Louis Dreyfus attracted a loan for development of railway business in Ukraine
05 September 2019, 11:56
The European Bank for Reconstruction and Development (the EBRD) has granted Louis Dreyfus Company (LDC), an agricultural trader, USD 35 million loan to develop its own railway logistics business in Ukraine. It was reported by press service of the EBRD.
‘The proceeds will be used to procure up to 1 thousand grain wagons greatly facilitating the company's logistics activities in the field of grain processing. LDC will be able to diversify its means of grain transportation from agricultural regions of Ukraine to ports. New railway wagons will decrease the amount of grain transported by truck haulage, and owing to this, will help to reduce the annual volume of carbon dioxide emissions by 8,510 tons’, reads the statement.
The press service stated that Ukraine is becoming an increasingly important player in the global grain market. A new joint project of the EBRD and Louis Dreyfus should strengthen this trend.
Global agricultural trader LDC intends to set up its own railway logistics business in Ukraine.
In July 2019, the EBRD agreed upon a loan of up to USD 35 million to finance the procurement of up to 1 thousand grain wagons by LDC subsidiary in Ukraine
Since 2012, LDC and Brooklyn-Kiev LLC have been jointly implementing a project for construction of the new grain transshipment complex in Odesa Sea Port with an annual capacity of 4.5 million tons. The total project cost is USD 100 million.
In November 2018, Chairman of the Supervisory Board of Louis Dreyfus Holding B.V., Margarita Louis-Dreyfus, visited Ukraine. During her visit, the head of the company stated that the trader intends to increase significantly investment in Ukraine in the coming years.
In September 2018, LDC and Brooklyn-Kiev LLC began mutual operation of the first batch of new grain wagons.
Louis Dreyfus Company (headquarters - Amsterdam, the Netherlands) specializes in the sale of agricultural products and fertilizers. It controls about 10% of the global commodity trade. It is one of the four largest agricultural traders in the world - the so-called ABCD (ADM, Bunge, Cargill, Louis Dreyfus). In 2018, the company increased its net profit compared to 2017 by 12% - up to USD 355 million.
LDC has been operating in Ukraine since 1998. It is one of the largest agricultural exporters from Ukraine annually supplying about 4 million tons of grain to foreign markets.