Russia. Far Eastern grain handling ambition

21.09.2017

Maxim Kharchenko freight market analyst at "UkrAgroConsult"

Today, there is no specialized terminal for grain handling in the Far East of Russia, and all sea export shipments are carried out through Vladivostok Commercial Sea Port by the direct handling from grain hoppers to vessels.

However, this method has a number of drawbacks: high probability of grain hoppers spoilage, large percentage of damaged grain and low loading efficiency. Already in 2016, the United Grain Company started projecting a terminal in the port of Zarubino in Primorsky Krai, and last week, an order to expand the seaport's boundaries for the giant terminal construction was signed.

Implementation of the first phase of the project will allow handling vessels with a cargo capacity of 91.3 KMT (such as Panamax and Post Panamax), storing grain in silos with a volume of 220 KMT and accepting agricultural commodities both from trucks and from the railway.

According to investors, the grain terminal in Zarubino will become a kind of "window to Asia", agricultural producers will have a new sales channel, and the Far East will receive a powerful stimulus for business development and production growth.

However, despite the wide scale of the project, there is still room for skepticism, UkrAgroConsult believes.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

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