Romanian port operators racing to boost grain operating capacity

Comvex SA

20/09/2023 13:13

By Luiza Ilie
       BUCHAREST, Sept 20 (Reuters) - Romanian port operators
in the Black Sea port of Constanta are investing to boost their
grain handling capacity as Ukraine ramps up exports through its
neighbour, the manager of operator Comvex  CMVX.BX  said.
    Ukraine is one of the world's biggest grain exporters and
since Russia's invasion last year, Constanta has become Kyiv's
largest alternative export route, with grains arriving by road,
rail or barge across the Danube.
    The Romanian government has said it aims to double the
monthly transit capacity for Ukrainian grain through its
Constanta port to four million metric tons in the coming months
from virtually zero before the Russian war started.    
    In August, roughly 2.7 million tons of Ukrainian grain
passed through Constanta, Comvex manager Viorel Panait said in
an interview with Reuters. 
    Since July, when Moscow abandoned a deal that lifted a de
facto Russian blockade of Ukraine's Black Sea ports, Russia has
repeatedly struck Ukrainian river ports that lie across the
Danube from European Union and NATO member Romania.
    "You cannot count on a single means of transportation
because this leaves you vulnerable, as we have seen after the
attacks on Ukraine's Danube ports," Panait said.
    "You need truck, train and barge transport to converge."
    Comvex, which doubled its barge unloading capacity last year
and is currently in the process of raising its grain storage
capacity by 25% to 250,000 tonnes, is now working on increasing
its train processing speeds, Panait said.
    It has partnered with rail operator Grup Feroviar Roman
(GFR) on a new train reloading system at the Ukrainian-Romanian
border crossing of Vadul Siret-Dornesti.
    Panait said the system, which will become operational by
mid-October, will enable Comvex to handle an additional 120,000
tons of grains per month. The operator is also adding a second
automated quality control system, doubling its train processing
capacity.
    Comvex is also looking at a plan to unload grain from trains
to barges on the Moldovan bridge of Giurgiulesti.
    
    LOGISTICS CAPACITY
    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 year. 
    TTS director for investor relations Gabriel Techera said
earlier this week the group, which has an investment budget of
80 million euros ($85.58 million) in 2023, added two floating
cranes to its operations in early September. 
    Port operator SOCEP S.A.  SOCP.BX  said it had paid 10
million euros for new equipment at its grain terminal silo and
ship loader.
    Panait, who is also president of the Constanta Port Business
Association, 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.
    "I would say more than half of the port's 13 grain operators
are already authorized or in the process of being so."
    A government source told Reuters Constanta now had a
logistics capacity of 40 million tons of grains per year,
sharply higher than its annual record high 25 million tons set
in 2021.
($1 = 0.9348 euros)

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