Investment Potential of the Agricultural Logistics in Ukraine

Transcription

1 Investment Potential of the Agricultural Logistics in Ukraine GROUP OF COMPANIES UKRAGROCOM & HERMES-TRADING Keep moving forward!

2 Ukraine is starting to play a greater role in food security of the planet. Ukrainian produce ways to world markets: 2

3 Cereals Oilseeds and processed products Cereals Oilseeds and processed products Production 63 MLN MT 17 MLN MT 77 MLN MT 22 MLN MT Export 33 MLN MT 10 MLN MT 44 MLN MT 14 MLN MT BLN USD BLN USD 3

4 Ukrainian market. High demand and competition The geography of the investments: UKRAINE RUSSIA US Cargill Glencore ADM Bunge Dreyfus GSI AGCO DuPont Monsanto EU Toepfer Soufflet Fait Ameropa Warsaw London Frankfurt Stock Markets MIDDLE EAST SAUDI ARABIA IRAN Other countries $ 1 BILLION Investment Funds ASIA CHINA JAPAN SOUTH KOREA Noble Olam Daewoo Mitsui Marubeni Cofco $ 3 BILLION 4

5 Conditions to increase production and export 1. AGRI PRODUCE PRODUCTION TECHNOLOGY 2. INFRASTRUCTURE ELEVATORS TRANSPORT HIGHWAYS TRANSPORT SEA TERMINALS RAILWAY TRUCKS ROADS RAILWAY SEA SEA VESSELS + RIVER TERMINALS RIVER RIVER VESSELS 5

6 Types of transportation used to export cereals and oilseeds Railway % 60 MLN MT % MLN MT Trucks River Increase in volumes by 17 MLN MT 6

7 Time is money 7

8 Ukraine railway infrastructure KM of commonly used railways > 450 MLN MT transportation volumes of all kinds of cargo * The map shows only main railways Black sea Azov sea Logistics railway storage stations Electrification Dolynska Mykolaiv New track to Ochakiv port 8

9 Roads infrastructure KM of commonly used roads > 183 MLN MT transportation volumes of all kinds of cargo * The map shows only main roads International roads (including European routes) National roads of Ukraine Black sea Azov sea Logistics trucks park at ports Repair New highways 9

10 River infrastructure KM of commonly used water ways > 6.3 MLN MT transportation volumes of all kinds of cargo Desna Sea ports River terminal * The map shows the main rivers Dnipro Pivdennyi Buh SVITLOVODSK RIVER TERMINAL mt of storage Dunai Black sea Azov sea River hubs for barge accumulation Dredging 10

11 Dredging of approaching channels and ports aquatoriums Yuzhnyi 19 Odesa Illichivsk 16 Mykolaiv 15 Ochakiv Dredging stages Transshipment in the roads (existing) Transshipment in the roads (new) 11

12 Problematic issues on internal river ways of Ukraine 2015 Export Internal transportation (cabotage) - Import Excessive additional expenses on pilotage, locking, drawbridge, port dues and one-time permits make the transportation on Dnipro more expensive than transportation on railway and/or trucks. If these are expenses are to be normalized, the Dnipro river transportation would have become cheaper. Positive consequences: increase of the fleet number and cargo volumes, decrease of load on auto- and railways, increase of the State budget revenue. 12

13 GROUP OF COMPANIES UKRAGROCOM & HERMES-TRADING 15 YEARS of successful development 350 THOUSAND MT of production of cereals and oilseeds 1 MILLION MT of trading > 500 THOUSAND MT of export TOP-22 AGRICULTURAL HOLDINGS IN UKRAINE 250 USD MILLION of investments 75 HECTARES of land 350 UNITS of machinery 520 UNITS of vehicles TOP-15 UKRAINIAN GRAIN EXPORTERS JOBS > 78 CENTNERS/HA of corn yield 70 T/DAY of milk T/DAY of sugar beet processing 13

14 Machinery in the field 14

15 Dairy Farm Petrykivske Moloko 15

16 Oleksandriiskyi Sugar Plant 16

17 Dobronadiivske 17

18 Sharivske 18

19 Svitlovodsk River Terminal 19

20 Shipment at Svitlovodsk River Terminal 20

21 Dispatch at Svitlovodsk River Terminal 21

22 Shipment at the deep-water port 22

23 Transshipment in the roads 23

24 Export trading is represented by Hermes-Trading LLC 2015 Head office Representation Inland silos River terminal Ports 24

25 Export trading is represented by Hermes-Trading LLC Head office Representation Inland silos River terminal Ports New representation New inland silos New river terminals Deep water port Fleet Transshipment in the roads 25

26 EXPORT Volume THND MT MLN MT MLN MT 100 Dollar Value 200 MLN USD MLN USD 500 MLN USD The development strategy is based, first of all, on the use of logistics benefits, particularly river logistics. 26

27 River logistics: efficiency Less efficient export without the use of river logistics Farmer Inland silo Railway Port Ship More efficient export with the use of river logistics Farmer River terminal Barges Transshipment Ship 27

28 FLEET Barges Tugs Self-propelled vessels Floating cranes Storage bins Investments USD MLN USD MLN 28

29 RIVER TERMINALS Terminals Storage capacities 200 THND MT THND MT 250 THND MT Investments 75 USD MLN USD MLN USD MLN 29

30 RIVER TRANSPORTATION Tonnage 50 THND MT 500 THND MT 1 MLN MT 10 Cost of cargo 100 MLN USD MLN USD 200 MLN USD 30

31 DEEP-WATER TERMINAL Construction of own deep-water terminal near Mykolaiv Capacities 100 THND MT 170 THND MT Investments 70 MLN USD 100 MLN USD 31

32 INLAND SILOS Storage 350 THND MT 500 THND MT 560 THND MT 90 Investments 135 MLN USD MLN USD 170 MLN USD 32

33 OWN VEHICLE FLEET Number of trucks Investments MLN USD MLN USD 7.2 MLN USD 33

34 OWN RAILWAY FLEET Number of railway wagons Number of routes 1 3 Investments 4.8 MLN USD 14 MLN USD 34

35 LOGISTICS CENTRES CREATION Creation of logistics company operating, fleet, railcars and vehicle fleet Creation of waterways navigation company for ships in other jurisdiction (Malta, EU member) 35

36 MARKETING PLATFORMS CREATION Servicing farmers and buying produce both on silos and with deliveries CPT, FOB Creation of market conditions for efficient trade with farmers: fertilizers, seeds, machinery, etc. 36

37 REPRESENTATION Representative offices in countries-importers near abroad Representative offices in countries-importers far abroad 37

38 INVESTMENTS IN MLN USD

39 RESUMING By 2022 out Total Investments into agricultural logistics development will account for more than USD 584 MILLION. We believe in the potential of Ukraine s agricultural market and we are open to cooperation in realizing agricultural logistics projects.

40 YURIY SKICHKO y.skichko@hermes-trading.com.ua