European Bank providing loan for Ukraine port
July 31, 2014
by World Grain Staff
ODESSA, UKRAINE — The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $60 million to Brooklyn-Kiev LLC, for development of a grain trans-shipment terminal in the Port of Odessa with an anticipated annual throughput capacity of up to 4.5 million tonnes of grain.
“We know how important the agribusiness sector is for the economy of this country. The bank is very pleased to support this venture, which is the product of a partnership between a major international commodity trader and a leading local stevedoring operator,” said Sevki Acuner, EBRD director for Ukraine. “It demonstrates that foreign and local investors have confidence in the sector and in Ukraine.”
Louis Dreyfus Commodities Suisse SA, a wholly owned subsidiary of Louis Dreyfus Commodities, and Brooklyn Kiev LLC in October 2013 entered into an agreement to establish a joint venture for the development and management of a multi-commodity terminal in the Port of Odessa, Ukraine.
In addition to addressing the shortage of modern, deep-water port grain trans-shipment capacity in Ukraine, the terminal will benefit the region by creating jobs and increasing economic activity in the Port of Odessa area.
The modern facility is located on the base of berth number 1 with a berth length of 254 meters and a depth of 12.5 meters. It includes three storage silos with a total capacity of 241,000 tonnes; unloading station wagons with discharge of 1,000 tonnes per hour (tph); car unloading station in two directions with discharge of 500 tph; automatic weighing; laboratory quality grain cargo with mechanized remote sampling from vehicles; and ship-car capacity of 1,500 tph.
Due to record grain harvests in Ukraine in recent years (around 60 million tonnes in 2013) the country is becoming an important global grain supplier. In this regard the EBRD is paying special attention to the development of port grain terminals, which handle over 95% of grain exports from Ukraine.
“The project has both regional and national significance. This investment will strengthen Odessa’s position as a major grain handling hub and support economic growth in Ukraine,” said Sue Barrett, EBRD director, Transport. “It is part of the EBRD’s strategy to support integrated transport solutions in the countries where we work.”
The project forms part of the EBRD’s intensified efforts in Ukraine aimed at supporting the real sector of the domestic economy. This year, the bank expects to be able to invest around €1 billion in the country, with the annual level of investment since February 2014 now standing at €500 million.