USPA, COFCO International and Mariupol State Stevedoring Company set to increase agricultural products turnover in the port 3.5 times
A large-scale investment project is to be implemented in the port of Mariupol to increase the turnover of agricultural products by 3.5 times. The corresponding memorandum of understanding was signed by the Ukrainian Sea Ports Authority (USPA), the Mariupol Sea Trade Port (MSTP), COFCO Agri Resources Ukraine LLC (COFCO International) and STT LLC (STT) on the sidelines of the RE:THINK First Investment Forum which was held under the auspices of the President of Ukraine on October 29 in the Mariupol city, USPA says in a press release.
The memorandum aims to bring together USPA, the state stevedoring company and the private companies to implement the project on the development of the berth infrastructure, construction of a grain terminal in the rear of the berth No. 3 and creation of a single overloading complex in the rear of the berths No.No. 2 and 3 of the Mariupol port.
“This is another example of public-private partnership in the port industry with well-defined responsibilities of each party. It takes into account all the components of the project – reconstruction of berths, construction of new overloading facilities and, most importantly, providing the cargo handling volumes in the port of not less than 2.3 million tons per year. It will allow Mariupol to become one of the key logistics centers for exporting agricultural products in the southeast of Ukraine",— the Head of USPA Raivis Veckagans commented on the document signing.
According to the text of the memorandum, USPA intends to ensure timely designing and reconstruction of the hydraulic engineering part of the berths No. No. 2 and 3.
MSTP, on its part, undertakes to ensure the construction of the grain terminal in the rear of the berth No. 3 and to secure the cargo handling volumes (through the berths No. No. 2–4 of the Mariupol sea port) of not less than 2.3 million tons per a year. Implementation of the project on the construction of the modern grain terminal will allow to create about 90 new jobs in the region.
In turn, COFCO International and STT upon completion of the corresponding works by USPA and MSTP intend to secure handling through the new Mariupol port terminal of sunflower oil of not less than 400 thousand tons per year, of granulated sunflower meal – not less than 400 thousand tons per year, of grain cargo – not less than 400 thousand tons per year.
It will allow to diversify the cargo flows in the Mariupol sea port, to increase its competitiveness as well as to increase the number of vessel calls in Mariupol.
The memorandum was signed by the Head of USPA Raivis Veckagans, the Director of MSTP Olexandr Oliinyk, the General Director of COFCO Agri Resources Ukraine LLC Volodymyr Osadchuk and the Commercial Director of STT Volodymyr Sudeiko.
USPA is one of the largest state enterprises in Ukraine. The scope of its responsibilities includes the strategy implementation and management of all the seaports in the country. USPA makes investments into the development of water areas, berths and other port infrastructure, develops public-private partnership projects, as well as secures the maintenance of passport depths in the ports, pilotage of vessels and safety of navigation.
USPA’s assets amount to more than UAH 20 billion with 162 units of the own fleet and 263 berths with a total length of more than 40 km to produce more than 135 million tons of cargo turnover (in 2018).
With 11,000 people in 35 countries, COFCO International is the overseas agriculture business platform for COFCO Corporation, China's largest food and agriculture company. COFCO International is focused on being a leader in the global grains, oilseeds and sugar supply chains, with assets across the Americas, Europe and Asia-Pacific. The company trades with over 50 nations, while providing farmers unique direct access to the growing Chinese market. In 2018, COFCO International handled over 100 million tonnes of related commodities with revenues of $31bn. The company is accelerating its growth to create a world-class integrated global agriculture supply chain, anchored in China and competing globally.