Ukrainian grain trader Nibulon has started expansion of its Mykolaiv transhipment terminal in southern Ukraine with new grains and oilseeds storage facilities.

Having received a construction permit at the end of October, specialists were now performing preparatory works at the site sitting on the Southern Buh River, alongside site planning and ramming piles, World Grains reported on 27 November.

Once completed, the Mykolaiv terminal would be able to store seven different crops separately and simultaneously, in addition to being able to receive all crops and ensuring continuous transportation of agri products along the river, the company said.

In total, six silos of 7,200 tonnes each would be mounted at the site, with total grain capacity of the site reaching 173,000 tonnes upon completion, which was scheduled for February 2018.

In addition to upgrading the Mykolaiv site, Nibulon in August announced it was planning to build at least 10 additional transhipment terminals on Ukraine’s rivers, including the Southern Buh and Dnipro.

The projects are funded in part by a US$100M loan package awarded to Nibulon in June for the improvement of Ukraine’s grain transportation capacity by the International Finance Corporation (IFC), a development institution which is part of the World Bank Group.

“Last year, we managed to optimise transport costs for grain delivery, reduce delivery times and free up roads in several regions. In the next two to three years, we plan to create a modern system to store and transport grain,” Nibulon CEO Oleskiy Vadatursky explained in June.

Nibulon sources its agri commodities from more than 4,700 farmers across Ukraine and provides storage, transportation, cleaning and drying services.

The company said it was actively investing in developing river transportation, providing a cost-efficient and more environmentally-friendly option to truck and rail transport.

Ukraine is a global leader in producing grains and oilseeds, according to IFC, accounting for 10% of global wheat, 15% of corn and 20% of barley trade.