Cargill`s new Yuzhny terminal to bring over $30 mln to Ukraine`s coffers per year

The new grain terminal of U.S. company Cargill being built at the port of Yuzhny will bring over UAH 600 million, or US$22.7 million, in taxes and about $8 million in port fees to Ukraine`s coffers annually.

This was announced during an official ceremony when a contract was signed between the State Enterprise Ukrainian Sea Ports Authority (USPA) and China Harbor Engineering Company LTD (CHEC) for dredging at the port.

The event took place in the building of Ukraine`s Cabinet of Ministers. It was attended, among others, by Ukrainian Cabinet members, Ambassador Extraordinary and Plenipotentiary of China to Ukraine Du Wei, USPA CEO Raivis Veckagans, and Vice President of China Construction Communications Company Wen Gang.

Ukrainian Prime Minister Volodymyr Groysman, who was present at the ceremony, stressed the importance of carrying out dredging operations efficiently and quickly.

”Today, we can sign an agreement on China`s participation in the development of Ukrainian infrastructure. It is important. Chinese businesses have seen that the new Ukrainian legislation allows [everybody] to participate in Ukrainian tenders openly and publicly and win them. Dredging under this tender means a lot and is a large-scale project for Ukraine. This will boost the capabilities of our Yuzhny seaport. This will increase opportunities for the development of the national economy, which is one of the main priorities for the government,” Groysman stressed.

Dredging of the water area of berths Nos. 23, 24, and 25 at the port of Yuzhny is envisaged by an investment project for the construction of a terminal with a storage capacity of 5 million tonnes of grain per year by the U.S. corporation Cargill.

Ukrainian Infrastructure Minister Volodymyr Omelyan noted that the involvement of the American partners makes the dredging a quick-paying project.

”This is the first step on which not only the image of the ministry or the Chinese company depends, but also the image of Ukraine, China and the United States, which implement a $100 million project at the port of Yuzhny. We expect the creation of hundreds of jobs and additional revenues to the budget following its implementation,” Omelyan said.

As reported, Ukraine`s Cabinet of Ministers on April 19, 2017, agreed to conduct dredging for the grain terminal of Cargill Corporation in the port of Yuzhny. The project assumes a deepening of the maritime approach channel up to 19 meters and inland water approaches to deep-water berths Nos. 23, 24 and 25 (up to 16 meters).

The investment agreement on the construction of the modern grain terminal was signed in February 2016. According to the document, Cargill is to invest $100 million in construction. The total cost of the project will be $150 million. The construction of the piers near which the Cargill grain terminal will be located, is already underway. Works on the land side of the terminal have been completed by 40%. The terminal is expected to be put into operation in March 2018.

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