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Cargill investment project in Yuzhnyi seaport - the agreement is signed

State Enterprise “Ukrainian Sea Ports Authority” (USPA) and "MV Cargo" LLC  has signed an agreement on the implementation of two partnership projects in relation of the construction of a terminal in the port "Yuzhnyi".

During the solemn ceremony, the document was signed by CEO of USPA Andrey Amelin and Director of "MV Cargo" Alexander Primak in presence of the Director General of "Cargill Ukraine" Martin Schuldt, Director General of "TIS" Andrey Stavnitser, Head of Yuzhnyi Sea Port Authority Maxim Shirokov, and Director of the grain division "Cargill Europe" Andreas Rickmers, Vice-President of “Cargill International” Roger Janson.

Under terms of the agreement "MV Cargo" LLC, acting as a developer will undertake the construction of a specialized grain terminal as well as a berth №25 in the sea port of Yuzhnyi. In the first phase of the project the capacity of the terminal will amount up to 5 million tons and the second phase provides the increase by another 2-4 million tons.

In turn, USPA ensures navigable operational water area at the berth №25 as well as the approaching channel to the future grain terminal. Depths of the waters and the approaching channel will be dredged down to 16 meters.

The estimated investment in the construction of a grain terminal will amount to USD 104 million. USPA invests USD 50 million for dredging works. Feasibility study of the project for advanced depths in the port of Yuzhnyi is already submitted for endorsement in core ministries.

"A key component of the agreement for us is the term under which the Cargill ensure the loading of the terminal with necessary volumes of grain cargo. This is a vivid example of an idea to assign the cargo owner with certain berth, which creates a comfortable and clear conditions for public-private partnership", - said the CEO of USPA Andrey Amelin during the signing of the agreement.

"We expect the project to generate over UAH 300 million in tax payments annually and to create employment for around 350 people", said the Director of "MV Cargo" LLC Alexander Primak.

"MV Cargo" LLC grain terminal completion is scheduled for 1 September 2018. In turn, USPA agrees to finish dredging at the latest 1 February 2018.

Thus, the parties complied with terms of the agreement signed on 24 February 2016 with Cargill in the Cabinet of Ministers of Ukraine in the presence of the Prime Minister Arseniy Yatsenyuk, US Ambassador Jeffrey Payet, the Minister of infrastructure Andrew Pivovarsky, the Minister of Agrarian Policy and Food of Ukraine Alexey Pavlenko and the Finance Minister Natalia Yaresko.

Recall that on 17 August 2015 in the Ministry of Infrastructure of Ukraine was signed a trilateral Memorandum formalizing the intention to implement the investment project in the sea port of Yuzhnyi. The document was signed by the Director General of "Cargill Ukraine" Martin Schuldt, the CEO of USPA Andrey Amelin and the Director of "MV Cargo" Alexander Primak.

The document certified Cargill's intention to purchase 51% of shares of cargo terminal, which "MV Cargo" LLC will build in the sea port of Yuzhnyi.

On 24 February 2016, Cargill and "MV Cargo" signed the agreement on construction of a new grain terminal in the sea port of Yuzhnyi.