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Public Joint Stock Company State Food and Grain Corporation of Ukraine (SFGCU) plans to allocate 93 million UAH in 2014 to upgrade and buy new equipment for grain infrastructure, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Some 6 dryers, 10 car-loaders, 12 car and 5 rail weights, 10 separators, laboratory and other production equipment for grain elevators will be purchased with these funds.
Also planned during 2014 is the large-scale modernization of 44 elevators at SFGCU elevator enterprises under loan agreements with the Export-Import Bank of China. The work will cost 200 million USD. This loan is the first part of the loan agreement with the Chinese bank. The second part of the Chinese loan will cost 1.5 billion USD and will be provided in kind, in case of purchase of Chinese goods (fertilizers and agricultural machinery) and services over the next 5 years. The funds will be allocated in tranches of 300 million USD for irrigation projects and development of grain logistics.
SFGCU is presently upgrading the Mykolayiv grain elevator, which will be completed in the first half of 2014. After that its handling capacity will grow to 2,000 tons of grain daily, increasing the plant capacity by 35%.
A separate area where SFGCU is intensively expanding its influence is transportation and logistics of grain, government analysts say. Thus, for the expansion of transport infrastructure and transport efficiency, the corporation will use the Chinese loan funds to purchase its own merchant fleet (according to corporate forecasts, agricultural exports till 2020 will grow by 60%). In particular, the SFGCU plans to buy 10 grain carriers with a capacity of 55 tons or more under the loan agreement with China. The estimated cost of one vessel is about 30 million USD. The first lot of grain tankers will be purchased in 2015, the second one - in 2016.