The market of grain logistics in the spring of 2017 – realities and prospects

This year, it is planned to implement several infrastructure projects, which should positively affect the grain market. In particular, before the end of July, “Nibulon” promises to complete the construction of the terminal in the village of Belenkoye, which is in the Zaporozhye region. Under the project, it will pass up to 450 tons of grain per year, and logistics costs will be lower than the current by 4-6 dollars / ton.

Also, a major foreign investor DP World promises to enter the port of South, which will give a powerful impetus to the development of the sea freight market and grain logistics in particular. Still now, the option of reconstructing the old general cargo warehouse in Mariupol port under the modern grain cluster, capable of handling up to 2 million tons per year and simultaneously storing 130,000 tons of cereals, is actively being worked out. But he will be able to reach the designed capacity only by 2019.

In the meantime, all the events described are only in the plans, let’s find out how many agrarians sold grain and whether they will go to the record in 2017?

The previous achievement of the enterprises of the AIC is dated 15-16 fiscal year. They were able to ship 39.5 million tons of grain. In 16-17, the record can be repeated or even updated. As of mid-April, Minagroprod reports on the realized 35 million tons. The forecast before the close of the reporting year is 40 million tons.

By kinds of grain, for export they sent:

• Almost 15 million tons of wheat and corn;
• 4.9 million tonnes of barley, 4.3 thousand tonnes of rye;
• 299 thousand tons of flour, 298 of which are wheat.

As you can see, the agrarians are not going to slow down and push the grain logistics market to a rapid development. Transshipment terminals are being actively built, investors are being sought, projects for the development of river and sea navigation are proceeding. It remains for us to wait for the impact on the DP World market and whether new investors will come.