A cluster will be created in the territory of the port that combines production and loading facilities
Despite the economic crisis, implementation of major investment projects is now in full swing in Mykolaiv seaport, with more than $450 million worth of investments attracted over the past seven years.
"The prosperity of Mykolaiv city depends by two-thirds on the performance of companies operating in the maritime sector, and our port has long turned into a huge construction site," said Honorary President of the Mykolaiv seaport Vasyl Kapatsyna.
"The country’s largest investment projects are being implemented here by companies from the US and China. Even given current problems, Ukraine is attractive to investors. Capital is ready to enter our country, especially if investors are ensured attractive and comfortable conditions," he said.
One of the projects is implemented by Bunge company, being one of the world’s leading grain traders. It is creating a cluster that combines production and loading facilities in the territory of the port.
The first stage of the investment project was the construction of a mechanized and automated grain terminal, which was built in 2009-2010 and designed for storage of 120,000 tonnes of grain. In 2014-15 marketing year, the terminal handled 3.12 million tonnes, exceeding the designed capacity of 3 million tonnes. The current marketing year may see 4 million tonnes.
The second phase provides for construction of a plant for the production of sunflower and soya oil. This is a project by Ukrbud company. With the refining capacity of 2,400 tonnes per day the plant will become Ukraine’s largest. Oil and sprat will be exported, certain amount of sunflower husks will be used for technological needs, and the rest will be sold as fuel briquettes.
According to Andriy Dmytrenko, director of Ukrbud company that deals with the construction of the complex, a land plot of 11ha would have been required for building the plant with the daily capacity of 2,000 tonnes. However, their project envisages twice as little the area while ensuring even higher production capacities.
Read alsoUkraine invites U.S., Canada to manufacture farm equipmentBunge has invested $100 million in the construction in the grain terminal, with additional $170 million required for completion. The project contributes to creation of 180 permanent jobs.
Chinese investor, Noble Agri, has provided funds for the construction of another grain terminal being built by Ukrbud. It is designed for storage of 140,000 tonnes of grain with annual handling capacity of 3 million tonnes. The implementation of capital-intensive and technically challenging project is planned to be completed within 14 months.
The contract on cooperation with Noble Agri was signed a year ago. Prior to signing, the investment site had been prepared, land and legal issues resolved and engineering networks built.
Read alsoDW: Ukraine is China's breadbasket
"Mykolaiv port was the country’s top port in terms of grain transportation volumes one hundred years ago," according to Vasyl Kapatsyna.
"Today, we are regaining the status of the country's largest grain harbor. It’s impossible to achive success in one day. To increase the investment attractiveness, we commercialized the port. Reforms and public-private partnership are the basis to ensure that the investors come," he said.
The size of construction is impressive, indeed. According to Dmytrenko, 110,000 cm of concrete has already been used at the construction site, as well as 7,000 tonnes of structural steel.
Mykolaiv sea port is one of the city’s largest enterprises. Over the past ten years, the port’s cargo handling capacities tripled - from 4 to 12 million tonnes.