Ukraine requires 2.7 bln USD of investments for development of grain logistics and granaries modernization

Ukraine requires 2.7 bln USD of investments for development of grain logistics and granaries modernization

Ukraine requires 2.7 bln USD of investments for development of grain logistics and granaries modernization

The FINANCIAL -- Ukraine requires 2.71 bln USD of investments for development of the river and the railway grain logistics, as well as modernization of grain storage facilities, declared Oleg Nivevsky, Agricultural Policy Advisor at the World Bank Group, on May 28, during his speech at the roundtable discussion on development of the grain market of Ukraine in terms of the new agricultural policy, within frames of the international conference "Grain Forum & Maritime days in Odessa -2015".

In Ukraine, the logistics costs total nearly 40% of the export price structure for agricultural products. But in France and the USA, the index totals nearly 10% only, said the expert, according to APK Inform.

According to him, the World Bank estimated the sums of investments in river transportation of Ukraine at 570 mln USD, which would allow transporting additional 7 mln tonnes of grains by the river. The profitability of such investments is estimated at 21%.

The rail transportation requires 640 mln USD of investments, which would allow increasing grain export volumes by 10 mln tonnes. The profitability of such investments totals 22%, said O.Nivevsky.

According to experts, the largest volume of investments is required for development of grain storage facilities - 1.5 bln USD, which would allow increasing the storage capacity of grains in Ukraine by 6.4 mln tonnes. The profitability of such investments is estimated at 24%.