One of the largest grain market operators in Ukraine, Nibulon JV LLC (Mykolaiv), is launching a large-scale modernization of its elevator business, which will include automation, unification of services and mechanisms to ensure quality standards, the grain trader’s press service reported on Facebook.
“Additionally, the capacities of Khmilnyk, Vradiyevsky, Kolosivsky elevator and Transshipment Terminal branches will be significantly expanded,” the company said in a statement on Wednesday.
According to the grain trader, the second stage of the elevator will be built at the Khmilnyk branch (Vinnytsia region), where the total investment will amount to $3.9 million, and will be equipped with four new tanks and transportation equipment. In addition, two STRAHL grain dryers will be installed to increase the drying capacity to 2200 tons per day (from scratch) to attract agricultural producers to cooperate. Previously, this branch served the needs of Nibulon’s own agricultural production exclusively.
Investments in the modernization of Vradiyivskyi (Mykolaiv region) will amount to $800,000. The company will double its capacity and change the scheme of acceptance and shipment, which will allow it to work with several crops at the same time and reduce waiting time for the grain trader’s partners.
“Kolosivskyi elevator (Mykolaiv region) will also get a second wind, with the company allocating $265 thousand for the reconstruction of the first stage. The focus is to double the productivity of grain receiving and shipping,” the agricultural holding said.
In addition, the transshipment terminal in Mykolaiv will receive $720 thousand in investments to build a new gallery that will allow it to receive cargo from water transport and transfer it to rail transport and then to the Bessarabian branch. With Mykolaiv port hub blocked, this will help reduce logistics costs on the way to Izmail ports.
“We are planning to automate all elevators and equip them with sensors that will record the service life of the equipment and automatically transfer this data to a single control center. As a result, we expect to increase the efficiency of the elevator business through optimization and automation, reduce the cost of services through the rational use of resources and increase salaries for the branch teams,” Nibulon summarized.
Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries. In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.
Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.
