The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to US$ 60 million to Brooklyn-Kiev LLC, a leading private stevedoring company in Ukraine. Brooklyn-Kiev is developing a grain trans-shipment terminal in the Port of Odessa with an anticipated annual throughput capacity of up to 4.5 million tonnes of grain.
The project will be implemented jointly with Louis Dreyfus Commodities, a global leader in agribusiness, according to an agreement signed by the two companies, which intends to establish a joint venture for the development and management of the terminal and related activities.
In addition to addressing the shortage of modern, deep-water port grain trans-shipment capacity in Ukraine, the terminal will benefit the region by creating jobs and increasing economic activity in the Port of Odessa area.
Due to record grain harvests in Ukraine in recent years (around 60 million tonnes in 2013) the country is becoming an important global grain supplier. In this regard the EBRD is paying special attention to the development of port grain terminals, which handle over 95 per cent of grain exports from Ukraine.
Sevki Acuner, EBRD Director for Ukraine, said: “We know how important the agribusiness sector is for the economy of this country. The Bank is very pleased to support this venture, which is the product of a partnership between a major international commodity trader and a leading local stevedoring operator. It demonstrates that foreign and local investors have confidence in the sector and in Ukraine.”
Sue Barrett, EBRD Director, Transport commented: “The project has both regional and national significance. This investment will strengthen Odessa’s position as a major grain handling hub and support economic growth in Ukraine. It is part of the EBRD’s strategy to support integrated transport solutions in the countries where we work.”
The project forms part of the EBRD’s intensified efforts in Ukraine aimed at supporting the real sector of the domestic economy. This year, the Bank expects to be able to invest around €1 billion in the country, with the annual level of investment since February 2014 now standing at €500 million.
The EBRD is the largest financial investor in Ukraine. As of the end of July 2014 the Bank has committed €9.2 billion (US$ 12.3 billion) through 329 projects in the country.