* Terminal set to be completed in August 2014
* Project set to increase control on export flows
* Glencore, Bunge have invested in Black Sea terminals
By Emma Farge and Tom Miles
GENEVA, Oct 17 (Reuters) - Trading giant Louis Dreyfus
Commodities said on Thursday it has entered a joint venture
agreement with Brooklyn Kiev LLC to develop and manage a
multi-commodity terminal in Odessa as it expands in one of the
world's top grain exporters.
While Louis Dreyfus is already active in shipping grains
from the Black Sea - a region which accounts for about a quarter
of global wheat volumes - the terminal will help it to compete
with rivals such as Bunge which already has an export
Glencore has also sought to increase its presence
in the Black Sea region and last year bought a 50 percent stake
in a Russian export terminal alongside Ukrainian agricultural
Louis Dreyfus said in a statement it plans to ship its first
grain cargo through the terminal in the coming months. Once
completed, in around August 2014, the terminal will have total
grain storage capacity of about 240,000 tonnes.
The facility will export corn, wheat and barley as well as
oilseeds and exports are likely to go to Europe, Africa and the
"The substantial growth in Ukrainian grain production and
exports, which is expected to continue in the coming years,
driven by higher yields, increasing corn crops and more
efficient farming operations, requires efficient export
channels," said Jean-Marc Foucher, chief executive of Louis
Dreyfus Commodities for Europe and the Black Sea.
The agreement is one of the first major deals under new CEO
Ciro Echesortu, who took over from long-serving leader Serge
Schoen in June. No value was given for the transaction, which is
subject to certain conditions and regulatory approvals.
Brooklyn Kiev LLC is a leading shipping services company
based at Odessa on the Black Sea.
Louis Dreyfus, a 160-year old company with French roots and
trading operations in Switzerland, has sought in recent years to
boost its portfolio of strategic assets to complement its
In a bond prospectus seen by Reuters in July, Louis Dreyfus
said that it had entered an agreement to build a port terminal
for agricultural commodities in the Black Sea region, without
elaborating or giving details.