The Ministry of Infrastructure has signed a tripartite memorandum of intent to implement an investment project at the Yuzhny seaport. The document was signed by Cargill’s CEO Martin Schuldt, the Administration of Seaports of Ukraine’s Chairman Andrii Amelin, the MV Cargo company’s Director Oleksandr Prymak, the press service of the Ministry of Infrastructure said.
The document demonstrates Cargill’s intention to acquire 51% of the transshipment terminal that the MV Cargo stevedoring company intends to build at the Yuzhny seaport.
Under the terms of the memorandum, the Administration of Seaports of Ukraine undertakes to create a water body with the appropriate level of dredging on the approach to the terminal. The press service of the Ministry of Infrastructure told the CFTS portal that the memorandum applied to the 25th berth.
"The attractiveness of investments is that they have a positive impact on the economy at all levels. The new terminal will mean an increase in port revenues, revenues into local and state budgets, and more high-paying jobs for Ukrainians. After implementation of the Cargill investment project, 350 new jobs will appear in the Odessa region. We want similar projects by world-renowned companies to become a positive signal to businesses that are just preparing to enter Ukraine," Minister of Infrastructure Andrii Pyvovarskyi said.
The terminal will allow Cargill to perform transshipment of grains, grain byproducts, and other goods. The first phase of the construction project will have a capacity of 5 million tons. The second phase will increase the capacity by 2.4 million tons.
"Ukraine has great potential in the agricultural sector, and it will only increase in the near future. Cargill needs additional infrastructure to be able to handle more cargoes. Construction of the terminal in the Yuzhny seaport will allow us to export up to 70% of our Ukrainian grain cargo from there," Schuldt said.
The next step after the signing the memorandum of understanding will be joint drafting of a cooperation agreement, which will set the terms for implementation of the technical parameters of the project and the responsibilities of the parties. The parties plan to sign this agreement after Cargill acquires a stake in MV Cargo.
The amount of planned investment is about USD 130 million. The parties will have to start implementing the project within one year after the signing of the agreement. The terminal is scheduled to be launched in 2017.
As the Interfax Ukraine news agency reported on 14 July, citing the Harmonized State Register of Legal Entities and Individuals, citing the Unified State Register of Legal Entities and Individuals, the MV Cargo limited liability company was founded in 2004 by Kornleks Impex Limited (Cyprus). According to Interfax Ukraine, MV Cargo was formerly owned by Valentyna Mushynska, Yehor Hrebennykov, and Andrii Stavnytser (the director and co-owner of the TIS group of terminals).