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Kernel invests over USD 40 mln in port infrastructure
22 August 2023, 12:03
Kernel invests USD 44.15 million in vegetable oil transshipment facilities, acquiring storage assets in the port of Chornomorsk for USD 19.4 million and a sunflower oil transshipment terminal in the port of Reni for USD 24.75 million.
The acquisition in Chornomorsk remains subject to antitrust clearance in Ukraine.
"In case Ukrainian Black Sea ports remain blocked, the Group intends to use such assets as an important storage and transshipment hub to receive the sunflower oil by railway, accumulate it in storage, and then redirect sunflower oil by trucks to the Danube River port, thus reducing the logistics costs of the alternative export route," the company says in a statement.
Its sunflower oil storage capacity of 105 thou. t allows the Group not to stop crushing plants during transportation disruptions, as heavily experienced in FY2022-FY2023, and smooth down the logistics. In case Ukrainian Black Sea ports are unblocked, the assets will be used as a core deep-water transshipment base on the Black Sea for sunflower oil exported by the Group.
Kernel entered into an agreement to acquire 100% of corporate rights in Reni-Oil LLC, a 15 thou. t sunflower oil transshipment terminal in the Reni port for USD 24.75 million. It is the only terminal with proper intake, storage, and off-loading capacities among Ukrainian Danube River ports, the company marks, allowing to export of sunflower oil even in case of the blockade of the Black Sea ports. The deal is expected to be completed by 31 December 2023.
