Sea Port Authority signs agreement with Cargill on investment project at Yuzhny port

Ukrainian Sea Port Authority and M.V. Cargo have signed an agreement on the realization of two partnership projects on building a grain terminal at the Yuzhny seaport.

The authority said in a press release that Sea Port Authority Director Andriy Amelin and M.V. Cargo Head Oleksandr Prymak signed the document. Director General of Cargill AT LLC Martin Schuldt, Director General of TIS LLC Andriy Stavnitser, Head of the Yuzhny port's administration Maksym Shyrokov and Grain and Oilseeds Business Head at Cargill Europe Andreas Rickmers and Vice President of Cargill International Rodger Janson also took part in the signing ceremony.

M.V. Cargo acts as a developer and undertakes liabilities to build a marine grain handling terminal and berth 25 at the Yuzhny port. A capacity of the first phase of the terminal will be up to 5 million tonnes. The capacity will be increased by two or four million tonnes during the second project phase.

Sea Port Authority will help to create the navigable operating area of berth 25 and the navigable canal leading to berth 25. Sixteen meters deep dredging work will be carried out.

The approximate cost of investment in building the grain terminal is $104 million.

Dredging work will cost some $50. The funds will be provided by Sea Port Authority. Profile ministries are agreeing the project feasibility study.

Prymak said that budgets of all levels will obtain over UAH 300 million of taxes a year after the completion of the project. Around 350 jobs will be created.

Building of M.V. Cargo grain terminal will finish before September 1, 2018. Sea Port Authority is responsible for completing dredging works before February 1, 2018.

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