22 Nov 2010 17:04

FESCO may build grain terminal at Vladivostok

MOSCOW. Nov 22 (Interfax) - Russian shipping group FESCO may build a grain terminal at Vladivostok Commercial Sea Port by 2013, Vice President Vladimir Korchanov told Interfax.

"We may by 2013, but the dates are subject to change. Everything depends on our Japanese partners, who would be the end buyers of the grain," Korchanov said.

In 2009 FESCO signed a cooperation agreement on construction of a grain terminal at the port with Siberian Agrarian Holding. The two organizations agreed to jointly develop the project, which would be used to ship from SAKhO in Novosibirsk region.

Itochu Corporation, Sojitz Corporation and Mitsui & Co would be the buyers.

FESCO President and chief beneficiary Sergei Generalov told journalists last week that the project would cost an estimated $30 million-$40 million. The terminal would initially have capacity to ship 1 million-2 million tonnes a year.

"We have a certain number of railroad grain cars [several hundred], the project has received preliminary approval from the supervisory board of the port of Vladivostok, on construction of a grain terminal. More design work is planned for next year," Generalov said.

"We are buying grain cars, we will invest in terminals in the grain producing areas and in the appropriate ports, in order to create an integrated chain," he said.

Generalov did not specify how much rolling stock the company would buy.