United Grain Company (UGC) and Dalport Ltd. signed a Letter of Intent (LOI) agreement on "Cooperation in the Development of Infrastructure Facilities for Handling Grain Cargoes to the Russian Far East," UGC reports.
The two companies will participate through a Joint Venture in the joint project worth RUB 5 billion for construction and operation of a grain handling facility at Vostochny port. The terminal is designed for transshipment of export grain in volume of up to 5 million tons and handling of up to 500 tons of inbound cargo annually.
The terminal project is scheduled to be executed in the 2012-2014 period. The parties will soon hold talks to determine the terms of their future cooperation and the shares they will have in the JV.
"We see the potential of the Siberian and Far Eastern federal districts to increase the production and exports of Russian grain. But the existing infrastructure for handling grain in the Far East neither meet any possibilities of Russian grain producers, nor the demand of rapidly growing Asian markets ", says UGC CEO Sergey Levin.