IFC LOAN TO SUPPORT NEW GRAIN TERMINAL AT BLACK SEA PORT
The new terminal at the Port of Yuzhny is expected to help Ukraine to boost its agricultural exports
Partners include Cargill & European Bank for Reconstruction and Development (EBRD)
Eric Schroeder, World-Grain.com, Kansas City, MO, April 6, 2017
KYIV, UKRAINE — International Finance Corporation (IFC), a member of the World Bank Group, is providing a $37 million loan to MV Cargo to support the construction of a new grain terminal at the Black Sea port of Yuzhny. The new terminal is expected to help Ukraine to boost its agricultural exports and contribute to global food security, according to the IFC.
The $37 million loan will be used to build a terminal capable of handling up to 5 million tonnes of grain annually. In addition to IFC, other partners in the project include Cargill and the European Bank for Reconstruction and Development [EBRD]. The total project costs are estimated at about $150 million, the IFC said.
“We have already started the construction works at the Yuzhny port,” said Andrii Stavnitzer, co-owner of MV Cargo. “Our plan is to have the new grain terminal operational by spring 2018. The works include the development of rail infrastructure and dredging works. The deep water port capacities are essential to boost Ukrainian grain exports further. Actually, it is one of the largest recent investments in Ukraine.”
Elena Voloshina, IFC’s acting country manager for Ukraine and Belarus, said, “This project is key to helping Ukraine improve its export competitiveness, support foreign currency inflows, and reduce logistics costs for exporters. It is also a part of IFC’s broader work to help Ukraine realize the potential of its agribusiness sector.”
MV Cargo is a Ukrainian company set up to implement the grain terminal project at the Black Sea port of Yuzhny, near Odessa. By March 2017, the project was 40% complete and had received more than $30 million in investments.
NOTE: Cargill is a long-time member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.USUBC.org.