While
river cargoes barely turn a profit for the company, its CEO says it’s
important to have a ready-to-use alternative in case Russian attacks cripple
Odesa’s ports again. He also expects it to have the knock-on effect of
discouraging Russian strikes on Black Sea terminals as it makes such attacks
less debilitating to the export industry.
“The very fact that we have alternatives provides protection
for Odesa ports,” Nibulon CEO Andriy Vadaturskyy said in an interview.
That’s “because Russia will understand that its spending for missile strikes
will not deliver the effect they look for and the shipments will not stop.”
Ukraine is a key grain supplier, sending staples like wheat
and corn around the world, most of which traditionally goes via the Black Sea.
Using whatever export routes are available since the war began has helped to
keep a lid on global prices and bring in vital income for Kyiv.
The country’s deep-sea ports have continually been attacked
by Russia. River operations that send smaller ships to destinations such as
Europe or Egypt, or to Romania for transshipment, have also been attacked. A
missile hit a Louis Dreyfus facility in Odesa on Wednesday, though
the company said there should be no material disruptions to terminal
operations.
Half of Nibulon’s shipments currently go through the Black
Sea and half via the Danube River, where export costs are about $6-$7 a ton
higher.
Nibulon’s Danube routes are currently operating at about a
third of capacity, Vadaturskyy said. The unused capacity could be crucial if
traders need to suddenly switch more volume away from Black Sea terminals.
“We should not think that exports through Odesa ports are
guaranteed,” the CEO said. “This is the right time to prepare for any
challenges and have alternatives when the economy suffers.”
