GENEVA (QHA) - Trading giant Louis Dreyfus Commodities said on Thursday it has entered a joint venture agreement with Brooklyn Kiev LLC to develop and manage a multi-commodity terminal in Odessa as it expands in one of the world's top grain exporters, Reuters reports.
While Louis Dreyfus is already active in shipping grains from the Black Sea - a region which accounts for about a quarter of global wheat volumes - the terminal will help it to compete with rivals such as Bunge which already has an export facility there.
Louis Dreyfus said in a statement it plans to ship its first grain cargo through the terminal in the coming months. Once completed, in around August 2014, the terminal will have total grain storage capacity of about 240,000 tonnes.
The facility will export corn, wheat and barley as well as oilseeds and exports are likely to go to Europe, Africa and the Middle East.
"The substantial growth in Ukrainian grain production and exports, which is expected to continue in the coming years, driven by higher yields, increasing corn crops and more efficient farming operations, requires efficient export channels," said Jean-Marc Foucher, chief executive of Louis Dreyfus Commodities for Europe and the Black Sea.
Note: Louis Dreyfus, global merchandiser of commodities, major asset owner and processor of agricultural goods - helping to feed and clothe up to 500 million people, originating, processing and transporting approximately 70 million tons of commodities each year.
Brooklyn Kiev LLC is a leading shipping services company based at Odessa on the Black Sea.