Bunge invests USD 180 million in Mykolaiv seaport

Investing in Ukraine: Bunge invests USD 180 million in Mykolaiv seaport

This article discusses the recent #investment of #Bunge into building of a #handling complex and #modernization of #Mykolaiv #seaport.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.

Bunge transnational company invested USD 180 million in construction of a handling complex with an oilseed refinery, an oil handling terminal and the expanded grain terminal within Mykolaiv seaport. Following construction of the new complex, the volume of cargo handling at the port is expected to increase to 1 million tonnes. This investment is regarded as one of the largest in the agriculture sector of Ukraine in the recent years.

We note that earlier Cargill and the Administration of Sea Ports of Ukraine successfully negotiated the terms and conditions of construction of the new grain terminal at the sea port of Yuznii (Odesa region), which resulted in signing of the appropriate agreement. Under the terms of the agreement, the Administration of Sea Ports of Ukraine is obliged to construct water area with proper dredging (up to 16 meters) near the terminal. The first facility of the terminal will have an annual loading capacity of 5 million tonnes of grain and other commodities. The second facility will increase loading capacity by 2-4 million tonnes annually. The approximate sum of Cargill’s investment in construction amounts to USD 104 million. Expenses of the Administration of Sea Ports of Ukraine on dredging works will amount to approximately USD 50 million. As specified in the agreement, the first facility of the grain terminal will be constructed by 1 September 2018, while all dredging works shall be completed no later than 1 February 2018.

In addition, Molino, a Turkish company established in 1965, proposed to build a modern grain terminal in Odesa, which will allow loading two panamax class cargo ships simultaneously. This will make it possible for a cargo ship to be loaded within one day, rather than in almost one week, which is the current state of affairs at most of the Ukrainian ports. The required territory for implementation of the project is 170 thousand sq. m., the planned investment is USD 150 million.

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