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2015 June 16   17:21

PhosAgro expects investments into Smart Bulk Terminal (Ust-Luga) to pay back in 3.5-4 years

Investments into Smart Bulk Terminal (Ust-Luga, Leningrad region) are supposed to recover over a period of 3.5-4 years, IAA PortNews correspondent cites PhosAgro CEO Andrey Guryev, as saying at the ceremony of launching Smart Bulk Terminal for transshipment of PhosAgro fertilizers.

Andrey Guryev also said the company completely leaves the ports of the Baltic states.

“We used to handle considerable volumes in Kotka (Finland) and Riga (Latvia). Today we are leaving those ports. This year we are going to transship via Russian ports 1.5 mln t of fertilizers earlier handled in Baltic ports,” Andrey Guryev said.
According to him, the company primarily operates at the ports of Murmansk, Saint-Petersburg and Ust-Luga.

It is an inaugural entry to the Russian market for the Chinese company. Total investments into the project are estimated at RUB 650 mln. PhosAgro and Ultramar will finance the project with their own resources on a pro rata basis (70/30).

PhosAgro and Ultramar (Russia’s largest transporter of mineral fertilizers in containers) have earlier established Smart Bulk Terminal LLC, their own operator on transshipment of mineral fertilizers via the port of Ust-Luga (Leningrad region). PhosAgro owns 70% of the company.

PhosAgro is Europe’s largest producer of phosphate-based fertilisers, the world’s largest producer of high-grade phosphate rock and the world’s second largest producer (excluding China) of MAP and DAP (according to Fertecon), Russia’s only producer of feed monocalcium phosphate (MCP), and also the sole producer of nepheline concentrate in Russia.  PhosAgro’s primary assets include Apatit, PhosAgro-Cherepovets (established as a result of the merger of Ammophos and Cherepovetsky Azot), Agro-Cherepovets, Balakovo branch of OJSC Apatit, Metachem, PhosAgro-Trans, PhosAgro-Region and NIUIF.  

Related links: 

Smart Bulk Terminal for transshipment of PhosAgro fertilizers launched at Ust-Luga port  >>>> (Leningrad region)

Ust-Luga to be fertilized with containers >>>>