UGC JSC, Demetra-Holding and FSUE Rosmorport agree to collaborate in the construction of a new port infrastructure for grain transshipment


St. Petersburg, 3 June.

Today, at St. Petersburg International Economic Forum, JSC UGC, Demetra-Holding and FSUE Rosmorport signed an agreement on collaboration in implementing the investment projects to develop the infrastructure necessary for grain cargo transshipment in the seaports of the Russian Federation.

The document was signed by Dmitry Sergeev, General Director of JSC UGC, Vitaly Sergeychuk, CEO of Demetra-Holding, and Alexander Smirnov, General Director of FSUE Rosmorport.

The strategic partnership enshrines the intentions of the parties to work together on the development of port and harbour infrastructure. The project involves the construction of a new two-way pier at the head of the existing pier No 3 in the port of Novorossiysk (used by NGT LLC и NGPP PJSC) to accommodate Panamax vessels, a grain conveyor gallery and a complex of auxiliary and infrastructure facilities, as well as dredging. The works on the project are expected to be implemented on a parity basis.

The project is included in the Federal Development of Seaports Project for the transport part of the Comprehensive Plan for Modernisation and Expansion of the Backbone Infrastructure until 2024. The development of port facilities for the transshipment of grain cargo will ensure that Russian President Vladimir Putin's instruction to increase exports of agricultural products is fulfilled

The construction of the new pier will allow resolving the issue of creating the commodity distribution export infrastructure, while the modernisation of the terminal will double the total transshipment capacity from the current 13.6 mtpa (7.1 mtpa for NGP P PJSC and  6.5 mtpa for NGT LLC) up to about 25 mtpa (13.1 mtpa for NGPP PJSC and  12.5 mtpa for NGT LLC) by 2025, and one-time storage capacity will increase from  370,000 tons to 870,000 tons.

Dmitry Sergeev, General Director of United Grain Company JSC:

'UGC Group is implementing a large-scale investment programme aimed at the deep modernisation of NGPP PJSC by increasing its capacity for grain storage and shipment. This project will make the Russian wheat more attractive for exports to global markets and ensure comprehensive development of internal infrastructure in the Russian grain market.'

Vitaly Sergeychuk, Demetra-Holding's CEO:

'We are actively working on increasing port transshipment capacities, and we approach this issue comprehensively by developing the entire chain of export-oriented logistics infrastructure. These additional facilities will optimise the transshipment capacities through greater operational efficiency, which will further develop Russia's grain complex and increase the competitiveness of Russian grain on world markets.'