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ADM expands Danube River grain export network
04.08.2011 12:34 "Agro Perspectiva" (Kyiv) —
U.S. agricultural processor Archer Daniels Midland Co, through its affiliate Alfred C Toepfer International, announced on Tuesday that it was expanding its grain origination and transportation network along the Danube River in Romania.
The network includes a total of 12 river elevators, three of them currently under construction; one inland storage elevator in western Romania; and a joint-venture export terminal at the Black Sea port of Constanta, ADM said in a release.
Three of the existing river terminals are in Giurgiu, along with one each in Braila, Constanta, Corabia, Oltenita, Orsova and Zimnicea. The three under construction are in Calarasi, Giurgiu and Moldova Noua. The location of the inland storage elevator was not disclosed.
Toepfer, 80 percent owned by ADM, also acquired a barge fleet to link the river elevators with the export terminal to mimic ADM’s grain and oilseed export networks on the Paraguay River and on the Mississippi River in the United States.
Toepfer also has plans to build three more elevators, one each in Bordusani, Corabia and Galati, bringing the total number of river elevators in the network to 15.
Nations surrounding the Black Sea, including Russia, Ukraine, Romania and Kazakhstan, have expanded grain export volumes in recent years amid rising global demand for food.
Low cost suppliers there have the added advantage of lower shipping costs to key importing nations in the Middle East and north Africa, often undercutting larger grain exporters such as the United States and Europe.
ADM did not disclose the cost of the expansion or the loading and storage capacity of the network. The timeline for the project’s completion was not immediately available.
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