fair treatment of seafarers.

9. Promoting cooperation between European 
maritime education institutions and Ukrainian higher 
education institutions to support the competence of 
seafarers at the level of prerequisites for the modern 
development of maritime transport, creating a network 
of centers of excellence in maritime training.

5. Regulatory and legal support
In addition to the main legislative decisions, the 

development and implementation of which will be 
necessary for the implementation of strategic directions 
for the development of MTI, we propose legislative 
measures that deserve special attention:

1. Bringing the Customs Code of Ukraine (“The 
Customs Code of Ukraine”, 2012), other regulations and 
the legal framework of the State Border Guard Service 
of Ukraine in line with the Convention on Facilitation 
of International Maritime Traffic1965 (“Convention on 
Facilitation of International Maritime Traffic”, 1965).

2. Continuation of the forward movement in terms of 
the requirements for ensuring the safety of navigation 
and the categorization of marine transport infra-
structure and vehicles by the competent authorities in 
the field of ensuring maritime transport security.

3. Improvement and harmonization of legislation to 
European standards in the field of safety in maritime 
transport.

4. Harmonization of national legislation in the field 
of natural monopolies (Law of Ukraine “On Natural 



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Monopolies” (Law of Ukraine “On Natural Monopolies”, 
2000)) with the European and international practices 
for the withdrawal of a part of services in sea terminals, 
ports, and does not directly affect the speed of 
commodity and information flows, from under state 
regulation.

5. Legislative strengthening of ensuring the efficiency 
and effectiveness of public-private partnership 
mechanisms in the field of investments in MTI.

6. Improvement and bringing national legislation to 
the standards of international practice in terms of the 

distribution of responsibility between the state and 
entrepreneurship in the field of ensuring safety at the 
operated objects of maritime transport infrastructure 
and vehicles.

7. Legislative consolidation of compliance 
with higher environmental standards, legislative 
and tax incentives for the introduction of energy 
efficient and environmental technologies in port  
activities.

8. Development and adoption at the regional level 
of the Technical Regulations (set of rules, national 

Strategy to increase the competitiveness of the 
Ukrainian MTI in terms of European integration

Monitoring the 
implementation 
of the strategy

Formation 
of tactical 

plans

Control of 
influencing 

factors

IV stage. Implementation of the 
developed measures

V stage. Evaluation of the effectiveness 
of strategy implementation

І stage. Development 
and adoption of the 

MTI Ukraine 
development 
program and 
measures to 

implement the 
strategy

Mega and macro levels

THE MECHANISM OF IMPLEMENTATION OF THE STRATEGY OF 
INCREASING THE COMPETITIVENESS OF THE UKRAINIAN MTI 

O
pe

ra
tin

g 
pl

an
e

Methodological plane

Principles:

consistency / complexity; 
flexibility; strategic importance; 

synergy; congruence; 
integration; innovativeness; 

adaptability; sequence; 
hierarchy.

Functions:
goal setting → planning → 

organization → motivation → 
control → coordination.

Methods: political, administrative, legal, organizational, economic, social.

Institutional:

international conventions; national 
regulations; specialized regulations 

in the field of MTI; subjects of 
public administration of MTI.

Organizational and resource plane 

O
rgani-

zational:

state development strategies; MTI 
development strategies; regional 

MTI development programs.

Finan-
cial :

national budget; local budgets; 
private investment; tranches of 

international organizations.

T
echno-

logical:

technical equipment of seaports; 
quality of service provision; 

scientific and technical potential of 
the country and regions.

Inform
a-

tion:

information resources (SafeSeaNet, 
«Marine single window»); 

communication resources to 
improve performance.

Socio-
econom

ic:

socio-economic situation of the 
state; economic plans; qualification 
of labor resources; staff motivation.

ІІ stage. 
Development and 

adoption of 
regional MTI 
development 
programs of 
Ukraine and 
measures to 

implement the 
strategy

Mesolevel

ІІІ stage. 
Development and 
adoption of local 

development 
programs of 

individual MTI 
entities of Ukraine 
and measures to 
implement the 

strategy

Micro level

Figure. 1. The mechanism for implementing the strategy to increase the competitiveness  
of Ukraine’s maritime transport infrastructure in the context of European integration



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Vol. 1, No. 4, 2020
standards) for the design, construction and operation of 
hydraulic structures.

9. Amendments to the regulatory legal acts “The 
Land Code of Ukraine” (“The Land Code of Ukraine”, 
2001), “The Water Code of Ukraine” (“The Water Code 
of Ukraine”, 1995) and the Law of Ukraine “On Sea 
Ports of Ukraine” (The Law of Ukraine “On Sea Ports 
of Ukraine”, 2012) regarding the lands of the water fund 
occupied by water and water areas of ports in order to 
simplify the registration procedures property rights 
of investors to port infrastructure facilities created on 
the territory of the seaport; facilitation and unification 
of procedures for the creation of artificial land plots 
on water bodies in order to enable and simplify the 
construction of marine infrastructure facilities on the 
lands of the water fund and the prospective development 
of infrastructure.

10. Development and approval of the Law of Ukraine 
“On Clusters”. The adoption of this law should outline 
the following provisions in the legal sphere: definition 
of the concept of “cluster”; types (territorial, functional, 
etc.); goals of interaction of cluster members; cluster 
structures; basic principles of the organization, 
functioning and termination of the cluster; governing 
bodies; interaction with state and local government 
bodies; ownership of property and products or services 
created by the cluster; rights and obligations of cluster 
members; state support for the formation of clusters.

11. Adoption of the Law of Ukraine “On 
Multimodal Transportation”, which regulates the 
“legal and organizational foundations of multimodal 
transportation in Ukraine and is aimed at creating 
conditions for their development and improvement, 
encouraging the use of more environmentally friendly 
modes of transport in order to protect the environment, 
prevent climate change and excessive consumption 
energy” (Draft the Law of Ukraine “On Multimodal 
Transportation”, 2020). This law will promote the 
development of logistics technology “dry ports”.

Note that in the process of implementing the strategy, 
it is necessary to ensure the clarification and revision 
of the list of necessary legislative measures, which will 
reflect the current and already made changes in the 
legislative framework.

6. Organizational support
The mechanism for implementing the strategy pro-

vides for the use of a set of organizational measures 
consists in performing the following management 
functions: organizing actions (events) that are consistent 
with the directions of increasing the competitiveness 
of MTI, laid down in the strategy; motivation of the  
subjects of MTI; organization and implementation 
of planned activities; subsequent control of target 
indicators and production resources for the implemen-
tation of strategy activities; coordination (if necessary) 

of measures of the strategy and their further planning, 
both on the basis of the adjustment carried out, and on 
the basis of taking into account modern trends.

Implementation of the mechanism implies 
coordination of the strategy with the process of 
making, executing and monitoring decisions in the 
executive authorities of Ukraine, as a result, the 
following will be achieved: proper implementation 
of the strategy; ensuring coordination with the main 
adopted state, departmental and regional strategies 
for the development of Ukraine’s MTI; adaptation 
of the strategy to changes in the global and domestic 
macroeconomic conditions, as well as the prompt 
adoption of the necessary decisions on the provision 
of resources for the implementation of activities. We 
offer the following algorithm for the implementation 
of the strategy to improve the management of the 
competitiveness of the Ukraine’s MTI (Figure 2):

1. USPA in the role of an authorized representative 
of the Ministry of Infrastructure of Ukraine in the field 
of port management determines strategic directions 
for increasing the competitiveness of the maritime 
transport infrastructure, which must be consistent 
with the directions of the national transport strategy 
developed by the Ministry of Infrastructure of 
Ukraine.

2. Strategic directions for the development of MTI 
have been developed and submitted for approval to 
the Ministry of Infrastructure of Ukraine. After official 
approval by the Ministry of Infrastructure, the directions 
should be implemented by the Administrations of 
development centers (clusters) of MTI within the 
framework of the agreed resource provision.

3. The administrations of the centers for the 
development of MTI are responsible for the 
implementation of the mechanism for increasing the 
competitiveness of MTI, which must be consistent with 
the directions of state policy in the field of maritime 
transport.

4. Within the framework of the general management 
system, the USPA must annually approve the annual 
and long-term work plans of the seaports, which include 
goals, objectives, targets, specific activities and projects 
that will be implemented, including at their own 
expense.

7. Information and technological support
The formation of conditions for increasing the 

competitiveness of Ukraine’s MTI on an innovative 
basis requires the activation of state policy to strengthen 
the innovation and technological component of state 
development programs, stimulate maritime transport 
companies to innovate, and introduce state support 
for innovative and research projects in the MTI. So, to 
improve information technology support, the following 
tasks should be implemented. 



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1. Formation of a system of intermodal 
and multimodal transportation through the 
implementation of the “dry port” logistics technology.

We propose the creation of a “dry port” near the 
city of Rozdilna in Odesa region at the intersection 
of road and rail International Transport Corridor 
№9 (Helsinki – Vyborg – Saint Petersburg – Pskov –  
Moscow – Kaliningrad – Kyiv – Lyubashivka/
Rozdilna – Chișinău – Bucharest – Dimitrovgrad –  
Alexandroupolis;), as well as the TRACECA transport 
corridor (“Europe – Caucasus – Asia”) and the 
“Viking” combined transport train, which passes 
through the territory of the three states and connects 
a chain of maritime container and piggyback lines of 
the Baltic region with a similar system of the Black, 
Mediterranean and Caspian Seas (freight train running 
on the route Chornomorsk (Ukraine) – Minsk 
(Belarus) – Klaipeda (Lithuania)) (VIKING, 2003). 

The movement of cargo from the seaport to the “dry 
port” can be controlled by implementing electronic 
cargo tracking systems (GSM-GPS navigation 
system (NAVSTAR)), television image recognition 
system, intelligent radio frequency labeling system) 
(Strelnykova, Artemova, 2013).

2. Implementation of joint procedures with the 
EU to ensure the safety of maritime transport, 
monitoring of vessel movements, assistance at sea, 
sea communications, response to ship pollution and 
the creation of a national segment of the SafeSeaNet 
information exchange system for maritime traffic and 
emergencies.

3. Creation of a national system for the exchange 
of information (“Marine Single Window”) on the 
movement of ships and the functioning of business 
entities in the MTI, in particular, through international 
technical and financial assistance.

Implementation of information technology logistics 
systems into the Ukrainian’s MTI, designed to 
integrate all participants of port transport and cargo 
processes into a single information space with the 
ability to provide and access information that is used 
in technological processes of cargo transportation. The 
task of the development of information technology 
logistics is the integration of the Ukrainian MTI into the 
unified transport and logistics network of the European 
Union, increasing the competitiveness of the maritime 
transport infrastructure, forwarding and logistics 
activities.

8. Environmental support
Now the maritime administrations of European 

countries and the European maritime industry are 
making considerable efforts to improve the ecological 
state of shipping. The EU regulatory framework aims 
to cooperate with member states in the prevention of 
accidents and accidents, air emissions, ballast water 
treatment and ship recycling. Thus, the activities of 
the European Commission are focused on achieving 
a long-term plan of “zero waste with zero emissions” 
in the field of maritime transport. Due to the fact 
that Ukraine is striving for European integration, the 

Dunaiskyi

Azovskyi

Mykolaivskyi

Administrations of 
development centers of 

MTI

Odeskyi

Im
pl

em
en

ta
tio

n 
of

 s
tr

at
eg

ic
 

di
re

ct
io

ns
 o

f m
ar

iti
m

e 
tr

an
sp

or
t 

in
fr

as
tr

uc
tu

re
 d

ev
el

op
m

en
t

Pivdennyi,Odesa,
Chornomorsk,

Bilhorod-
Dnistrovskyi.

Mykolaiv, Olvia,
Kherson,

Skadovsk.

Mariupol,
Berdiansk.

Izmail, Reni,
Ust-Dunaisk

MINISTRY OF 
INFRASTRUCTURE OF 

UKRAINE

Approval of strategic 
directions for increasing the 

competitiveness of the 
maritime transport 

infrastructure.

Annual and long-term plans 
for seaports.

USPA

Development of strategic 
directions for increasing the 
competitiveness of maritime 

transport infrastructure.

Figure 2. Algorithm for implementing the strategy to increase the competitiveness  
of Ukraine’s maritime transport infrastructure



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following tasks for environmental protection have 
been identified:

1. To provide sustainable development in achieving 
an integrated and coordinated approach to reducing 
greenhouse gas emissions from shipping, combining 
market, technical and operational measures.

2. To organize cooperation with the IMO to reduce or 
limit greenhouse gas emissions.

3. To achieve “good” ecological status of sea waters 
under EU sovereignty or jurisdiction.

4. To improve the legislation of Ukraine on port 
reception facilities for waste, discarded ships and cargo 
residues, improving the mechanisms for coordinating 
these operations.

5. To encourage the use of alternative energy sources in 
seaports through tax exemptions and the development 
of incentive regulations (e.g., sea wave energy).

6. To increase the effectiveness of Ukraine’s 
participation in the IMO and strengthen international 
cooperation with the EU’s trade and maritime partners, 
ensuring the safety of navigation.

7. To promote the development of the European 
Marine Environmental Safety Management System 
(EMS-MT), which aims to improve the environmental 
performance of maritime transport continuously 
by improving port registration and fees and other 
payments to promote environmentally sound maritime 
transport.

8. To promote the EU strategies to improve ship 
dismantling, the adoption of the IMO convention 
“Hong Kong International Convention for the Safe 
and Environmentally Sound Recycling of Ships 
2009” and continuous progress towards its further 
implementation.

9. Monitor the amendments adopted by the IMO 
in 2005 to Annex VI of MARPOL (“The Hong 
Kong International Convention for the Safe and 
Environmentally Sound Recycling of Ships”, 2009) 
to reduce emissions of sulfur and nitrogen oxides 
from the exhaust gases of ships and the prohibition 
of deliberate emissions of ozone-depleting 
substances, as well as mandatory technical and 
operational measures adopted in 2011 to improve 
energy efficiency aimed at reducing greenhouse gas 
emissions from ships.

The strategic priorities, tasks and tools for the 
implementation of the strategy for increasing 

the competitiveness of Ukraine’s MTI have been 
determined, which guarantee the achievement of the 
main goal of the strategy – ensuring a high level of 
competitiveness of Ukraine’s MTI in the context of 
European integration.

9. Conclusions
Thus, the proposed mechanism for the implementation 

of the strategy for increasing the competitiveness of 
Ukraine’s maritime transport infrastructure in the 
context of European integration will ensure constant, 
efficient, competitive, stable development of Ukraine’s 
maritime transport infrastructure. The improved 
mechanism for implementing the strategy for increasing 
the competitiveness of the Ukraine’s maritime transport 
infrastructure consists of key planes and their elements: 
1) methodological: (political, administrative, legal, 
organizational, economic, social methods; principles: 
consistency and complexity, flexibility, strategic 
importance, synergy, congruence, integration, 
innovation, adaptability, consistency, hierarchy; 
functions: goal setting, planning, organization, 
motivation, control, coordination); 2) organizational 
and resource (institutional, organizational, financial, 
technological, information, socio-economic support); 
3) operating room, including a sequence of stages 
(Stage I. Development and adoption of a development 
program for MTI of Ukraine and measures to 
implement the strategy; Stage II. Development and 
adoption of regional development programs for MTI of 
Ukraine and measures to implement the strategy; Stage 
III. Development and adoption of local development 
programs for individual subjects of objects MIT 
Ukraine and measures to implement the strategy; 
Stage IV. Implementation of the developed measures; 
Stage V. Assessment of the implementation of the 
strategy to increase the competitiveness of Ukraine’s 
MTI). This mechanism will ensure a permanent, 
efficient, competitive, stable development of the 
Ukrainian maritime transport. The implementation of a 
specific strategy is possible through the formation and 
implementation of strategic directions for increasing  
the competitiveness of the Ukrainian maritime  
transport infrastructure, which is aimed at consistent 
integration into the European and world maritime 
transport market.

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