Cargill and MV Cargo agree to invest $100m to build grain terminal in Ukraine
Cargill and MV Cargo have signed a share purchase agreement to build a grain terminal in the port Yuzhni, Ukraine, and have agreed to invest $100m in the project.
The new deep-water terminal in Yuzhni will provide passage to Ukraine's surplus agricultural produce to the global market's demand.
The deal will see MV Cargo constructing the new facility in the Ukraine port.
Cargill Europe grains and oilseeds business head Andreas Rickmers said: "Through this investment Ukraine's port infrastructure will be expanded and will provide greater efficiencies to connect Ukraine's surplus agricultural crops with the parts of the world demanding more food.
"This new port will benefit Ukrainian farmers, the overall economy and global food security.
"It will add to our footprint of port facilities in the Black Sea region and confirms our intention to keep investing in Ukraine's agricultural sector."
MV Cargo representative Andrey Stavnitser stated that the deep-water terminal will facilitate processing high tonnage vessels to export the Ukrainian grains to the global market.
He further stated that the project is expected to result over UAH300m ($11m) in tax payments annually and generate about 350 employment opportunities.
The construction of the terminal is scheduled to begin this month and is expected to be completed in 2018.
The current agreement is said to follow the memorandum of cooperation inked by both the firms with Ukraine's Sea Ports Authority (USPA) in August, 2015, according to which the port authority agreed to dredge the water area adjacent to the future grain terminal down to 16m which would facilitate the passage of vessels with heavier tonnage.
Image: An image of a Ukrainian port on the Black sea. Photo: courtesy of DmitrOst.