MYKOLAIV, UKRAINE — Nibulon, one of Ukraine’s largest grain exporters, announced on May 29 the implementation of a large-scale modernization of its grain elevator network.

The company said the changes will affect the entire network in terms of automation, unification of services and mechanisms to ensure quality standards. Additionally, storage capacities will be expanded at its Khmilnyk branch in the Vinnytsia region, and at AK Vradiivskyi Ltd., the Kolosivskyi elevator, and the company’s transshipment terminal in the Mykolaiv region.

“The elevator sector is the heart of agribusiness, and the fate of the grain heading for export depends on its proper operation,” said Valeriy Reutsoi, director for elevator operations at Nibulon. “Only honest and transparent partnerships produce results: volumes are growing. We need to invest in modernization, progress, and raise the level of services so that all processes run smoothly, optimally in terms of time and effort.”

At Khmilnyk, where total investments will be $3.9 million, new transport equipment will be installed and four operational silos built, Nibulon said.

Investments in the first stage of modernization of AK Vradiivskyi Ltd. will amount to $800,000, the company said. The capacity will be doubled, and the receipts and shipments scheme will be changed to work with several crops simultaneously, reducing waiting times for agricultural producers.

Nibulon said $265,000 is allocated for the reconstruction of the Kolosivskyi elevator, which will double the productivity of grain receipts and shipments.

The company will invest $720,000 in its transshipment terminal in Mykolaiv to construct a new gallery, which will enable receipts of cargoes from water transport and their transshipment onto rail transport with subsequent delivery to the Bessarabska branch. In the face of the blockade of the Mykolaiv port hub by Russian forces, this will reduce logistics costs for shipments to the Izmail ports, Nibulon noted.

Nibulon is among the 20 largest companies in Ukraine. Prior to the Russian invasion in February 2022, Nibulon was exporting nearly 4 million tonnes of grain per year. After seeing exports plummet in the early stages of the war, Nibulon’s shipments have rebounded, and the company said that exports for the current marketing year are expected to be between 3.2 million and 3.4 million tonnes.

“Nibulon is demonstrating a recovery in export volumes during 2022-2024 and is regaining market share,” the company said. “This is becoming possible thanks to the development of alternative channels through a Danube port and the effective use of opportunities of the Black Sea ports.”

Vladimir Slavinsky, commercial manager at Nibulon, noted that the Danube River “continues to play a key role for our exports,” accounting for 70% of sales.

Oleksiy Vadatursky, the longtime owner and CEO of Nibulon, was killed on July 31, 2022, in his home during a bombing of Mykolaiv by Russian forces. His wife, Raisa Vadatursky, also was killed. Following the tragic event, their son,Andriy Vadatursky, assumed leadershipof the company.