Ukrainian grains still using Danube as gateway to Romanian Black Sea port
28/09/2022 16:32
By Luiza Ilie
BUCHAREST, Sept 28 (Reuters) - Ukraine continues to ship
grain across the Danube to the Romanian Black Sea port of
Constanta even after some of its own ports reopened, and the new
routes are likely to remain, the deputy chief of freight
logistics group TTS said on Wednesday.
Ukraine's grain exports slumped after Russia invaded the
country on Feb. 24 and blockaded its Black Sea ports, driving up
global food prices and prompting fears of shortages in Africa
and the Middle East.
The country, one of the world's leading grain exporters, was
forced to find alternative routes by train via its western
border or through its small Danube river ports of Reni and
Ismail into Romania.
Those routes are still being used even after three Ukrainian
ports reopened under a U.N.-backed safe passage deal, as too few
ships are arriving in Ukraine.
"Some of the traders we deal with have reduced their
operations at Reni and Ismail, but the flows we have created are
still going and we see them going even after the war ends," TTS
deputy chief executive Ion Stanciu told Reuters in an interview.
"Our grain volumes are slightly lower but the pace is almost
the same as before."
TTS Group TTS.BX handles agricultural products, minerals
and chemicals across the Danube river and in the Black Sea port
of Constanta. It operates the largest fleet of barges on the
Danube, with a transport capacity of 800,000 tonnes, while its
grain silo in Constanta can store up to 110,000 tonnes.
Since the war started, the group has transported nearly 1
million tonnes of cargo to and from Ukraine, with grains
accounting for just under half of the total, Stanciu said.
TTS director for investor relations Gabriel Techera said the
company had implemented a logistics chain based on two offshore
buoy terminals in Constanta port, fast-tracking the loading of
grain from barges to ships.
The company has also invested over 10 million euros this
year in its fleet. It has a full-year investment target of 20.1
million euros ($19.35 million).
Ukraine has sent roughly 4.5 million tonnes of grains to
Constanta since the war started, the port told Reuters.
TTS, which listed on the Bucharest Stock Exchange last year
and was included on an FTSE Russell index, saw its turnover rise
46.9% on the year in the first half, and a 28.5% jump in the
volume of grains it handled.
Increased demand and a jump in tariffs have helped offset
higher operation costs, including steel and electricity prices,
Stanciu said. An additional growth boost will come from
contracts to bring coal shipments to Romania, Serbia and Ukraine
ahead of winter. The company was also actively looking at
potential acquisitions of ports or fleets.
($1 = 1.0385 euros)
(Reporting by Luiza Ilie; editing by David Evans)
((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie;))