Louis Dreyfus, a French multinational conglomerate, has signed an agreement with Brooklyn Kiev to establish a joint venture for the development of a grain terminal in Odessa, Ukraine.
Scheduled to commence the first phase of its operation in 2013, the terminal will have a total grain storage capacity of about 240,000 tons when all stages of development are complete.
Louis Dreyfus plans to transship its first grain cargo through the terminal in the coming months. The transaction is subject to certain conditions and regulatory approvals.
Louis Dreyfus Commodities Europe and the Black Sea CEO Jean-Marc Foucher said that this is a key step in the company's investment strategy in the region, and an excellent complement to its existing logistic assets.
"The substantial growth in Ukrainian grain production and exports, which is expected to continue in the coming years, driven by higher yields, increasing corn crops and more efficient farming operations, requires efficient export channels."
The Odessa terminal will be able to handle large volumes of grain and oilseeds effectively, allowing the company to serve its global clients as well as benefit the agricultural sector in Ukraine.
Brooklyn Kiev managing director Yuryi Gubankov said that this partnership agreement is a major step forward in the development of our terminal, creating a solid link with Louis Dreyfus Commodities, one of the largest grain exporters out of Ukraine.
"The project combines the expertise of Brooklyn Kiev in stevedoring, freight forwarding and port operations with the experience of Louis Dreyfus Commodities in grain origination, selection and exportation. It will strengthen the competitiveness of our terminal, which has all the right pre-conditions, in terms of location and technical features, to be a success," Gubankov added.