Over the past year, RGC has almost tripled the capacity of the Izmail elevator, which can now receive up to 40 grain wagons per day. Latifundist.com reports.
Due to the increase in grain receiving capacity, the cost of transshipment in Izmail compared to the ports of Greater Odesa has decreased even further – the difference is $5. Plus savings on insurance of $1.5.
Over the past marketing year, RGC elevator transshipped 180 thousand tonnes to the Danube. In fact, it made 7 turns. While last year the holding transshipped mostly its own grain volumes at the elevator, this year it provides transshipment services to other companies, on average 25-30 thousand tonnes per month.
“After the October shelling of Odesa’s port infrastructure, which damaged several vessels, the market really saw a surge in interest in the Danube ports. Some traders have redirected their cargo flows from Chornomorsk to Izmail. One of the traders also approached us about transshipment in Izmail. So, in any case, the Danube ports will have their own market niche. Moreover, they have their own advantages,” says Sergey Onufriev, Development Director of E.K.O. Group.
The fact is that traders on the Danube route incur lower costs for insurance against military risks. In addition, there is a local market for bonfires. When it comes to a small consignment of 5-6 thousand tonnes of grain, it is sometimes easier to load and ship a vessel on the Danube, in Izmail, rather than waste time accumulating large volumes of grain to ship from the ports of Greater Odesa.
