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NIBULON seeks to purchase 250 grain carriers with the assistance of France

22 Apr, 2024
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NIBULON seeks to purchase 250 grain carriers with the assistance of France

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The agricultural holding Nibulon plans to purchase 250 grain wagons with the assistance of France. This was announced by the company's director for government relations, Mykhailo Rizak, as reported on Facebook

The issue was raised during a visit by the French Ambassador for Black Sea Affairs to Nibulon's facilities in Mykolaiv. The French Ambassador and company representatives discussed the issue of the blocked fleet and the need to remove it to increase the export potential of the Danube. In particular, Mykhailo Rizak noted that evacuating the fleet from the Mykolaiv port hub should return freight prices on the Danube to pre-war levels, reducing logistics costs by approximately $20 per ton.

A representative of Nibulon also emphasized that the logistics system built by the company along the Danube played a significant role for the entire Ukrainian export during the war when the deep-water ports of Odessa were not operational. However, despite its high potential and practicality, this export route is not fully utilized today, as it loses out in terms of profitability to the deep-water ports of Odessa.

"At present, Bessarabia is more expensive in terms of railway and trucking transportation compared to the deep-water ports because it involves an additional 250 km of roads and 200 km of railways, which increases logistics costs," Mykhailo Rizak noted.

 

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He sees the solution in leveling the playing field. Specifically, Ukrzaliznytsia could provide competitive delivery conditions for agricultural products to Danube ports by offering special tariffs for its services. Additionally, through the ambassador, Mykhailo Rizak appealed to French organizations to help purchase another 250 grain wagons.

"If Ukraine implemented the EU's experience of compensating/canceling excise taxes on fuel for cabotage transportation, we would have saved the roads from trucks, and today we would see the Southern Bug and the Dnipro as navigable," said the director for government relations of Nibulon.

At the end of the meeting, the delegation visited the Nibulon Shipbuilding and Ship Repair Plant and the Transshipment Terminal, which are not only the company's showcase but also a hallmark of the entire region.

The Odessa Journal

The Odessa Journal

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