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The grain terminal MV Cargo in Pivdenny sea port was solemnly opened

06 September 2019, 17:15

The grain terminal MV Cargo in Pivdenny sea port was solemnly opened

The solemn opening of the grain terminal MV Cargo in Pivdenny sea port was held on Friday. The reporter of the Ports of Ukraine tells about this.

The solemn opening accounted for 1300 visitors.

The grain terminal has been named Neptune as was announced during the events.

‘That was the most difficult project out of seven we have built. Thousand construction days and two years of preparation. However we are proud of our work — construction of the most engineering port terminal.’ admitted during the events Andrey Stavnitser, the co-owner of MV Cargo.

‘It was important for us to find a reliable partner in Ukraine. And we are pleased with the result (...) Ukraine is a very important part of the global food supply. Moreover, Ukraine will become the largest corn exporter in the world very soon. Our company is trying to connect manufacturers and end users,’ said Roger Janson, Vice President at Cargill.

According to him, Cargill plans to develop business in Ukraine. ‘In the domestic market we’ll deal with feed and livestock. The terminal infrastructure will be our gateway to the global market. Our task is to create the largest capacities in the Black Sea,’ added Janson.

According to Philippe Grushko, Business Development Director at MV Cargo, the terminal is currently cooperating with four clients.

Stavnitser announced earlier that the official opening of the MV Cargo terminal will take place on 6 September 2019. ‘We decided to combine this event with another important one — the TIS twenty-fifth anniversary,’  Stavnitser said within the IV GRAIN UKRAINE International Grain Conference held in Odessa in May.

The terminal began to work in test mode in summer 2018. Since working in test mode as of 26 March 2019, the terminal processed its first million tons of grain. In November 2018, the terminal began test loading of the first line of silos.

MV Cargo started construction of a grain terminal in Pivdenny sea port in March 2016. The annual capacity of the terminal is 5 million tons. The complex includes 14 silos with capacity of 15 thousand tons and on-the-floor warehouse for grain with capacity of 80 thousand tons. The terminal is equipped with its own railway and automobile infrastructure. The car unloading station is capable of passing 790 cars per day, while the railcar unloading station — 256 railcars per day.

The total declared cost of the terminal construction amounted USD150 million. The European Bank for Reconstruction and Development along with International Finance Corporation have provided loans for USD37 million to implement the project. Thus, the total pool of debt financing of the project amounted to USD74 million.

According to MV Cargo, the operation of the terminal will provide Ukraine with not less than UAH600 million of payments to the budgets and about USD8 million of port charges every year.

In August 2015, the global commodity trader Cargill, MV Cargo and the State Enterprise Ukrainian Sea Ports Authority (USPA) signed a triple memorandum related to intention of implementation an investment project for the grain terminal construction in Pivdenny sea port. According to the project, MV Cargo shall construct a ground-type terminal complex, while USPA will ensure creation of shipping operational water area of berth No. 25 as well as shipping approach channel to berth No. 25. The memorandum has committed the Cargill's intention to purchase about 51% of the terminal.

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