GENEVA, SWITZERLAND and ODESSA, UKRAINE, 17 October 2013 –Louis Dreyfus Commodities Suisse SA, a wholly owned subsidiary of Louis Dreyfus Commodities, and Brooklyn Kiev LLC announced today that they have entered into an agreement to establish a joint venture for the development and management of a multi-commodity terminal in Odessa and related activities.
The new terminal is expected to start the first phase of its operation in 2013, with Louis Dreyfus Commodities planning to transship its first grain cargo through the terminal in the coming months. When all stages of development are complete, around August 2014, the terminal will have a total grain storage capacity of about 240,000 metric tons.
“This is a key step in our investment strategy in the region, and an excellent complement to our existing logistic assets” commented Jean-Marc Foucher, CEO of Louis Dreyfus Commodities for Europe and the Black Sea. “The substantial growth in Ukrainian grain production and exports, which is expected to continue in the coming years, driven by higher yields, increasing corn crops and more efficient farming operations, requires efficient export channels. The Odessa terminal will be able to handle large volumes of grain and oilseeds quickly and effectively. This will help us serve our global clients more efficiently and will also benefit the agricultural sector in Ukraine as a whole.”
Yuryi Gubankov, Managing Director of Brooklyn Kiev, said “This partnership agreement is a major step forward in the development of our terminal, creating a solid link with Louis Dreyfus Commodities, one of the largest grain exporters out of Ukraine. The project combines the expertise of Brooklyn Kiev in stevedoring, freight forwarding and port operations with the experience of Louis Dreyfus Commodities in grain origination, selection and exportation. It will strengthen the competitiveness of our terminal, which has all the right pre-conditions, in terms of location and technical features, to be a success.”
The transaction announced today is subject to certain conditions and regulatory approvals.