KYIV. Nov 1 (Interfax-Ukraine) – Public joint-stock company State Food-Grain Corporation is mulling the possibility of implementing joint project on modernization of elevators and building a new deep port terminal with China’s CCEC.
The corporation said in a press release on Monday that total investment would preliminary total near $500 million.
Some $25 million will be sent to modernize the Odesa grain terminal. This will help to increase its capacity and reduce expenses on loading of ships. After the modernization the company will be able to service ships of Panamax type, stop loading ships in the harbor and cut the freight cost. The operating capacity of the terminal would expand to 120,000 tonnes. This would allow accumulating cargo for around two ships.
Acting Board Chairman of State Food-Grain Corporation Oleksandr Hryhorovych said that $130 million will be invested in reconstruction of elevators and mills. This would cut production expense by over 35%.
The project envisages construction of new elevators in Kyiv and Vinnytsia regions with a total capacity of 150,000 tonnes.
The investment plan of the corporation includes the creation of additional facilities for grain handling thanks to construction of a new deep port elevators and reconstruction of existing berths. Almost $135 million will be sent to implement the project.
“After the completion of the construction project, the corporation would be able to operate a modern sea terminal with a possibility of loading ships with deadweight of up to 100,000 tonnes and an operation capacity of 300,000 tonnes. This would expand our entire annual grain loading capacity (water transport) to 5 million tonnes,” he said.
Over $160 million will be sent to the project to create own logistics division. It is planned to produce and buy railway grain carriers.
“We seek to buy almost 3,000 wagons. They would meet the corporation’s needs in shipping grain, reduce our operating expenses and minimize risks of a shortage of Ukrzaliznytsia’s wagons we see now,” he added.
