Operators of grain market have opportunities for gains – Borivage

Source

APK-Inform

2262

 

 

 

Ukraine exports grains at a fast pace this season. Well-functioning port terminals are one of the key chain in transportation process. Ukraine eliminated a number of procedures and documents last months to simplify cargo execution in the ports. Vitaliy Fedorov, director of Borivage LLC tell us about activity of one of the biggest Ukrainian terminals.

 

- Borivage company launched grain terminal in port Yuzhny in 2009. Now it is among TOP-10 terminals in Ukraine. How did you manage to cope with competition?

It was momentous event for Ukrainian market, as we launched unique terminal with capacity exceeding 2 mln tonnes. Now the complex operates full out and we are planning to develop our capacities. As to the competition, we know how to work with clients, provide flexible pricing policy and have our own deep-water berth allowing us to handle all type of vessels.

 

 

- The company plans to double its grain simultaneous storage capacities (up to 320 thsd tones). Tell us about these plans.

To date we completed the second line of grain handling complex. Currently we are choosing all necessary equipment for future elevator. We are planning to finish the construction by the spring 2017.

 

- Borivage started to trade with grains several years ago. Tell us about this part of activity.

We keep on selling agricultural products produced at our holding and do not purchase other goods almost at all. I suppose that we are not going to trade actively and will sell our own products. Focus on transshipment, development of the complex, higher productivity and better quality of our services are the current aims of the company.

 

- How can you characterize the first half of 2015/16 MY for Ukrainian grain market?

To my mind, the first half of the season was rather good in all parameters. Quality and quantitative indicators of grain were favorable. Terminal transshipped grain at rather fast pace and the volumes handled exceeded last year level.

 

- Let’s talk about motor and rail transportation of grains to ports. How can you characterize this segment?

Rail transportation in Ukraine is rather stable and well-organized, while motor transportation has a number of problems. Condition of road surface is awful at least in Odessa oblast. In 2015, we had to invest 12 mln UAH to fit large territory for parking so now vehicles do not occupy general use road.

 

- Borivage invested large sum of money in construction of new railway district near port Yuzhny. How will it influence on terminal operation? Do you plan to invest in other projects in near-term?

After modernization of the given railway district, its transshipment capacity will increase. We will increase grain transportation volume to 250 cars per day. However, we reach this level after construction of the second line of the terminal.

As to the projects, I can say that we will make investments in 2016 but I would like to keep secret.

 

- What problems are burning in Ukrainian logistics?

As logistics include documentation, these are some questions as to a cancelation of veterinary certificates. They are not compulsory now, but it does not refer to shipload lots. Moreover, there are not any clear instructions as to GM products. Laws are not worked out in details. However, the logistics was improved as a number of documents were eliminated, they were not necessary but caused bribes.

 

- Are there cases of groundless control of approval documents in the ports?

No, there are not. Control procedures are carried in due form.

 

- Have you changed tariffs for terminal services?

As of today, we keep the tariffs unchanged as demand stayed at the last year level. As to the next seasons, we will consider tariff level at the end of the current season. Everything will depend on our expenses for transshipment and clients’ activity.

Interviewed by Eugenia Severina

Advertising

Enter