Romanian port can ship more Ukraine grain after collapse of Black Sea deal

Comvex SA

21/07/2023 12:23

By Luiza Ilie
       BUCHAREST, July 21 (Reuters) - Romania's Constanta port,
Ukraine's main alternative route for grain since Russia's
withdrawal led to the collapse of the Black Sea shipment deal,
has capacity to handle extra cargoes until mid-August, the head
of the port's business association said.
    He added operators were also seeking to increase capacity.
    Even before Russia on Monday quit a safe passage grain
corridor through Ukraine's own ports, Constanta had emerged as
the biggest alternative shipping route. It has handled roughly a
third of Ukraine's grain exports since the start of the war.
    Transit pressure will mount on Constanta, which
traditionally handles Romania's crop exports and those of its
landlocked neighbours, including Hungary and Serbia.
    Overall, it handled 15.25 million metric tonnes of grains in
the first six months of this year, a 24.5% increase on the same
time last year, the Constanta Port Authority told Reuters. 
    Ukrainian grains accounted for 7.5 million tonnes of the
total. By comparison, Romanian port operators handled 8.6
million tonnes of Ukrainian grain in the whole of 2022.
    Viorel Panait, the manager of port operator Comvex  CMVX.BX 
and the president of the Constanta Port Business Association,
told Reuters a lag in domestic grain harvesting and the
reluctance of some Romanian farmers to sell their crops at low
prices meant capacity would be available for Ukrainian grain
until mid-August.
    "Harvesting in Romania starts slightly later than in
Ukraine, which generates a pause between the two crops," Panait
said. "And some Romanian farmers are still holding onto their
crops, so sales are stagnating at the moment."
    "This creates an availability of logistic capacity that
Ukraine could benefit from."
    Panait also said operators of grain terminals have increased
investment in equipment and management to boost operating
capacity compared with the start of the war. At its peak so far,
Constanta handled 25 million tonnes of grain per year, which
Panait said will be exceeded in 2023.
    "There is an accelerated course and everyone on it, the
state, the port authority, port operators aim to boost operating
and transit speeds, and the grain quantities," he said. 
    Panait said Comvex, which doubled its barge unloading
capacity last year, is raising its grain storage capacity by 25%
to 250,000 tonnes in an upgrade expected to take about eight
months. 
    Freight logistics group TTS  TTS.BX , which handles
agricultural products, minerals and chemicals on the Danube
river, completed the takeover of Constanta port solid bulk cargo
operator Decirom S.A. earlier this month. TTS said it will
invest 10 million euros ($11.12 million) to increase its
operating speed by 2024.
    Panait also said some port operators are using a digital
system, which has reduced the time required to process customs
statements to 30 minutes from up to 48 hours.
    Ukraine has boosted capacity at its Danube ports of Reni and
Izmail, and talks were being held with railcar operators on a
new reloading system at the Ukrainian-Romanian border crossing
of Vadul Siret-Dornesti, Panait said.
    "We're talking real progress."
    Ukraine and Russia are major global grain exporters, and
Romania is one of the European Union's biggest growers.
    It is one of five eastern EU countries that experienced an
influx of Ukrainian grain as a result of Russia's invasion,
leading the EU to approve temporary restrictions that meant
grain could only transit through the countries.
($1 = 0.8991 euros)

 (Reporting by Luiza Ilie; Editing by Barbara Lewis)
 ((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))