The European Bank for Reconstruction and Development provided a USD 35 million loan to a subsidiary of Louis Dreyfus Company in Ukraine for the procurement freight railcars.
Company’s project envisages the acquisition of up to 1,000 grain hopper railcars, a project which has a total estimated cost of USD 70 million.
The new railcars will be used for transport of grain and oilseed.
The procurement will support its strategy of building a reliable and efficient supply chain in Ukraine and will aim to address the existing shortage of railcars on the Ukrainian market.
Rail cars will be built and maintained in accordance with national and manufacturer’s standards and an emergency response plan prepared to assign roles, responsibilities and response requirements between the entities involved in rail car movements.
In 2018, LDC ordered 330 grain railcars, which will increase Ukraine’s rail export capacity by 600,000 tonnes annually. This procurement has an option to buy more in the next two years.
Founded in 1851 and active in more than 100 countries, Louis Dreyfus Company is a merchant and processor of agricultural goods, originating, processing, merchandising and transporting over 80 million tonnes of products annually.
Since establishing its presence in the country more than twenty years ago, LDC Ukraine has become one of the country’s three largest grains and oilseeds exporters, specializing in wheat, barley, maize, sunflower and soybeans.
In Ukraine, LDC’s assets have a total storage capacity of 361,000 tonnes. The Rahny grains and oilseeds warehouse has a storage capacity of 159,000 tonnes, the Gaysin warehouse, a complex of three silos situated in Vinnytsia region, has a total storage capacity of 72,000 tonnes, Serdyukovka warehouse, situated in Cherkassy region, has a storage capacity of up to 32,000 tonnes and Mykhailovka warehouse, 98,000 tonnes. In addition, the Odessa Port facility, a partnership agreement with Brooklyn Kiev, has a total grain storage capacity is about 240,000 MT, and with an annual transshipment capacity of up to 4.5 million tonnes.