Russia. UGC keeps investing in grain logistics 

United Grain Company (UGC) has summed up the results of a competition for designing a generic model of a freight consolidation hub. The contract cost is RUB 1.345 Ml. UGC intends to set up 10-15 grain freight consolidation hubs in grain surplus regions by 2024. They will be set up on the basis of the company’s silos. The freight consolidation hubs will make it possible to accumulate grains and then dispatch them to ports for export.

By July 2021, UGC is planning to introduce a system of grain block trains. It is expected that by that time Novorossiysk Grain Plant (NGP, controlled by UGC) will be already receiving two own block trains a day. One train will consist of 48-54 railcars, each accommodating 75 MT. The company announced before that the turnaround of railcars would average 1.4 times a month.

According to UGC’s calculations, grain delivery by this method will save up to RUB 300-500/MT. It is planned to expand NGP’s grain handling capacity to 10 MMT by 2023 (now it approximates 7 MMT) and to 15 MMT by 2024, UkrAgroConsult reports.

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