On April 19, representatives of the USAID’s Economic Resilience Activity (ERA) – Timothy Madigan, Chief of Party, and Cameron Berkuti, Border Crossing Points Director – participated in an intergovernmental presentation of the master plan for the Ukrainian-Romanian strategy for border infrastructure.  

The presentation was attended by Serhiy Derkach, First Deputy Minister for Communities, Territories, and Infrastructure Development of Ukraine, and Mustafa Nayyem, Head of the Agency for Restoration, and partners from Romania, including Dorel Fronia, strategic advisor on customs policy at the EU Advisory Mission Ukraine, and Irinel Ionel Scriosteanu, State Secretary of the Ministry of Transport and Infrastructure of Romania. Representatives of both countries’ State Customs and Border Guard services were also there. 

While the master plan covers 14 border crossing points (BCPs), six of them are located in Bukovyna, a transitional land between Ukraine and Romania, which is of strategic importance. The plan involves the construction of new BCPs, as well as the modernization of existing BCPs on the Ukrainian – Romanian border. The Romanian side also plans to build rail connections to the Ukrainian – Romanian border to further boost cargo export and import operations between Ukraine and the European Union (EU). 

Overall, the master plan aims to increase trade turnover and passenger traffic between Ukraine and the EU. In Bukovyna, the plan identifies Porubne-Siret and Bila Krynytsia-Klimeuts BCPs as high priority, Dyakivtsi-Rakovets and Krasnoilsk-Vicovu de Sousse BCPs as medium priority, and Shepit-Izvorele Sucevei and Ruska-Ulma BCPs as lower priority. USAID ERA is already working on three of these, which are Porubne, Diakivtsi, and Krasnoilsk. 

“The USAID Economic Resilience Activity is working with the Ministry for Communities, Territories, and Infrastructure Development, and the Agency for Restoration, to improve services and working conditions at Ukraine’s western border crossing points, including with Romania. We are targeting 42 crossing points to deliver different levels of support, ranging from short term to long term, to increase their capacity. It is vital that we synergize our efforts with the various stakeholders to ensure that we deliver results efficiently, which is why participation in this presentation is so important. The next step is to continue to look for opportunities for close cooperation with all stakeholders present here today and beyond,” said Timothy Madigan, ERA Chief of Party. 

“Modernization of the border crossing points is an important task for us, as it will speed up the movement of goods and make it more comfortable for drivers and passengers. We are grateful to USAID and the American people for their continued and comprehensive support of Ukraine and the Agency for Restoration in particular,” said Mustafa Nayyem, Head of the State Agency for Restoration and Infrastructure Development of Ukraine. 

Background: USAID’s Economic Resilience Activity (ERA) is one of USAID’s core partners implementing the $350 million Agriculture Resilience Initiative – Ukraine (AGRI-Ukraine) that was established in 2022 to bolster Ukrainian agricultural exports and alleviate the global food security crisis exacerbated by the war. Under AGRI-Ukraine, ERA partners with public and private companies to complement and leverage urgently needed grain transportation and transshipment investments.  

ERA also directly supports the Government of Ukraine, including the Ministry for Restoration (MoR), the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), the State Customs Service, and Ukrainian Railways, to upgrade 42 of Ukraine’s border crossing points (BCPs). Modern and more efficient border infrastructure and customs procedures will reduce export costs and increase export capacity, enabling Ukraine to scale trade and advance its path to EU integration. 

 Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million, through memorandums of understanding  with the Ministry for Restoration , State Agency for Restoration and Development of Infrastructure of Ukraine, Ukrainian Railways and State Customs Service, to support upgrading of border crossing points (BCPs) to improve grain trade and export volumes, and other critical infrastructure. 

“Ministry for Communities, Territories, and Infrastructure Development is working to increase export routes and develop transport links between Ukraine and the European Union. In cooperation with USAID ERA, work is already underway on the border crossing points, which includes the necessary modernization of both the checkpoints and the related infrastructure. Stable and regular exports contribute to the economic recovery of Ukraine, and thus the defense capability of our country,” commented Oleksandr Kubrakov, Vice Prime Minister for Restoration of Ukraine, Minister of Communities, Territories and Infrastructure of Ukraine.

“USAID ERA is working on upgrading 42 border crossing points on Ukraine’s western borders, which include railway and road BCPs, and we have already visited 20 roads and 7 railway BCPs as part of these efforts. These priority BCPs are crucial for Ukrainian exports and require improvement to create new export routes. We started with the rapid upgrade of the highest priority BCPs, i.e., we commenced with what could be replaced quickly, ordering products or services from Ukrainian manufacturers and contractors and facilitating exports already. At the same time, we signed a contract with Miyamoto International Ukraine, which is working on the design for the reconstruction of old cargo terminals and the construction of new cargo terminals at several BCPs. After 8 months of work, I’m proud to say that we have good results to show.”– Cameron Berkuti, ERA Border Crossing Point (BCP) Director.

USAID ERA contractor Artmetal Ukraine has completed the installation of a total of 33 modular structures or prefabricated buildings (prefabs) at four high-priority road BCPs. In the Volyn region, bordering Poland, 10 prefabs (4 sanitary modules and 6 offices) were installed. Ten (2 restrooms, 4 administrative buildings, and 4 offices), and 11 (7 offices, 3 passport control facilities, and 1 canopy for weighing scales) were installed at two BCPs in the Zakarpattia region on the border with Slovakia and Hungary, respectively. In the Chernivtsi region, two prefabs were installed for use as restrooms. Each module is fully insulated, furnished, equipped with HVAC systems, and connected to utilities – electricity, water, and network – providing good working conditions to the State Customs and Border Guard Services of Ukraine, and comfortable restroom facilities for travelers. 

“A total of 29 state border crossing points are under the responsibility of the Agency for Restoration. Their modernization is an important task, as it will allow us to speed up the movement of cargo, as well as make the movement of drivers and passengers more comfortable. We are grateful to USAID and the American people for their sustained and comprehensive support of Ukraine and the Agency for Restoration in particular,” said Mustafa Nayyem, Head of the Agency for Restoration. 

Simultaneously, USAID ERA contractors have begun repairing damaged pavements, stormwater slotted drains, and canopy cover over the checkpoints, painting the rail barriers and metal fence, replacement of traffic lane lines, markings, and traffic signs, replacing lighting systems to improve safety and security at these four priority BCPs.  

These BCPs, as well as several others, also received various small-scale installations, such as water-filled road barricades, recycling trash bins, and one-ton commodity scales.  

At six priority BCPs, 12 mobile dynamic vehicle scales have been installed, which can be easily moved to the places where they are most needed at the BCPs, minimizing the need to redirect trucks to stationary weighing stations. They are vital and versatile equipment that can be used for various vehicles and cargoes, providing flexibility in handling different weighing requirements. 

By the end of May 2024, USAID ERA will complete the improvement of lighting systems at 17 road and rail BCPs. The work involves installing a total of 875 lamps, 310 of which have been installed at six BCPs so far in 2024. In December 2023, 479 LED lamps were installed at two BCPs, significantly boosting illumination at nighttime and enhancing security. 

To meet UZ’s needs, USAID ERA delivered a total of 103 ICT equipment and other supporting materials, which include multifunctional devices (MFD), printers, laptops, computers, notebooks, and uninterruptible power supplies (UPS), as well as installed four 50-KW diesel generators at four rail BCPs located in the Volyn, Lviv, Zakarpattia, and Chernivtsi regions. This will ensure the continuity of daily operations during power outages and speed up the processing of shipping documents, including when transporting grain cargo abroad.    

At the BCP in the Chernivtsi region, the installation of the three sets of three bogie exchange lifts each has been completed, which has the capacity to lift wagons weighing over 100 tons. These jacks are an effective way to replace bogies with wide gauge wheelsets (1,535 mm) with European gauge wheelsets (1,420 mm) and vice versa, which contributes to the accuracy of technological processes related to the rearrangement of cars and, accordingly, to the efficiency of cargo transportation by rail between Ukraine and the European Union. 

“The logistics and export of grain and other essential agro-commodities from Ukraine under the current conditions are a challenge for the state, agribusinesses, and farmers. USAID’s ERA stands with Ukraine’s government and people, providing vital support that helps advance Ukraine’s economy because robust, dynamic, and inclusive economic recovery is critical to Ukraine’s future. At ERA, we believe supporting critical infrastructure such as border crossing points is vital to these economic recovery efforts.” – says Timothy Madigan, ERA Chief of Party.

Background: USAID’s Economic Resilience Activity (ERA) is one of USAID’s core partners implementing the $350 million Agriculture Resilience Initiative – Ukraine (AGRI-Ukraine) that was established in 2022 to bolster Ukrainian agricultural exports and alleviate the global food security crisis exacerbated by the war. Under AGRI-Ukraine, ERA partners with public and private companies to complement and leverage urgently needed grain transportation and transshipment investments. 

ERA also directly supports the Government of Ukraine, including the Ministry for Restoration (MoR), the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), the State Customs Service, and Ukrainian Railways, to upgrade 42 of Ukraine’s border crossing points (BCPs). Modern and more efficient border infrastructure and customs procedures will reduce export costs and increase export capacity, enabling Ukraine to scale trade and advance its path to EU integration. 

USAID Economic Resilience Activity (ERA) contractor, “TRADING HOUSE” MASHSERVIS” LTD, has completed the installation a total of 12 bogie exchange lifts (3 sets of 4 pieces), at the rail border crossing point (BCP) in Chernivtsi Oblast on the Ukrainian-Romanian border, operated by Ukrzaliznytsia (UZ).

The bogie exchange lifts are an efficient way to change wheel bogies to move trains and wagons from the wider gauges (1,520 mm) to standard gauges (1,435 mm) and vice versa. Each set of four lifts has the capacity to lift railcars weighing more than 100 tons. The use of the new lifts contributes to the precision of technological processes related to the rearrangement of cars and, accordingly, to the efficiency of rail freight transportation between Ukraine and the European Union.

During May and June 2024, the USAID ERA contractor will install an additional 20 lifts at the rail BCP in Lviv Oblast, on the border with Poland.

The lifts are supplied by “TRADING HOUSE” MASHSERVIS” LTD (the actual manufacturer of the lifts is a subsidiary of Plasma Company LLC), a leading Ukrainian company based in Kharkiv that manufactures and supplies equipment for Ukraine and Europe, which won the USAID ERA competitive tender. Prior to Russia’s full-scale invasion of Ukraine on February 24, 2022, the company sold 50% of its equipment on the domestic market and exported 50%. For now, “TRADING HOUSE” MASHSERVIS” LTD, sells 80% of its products on the domestic market and exports 20%.

“TRADING HOUSE” MASHSERVIS” LTD ensures high quality standards through the ISO 9001 quality management system and complies with international safety and sustainability standards. The company’s products also comply with such standards as technical specifications and the State standards of Ukraine. As such, their supply and installation of these high-standard lifts will ensure that these essential cargo-handling equipment continues to serve the economy of Ukraine for many years to come.

Background: Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million to support the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), Ukrainian Railways (UZ), and State Customs Services, to upgrade border crossing points (BCPs) to improve grain trade and export volumes. 

USAID’s Economic Resilience Activity (USAID ERA) has provided 103 pieces of ICT equipment to four rail border crossing points (BCPs) located in Volyn, Lviv, Zakarpattia, and Chernivtsi Oblasts, operated by JSC Ukrzaliznytsia (UZ). The ICT equipment and supplies, which have all since been put into operation, include printers, laptops, monobloc computers, and uninterruptible power supplies (UPS). 

They will increase the BCPs’ capacity for processing cargo movement, and will greatly enhance the day-to-day operations of the BCP and the positive experience of its users. To ensure cargo movement continues during power shutdowns, ERA also provided these BCPs with 50kw generators. This assistance is aimed at increasing the efficiency and accessibility of logistics routes for the export of Ukrainian goods. Improving logistics processes not only optimizes the rail’s operations, but also facilitates more efficient exports of Ukrainian goods, including grain, which is vital for boosting Ukraine’s economy and global food security. 

Background: Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million to support the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), Ukrainian Railways (UZ), and State Customs Services, to upgrade border crossing points (BCPs) to improve grain trade and export volumes.  

Subcontractors for USAID’s Economic Resilience Activity (ERA) have begun pavement repair and miscellaneous improvement work at a key road border crossing point (BCP) in Volyn Oblast on Ukraine’s border with Poland. Later in March, work will also begin at two BCPs in Zakarpattia Oblast and one BCP in Chernivtsi Oblast on Ukraine’s borders with Hungary, Slovakia, and Romania. The work involves repairing damaged pavements, stormwater slotted drains, and canopy cover over the checkpoints, and painting the barriers and metal fence, placement of traffic lane lines and markings, and replacing security fences. 

Earlier this year, the USAID ERA partially replaced old modular buildings at four priority BCPs, some of which will be used as offices for employees of the State Customs and Border Guard Services of Ukraine. Road signs have been replaced, water barricades and waste sorting bins and commercial scales have been installed at some of the BCPs to speed up customs procedures. 

The USAID ERA support is aimed at improving the infrastructure of the BCPs to ensure their stable and efficient operations. Improved border conditions and functionality will positively impact the experience at the BCPs, including improving the border crossing experience of drivers and companies engaged in international trade.

Background: Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million to support the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), Ukrainian Railways (UZ), and State Customs Services, to upgrade border crossing points (BCPs) to improve grain trade and export volumes.