EBRD helps Louis Dreyfus Company set up railcar logistics business in Ukraine

By Anton Usov

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Louis Dreyfus Company (LDC) will set up its own railcar logistics business in Ukraine 

  • EBRD provides up to US$ 35 million for Louis Dreyfus Company (LDC)
  • Investment to increase competition and market efficiency in the country
  • One thousand new grain-hopper railcars will help cut CO2 emissions by 8,510 tonnes annually

Ukraine is growing in importance as a global market for grain sourcing. The latest EBRD project in this sector will enhance the trend by supporting the operations of LDC, a leading merchant and processor of agricultural goods and a partner of the Bank since 2000.

The EBRD is providing a loan of up to US$ 35 million to a railcar logistics business in Ukraine, which will be fully owned by LDC. The funds will be used to acquire up to 1,000 grain-hopper railcars, which will significantly facilitate grain-handling logistics for the company. LDC will be able to diversify its means of transporting grains from the country’s agricultural areas to its ports.

The new railcars will reduce the volume of grain transported by trucks and will therefore help to lower annual CO2 emissions by 8,510 tonnes.

In 2019, Ukraine is expecting a record grain harvest of more than 72 million tonnes, of which more than 50 million tonnes will be exported. Domestic grain-hopper railcars, most of which are heavily depreciated, carry 70 per cent of all grain traffic to the country’s seaports for export. The addition of new grain hoppers will significantly increase the effectiveness of grain-handling logistics and will strengthen Ukraine’s competitiveness in the market competition.

The EBRD is the largest international financial investor in Ukraine. Since the start of its operations there in 1993, the Bank has made a cumulative commitment of almost €13.6 billion through 432 projects in the country.

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