Bunge To Implement Third Phase Of Investment Project In Mykolaiv Port, Memorandum Signed

01 September 2017 22:42

The Bunge company intends to implement the next phase of its investment project in the Mykolaiv seaport. Bunge, the Ukrainian Seaports Authority, and the state-owned Mykolaiv Commercial Seaport signed the relevant memorandum on August 28, the CFTS correspondent reports.

"Under this this memorandum, the Ukrainian Seaports Authority undertakes to maintain the design depths and create an anchorage, which will facilitate development of not only Bunge, but all the other players in the port. I think that we have come to the need to develop not only major ports, but also smaller ones," the Ukrainian Seaports Authority’s head Raivis Veckagans said.

"We have already invested USD 280 million in the Mykolaiv seaport and become a significant player on the Ukrainian grain and butter exports market. By signing this memorandum, we are committing to providing 400,000 tons of additional capacity for agricultural crops. Implementation of the third phase will be completed by the end of 2018," said Bunge’s Executive Director of in the countries of Europe, Middle East and Africa.

The third phase the project will cost USD 30 million. It provides for creation of additional capacities for transshipment of oil and products with added value. The project also provides for increasing the design capacity of the existing facility, which will increase exports to 400,000 tons per year.

"We believe that the third phase of the project will significantly increase the handling and processing of cargo in the port," Ukraine’s Minister of Infrastructure Volodymyr Omelian said.

As reported, the Bunge Ukraine company built a terminal in the Mykolaiv seaport in 2011. This increased Ukraine’s grain export capacity by 3 million tons per year. The second phase of the project, which cost USD 180 million, was commissioned on June 15, 2016. It consisted of a production and transshipment complex, which includes a vegetable oil plant, an oil transshipment terminal, and an expanded-capacity grain terminal.