EBRD provided Louis Dreyfus Company with USD 35 mln loan for railcar logistics business in Ukraine
The European Bank for Reconstruction and Development (EBRD) provides up to USD 35 mln for Louis Dreyfus Company (LDC). The funds will be used to acquire up to 1,000 grain-hopper railcars, which will significantly facilitate grain-handling logistics for the company. LDC will be able to diversify its means of transporting grains from the country’s agricultural areas to its ports, the report says.
"The new railcars will reduce the volume of grain transported by trucks and will, therefore, help to lower annual CO2 emissions by 8,510 t," the Bank says in a statement.
In 2019, Ukraine is expecting a record grain harvest of more than 72 mln t, of which more than 50 mln t will be exported. Domestic grain-hopper railcars, most of which are heavily depreciated, carry 70% of all grain traffic to the country’s seaports for export.
The addition of new grain hoppers will significantly increase the effectiveness of grain-handling logistics and will strengthen Ukraine’s competitiveness in the market competition.
The project will support the company's strategy of building a reliable and efficient supply chain in Ukraine and will aim to address the existing shortage of railcars on the Ukrainian market.
