Ukraine. Growth of handling capacities amid exports stagnation

05.05.2017

In recent years a surge of interest in construction and development of grain handling has been noted against the backdrop of high gross crop and reduction in flows of other cargo types in Ukrainian ports.

In 2016 grain exports reached 38.3 MMT. It’s obvious that existing handling capacities should be enough. Nevertheless, last year three large grain terminals were put into operation: COFCO in Nikolayev with a capacity of 2.5 MMT, Bunge with a capacity of 1 MMT and Risoil in Chernomorsk with a capacity of 2.2 MMT.

Despite existing surplus of grain handling capacities, grain market participants are still interested in developing facilities for grain handling in ports and building their own logistics chains. Currently there are announcements in the market from several companies, including Allseeds, Cargill, Kernel, SFGCU, etc. about their intention to build new grain-handling capacities in Ukrainian seaports.

In case of announced projects implementation, before 2020 theoretical capacities of Ukrainian ports for grain handling may increase by 29.6 MMT, while storage capacities - by 1236 KMT. Some of these projects have not come out of the "paper stage" yet, but even now one can say that, if the projects under construction are implemented, then the competition between terminals will significantly strengthen before 2020, UkrAgroConsult notes.

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

You can get more information about grain handling capacities in Ukrainian ports, trends in industry development, as well as peculiarities of grain handling in UkrAgroConsult’s study.

 

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