Cargill has formalized plans for a new $100 million grain terminal on the Black Sea in Ukraine.
The grain port is a joint venture with Ukraine's MV Cargo. The two parties Wednesday signed an agreement that green lights the project.
MV Cargo will fund the terminal with private money as well as a loan — currently under discussion — from the European Bank for Reconstruction and the World Bank's International Finance Corp. Cargill said it will put an "undisclosed amount" into the project. The grain terminal will be operated by the Cargill-MV Cargo joint venture.
Ukraine is one of the world's larger grain exporters, and Cargill, one of the biggest grain merchants, has long been active in the country's grain shipping.
But the new port terminal at Yuzhni, east of Odessa, will be Cargill's first in Ukraine.
Minnetonka-based Cargill will export about 70 percent of its Ukraine grain through the new terminal, which will have a capacity of 5 million tons.
The terminal will also be open to third parties.
Ukraine is currently able to ship about 35 million tons of grain from its ports, but the government wants to double the country's export capacity within the next five years, according to Reuters.
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