The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to US$60 million to Brooklyn-Kiev LLC, a company that is developing a grain trans-shipment terminal in the Port of Odessa in Ukraine.
Ukraine's leading stevedoring companies Brooklyn-Kiev was founded in 1992 and at present operates 6 berths within the Odessa Commercial Sea Port handling 6 million metric tons of grain, steel, sugar containerized cargoes per year.
The project, with an anticipated annual throughput capacity of up to 4.5 million tonnes of grain, will be implemented jointly with Louis Dreyfus Commodities, a global leader in agribusiness, according to an agreement signed by the two companies. The agreement intends to establish a joint venture for the development and management of the terminal and related activities.
The tender process for the project was launched on 25 October 2013.
The grain terminal (designed for 240 tons of simultaneous grain storage) will be one of the most advanced terminals at the Black Sea. Total project cost is estimated at US$125 million.
Due to record grain harvests in Ukraine in recent years (around 60 million tonnes in 2013) the country is becoming an important global grain supplier. In this regard the EBRD is paying special attention to the development of port grain terminals, which handle over 95% of grain exports from Ukraine.
The Port of Odessa is the largest Ukrainian seaport and one of the largest ports in the Black Sea basin, with a total annual traffic capacity of 40 million tonnes (15 million tonnes dry bulk and 25 million tonnes liquid bulk). The port has an immediate access to railways. Port of Odessa is a major freight and passenger transportation hub of Ukraine.
Sevki Acuner, EBRD Director for Ukraine, stated:
We know how important the agribusiness sector is for the economy of this country. The Bank is very pleased to support this venture, which is the product of a partnership between a major international commodity trader and a leading local stevedoring operator. It demonstrates that foreign and local investors have confidence in the sector and in Ukraine.
Sue Barrett, EBRD Director, Transport commented:
The project forms part of the EBRD's intensified efforts in Ukraine aimed at supporting the real sector of the domestic economy. This year, the Bank expects to be able to invest around €1 billion in the country, with the annual level of investment since February 2014 now standing at €500 million.
The project has both regional and national significance. This investment will strengthen Odessa's position as a major grain handling hub and support economic growth in Ukraine. It is part of the EBRD's strategy to support integrated transport solutions in the countries where we work.
The EBRD is the largest financial investor in Ukraine. As of the end of July 2014 the Bank has committed €9.2 billion (US$ 12.3 billion) through 329 projects in the country.