Louis Dreyfus Company opens first grain terminal in Russia

03.05.2017

Louis Dreyfus Company Vostok LLC opened a grain terminal in Russia’s Rostov region, completed in partnership with the European Bank for Reconstruction and Development (EBRD). The terminal is located on a 20-hectare land plot in the Azov district on the river Don, and includes two berths and 10 silos with a total storage capacity of 50,000 tonnes. It will be used for the transshipment of grains on sea-river vessels with an initial annual export capacity of 800,000 tonnes, aiming to exceed 1 million tonnes over time.

“Historically, Russia has been a country of particular significance for our group, which has been active here since 1864,” said Margarita Louis-Dreyfus, chairperson of Louis Dreyfus Holding B.V. “With its grains production now exceeding 100 million tonnes annually, it is one of the leading producers and exporters of wheat and barley globally, with excellent potential for further growth. We are convinced that Russia will remain a dominant player in the global agricultural markets, and we have been reinforcing our presence through continuous investment in several grain assets over the past 10 years.”

The opening of the new terminal is on cue with the company’s new growth plan. It focuses on optimizing its organizational model, asset network and increasing the company’s business portfolio.

“This means that we increasingly concentrate on highly selective, strategic investments that will facilitate future growth and profitability,” said Ramírez Martiarena, chief executive officer (CEO) of the Louis Dreyfus Co. (LDC) during a call with analysts about LDC’s earnings on April 4. “We continue to work for greater regional integration to increase synergies and reduce operational costs.”

“Adding logistic and export capacity with this terminal, strategically located on the Don river and well connected to the farm gate, will help us to serve our customers around the world more efficiently,” said David Ohayon, senior head of grains and value chain platforms and head of the Europe, Middle East & Africa Region at LDC. “The Azov facility is LDC’s first grain terminal in Russia, alongside our five offices and 10 inland silos, and brings our total storage capacity in the country to over 1 million tonnes.”

The acquisition of the Azov terminal was preceded by the signing of a memorandum of cooperation in June 2015 at the St. Petersburg International Economic Forum between the Governor of the Rostov Region, Vasily Golubev, and Margarita Louis-Dreyfus. The project was supported throughout its development by the Rostov region’s Investment Promotion Agency.


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