- Unconventional Ag
Ukraine Needs US$2.7 Billion of Investments for Grain Storage and Logistics Systems
Ukraine is in need of US$2.71 billion of investments for the required development of the country’s river and railway grain transportation logistics systems and modernization of its grain storage facilities, according to Oleg Nivevsky, Agricultural Policy Advisor at the World Bank Group.
In Ukraine, logistics costs account for approximately 40% of the total export price of its agricultural exports, while in the U.S. and France, they account for only 10%, according to APK Inform.
The country’s rail system is estimated to need total investments of $640 million, which would facilitate increasing grain export volumes by 10 million tons and would generate a return on investment of 22%. Meanwhile, Ukraine’s river transport systems are estimated by the World Bank to need investments totaling $570 million, which would increase grain transportation by river by 7 million tons and would provide a 21% return on investment. The country’s grain storage is in need of the most investment at an estimated $1.5 billion, which would increase storage by 6.4 million tons, providing a return on investment of 24%.