Ukrainian grain exporters will crave for enlargement of sea port handling capacities in the nearest 10 years inasmuch as the agribusiness is capable of doubling the grain’s yield.
That was the judgement expressed by President of Ukrainian Grain Association (UGA) Mykola Gorbachev in his video interview to the publishers house Ports of Ukraine.
“Ukraine has not even half employed its grains planting potential yet. We have the average 4 t of wheat and a bit over 5 t of corn per hectare collected. Let’s compare it to the USA with its average 11 t of corn, and France with the average 8 t of wheat per hectare. And we do possess every precondition for harvesting at least the same as these countries. Therefore one could say that we could grow twice as much”, told the expert.
By Mr Gorbachev’s opinion, growing twofold more Ukraine would soon understand that the terminals are not enough.
“That’s why I believe in the nearest 10 years the terminals erection will continue, and that would be still profitable business”, he specified.
According to Mr Gorbachev, more forward-looking are the terminals grain traders build for their own capacities, while they attract cargoes on their own.
“A terminal of one’s own may be considered not only as a money earning tool, but also a mode of the quality management – for both the goods itself and the service rendered. When you receive a vessel you load not 5,000 but 40,000 t a day – accordingly the freight rates are going to be lower”, he added.
Also Mr Gorbachev stressed that Ukraine’s handling cost is still higher than that in Europe. In Europe the cost of handling amount to €6 per ton, while ours is $9-11 nowadays.
“I reckon that it will end up the same way as it did in all those countries where grain terminals belong to traders in 99 %. Because the earnable margin there is rather small. One has to manage the cargo flow, must draw enormous funds to secure this cargo flow. And for a handling company which had built the terminal, invested $100-200M in it, now attracting some $300-400 more to secure the cargo flow is practically unreal”, explained Mr Gorbachev.
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