August 18, 2009

Nibulon, a large Ukrainian grain producer and trader, has begun building a new grain river terminal on the Dnepr river in central Ukraine to increase exports, the company said Monday (Aug 17).

Nibulon plans to export four million tonnes in the 2009-10 marketing year, said company CEO Oleksjj Vadaturskyi.

If Nibulon succeeds in implementing its new investment project for building a grain trading fleet and the construction of grain elevators and river terminals, the company's share in Ukrainian grain exports would increase, he said.

Earlier this year, Nibulon said it would invest about US$150 million to build 24 barges to ship grain across Ukraine and the Black Sea region, and reduce transport costs.

Nibulon received the first barge last week.

The company also planned to build seven silos and river terminals with a total storage capacity of 300,000 tonnes. The capacity could be increased to 600,000 tonnes by July 2010.

Nibulon said its new river fleet and terminals would allow it to ship through the Dnepr about one million tonnes of grain per year.

Nibulon operates a large grain export terminal in Mykolaiyv, close to the Black Sea, and six silos.