EBRD loans $50m to Ukrainian firm to help increase grain exports

The European Bank for Reconstruction and Development has agreed to loan $50 million to one of Ukraine's biggest exporters of grain to improve logistics, according to a press release published Thursday.

The loan to Nibulon Group is aimed at bolstering grain movements along inland waterways by up to 4 million mt a year and increase total grain exports by up to 8 million mt per year.

The loan comes as Nibulon signs off on an upgraded grain transhipment facility at Mykolaiv.

The facility will have a capacity of 43,000 mt.

The loan is part of Nibulon’s three-year investment programme aimed at expanding capacity through “construction of three new grain river terminals, expansion of Nibulon’s fleet including new floating transhipment crane, tugboats, barges,” according to the press release.

Ukraine’s logistics are perhaps its biggest bottleneck in expanding the country’s export capacity, with data from the Ukrainian Grains Association putting the current total port storage at 3.3 million mt, inland storage of 40 million mt and a transhipment capacity of 60 million mt.

That compares with production levels of around 70 million mt.

However, the transport capacity stands at 40 million mt with some 67% of it, around 27 million mt, rail-based, where a shortage of rolling stock has caused major logistical challenges in getting grains to the ports for export.

Currently, Ukraine’s internal rivers handle around 2 million mt, or 5% of total movement with the final 11 million mt moved by truck.