Baltic Agro cereal export obtains new capacities in Bega stevedoring company
As the next season of cereal export starts, Klaipėda stevedoring company Bega will have 25% higher agricultural product loading capacities which are to be implemented with respect to one of Europe’s largest agricultural group’s development plans in Lithuania.
In the beginning of the year Bega company has signed a long-term cooperation contract with Baltic Agro owned by Danish Agro international agricultural group operating in 16 European countries.
Currently the first stage of the cooperation is being implemented during which Bega is building six silos storages for storing of the cereals to be exported by Baltic Agro company through Klaipėda port. Upon the start of the export, BEGA’s storage capacities for agricultural products currently reaching 240 thousand cubic meters will be increased by 60 thousand cubic meters.
The new storages together with the station for unloading of railway wagons and vehicles, which is currently under construction, are technologically integrated into the system of Bega agricultural products loading terminal which is one of the most state-of-the-art on the Eastern shore of the Baltic Sea and operates since 2013.
Investments of Bega company in the first stage of the project reach EUR 8 million.
Baltic Agro in turn intends to focus its cereal export, which has been distributed between Lithuanian and Latvian ports so far, on Klaipėda port and increase its volume up to 500000 tons per year.
“We are very satisfied with the deal with Bega stevedoring company” says Arūnas Bielskis, CEO of Baltic Agro. “The new storages for exported cereals in Klaipėda port are of particular importance to Baltic Agro. The above will contribute to strengthening our export and import capacities in the cereal sector and we will be able to supply high quality and competitive services to our customers in buying-in of cereals.”
Baltic Agro supplies complex services and products for agriculture. Along with cereal purchase and export, the company’s activity involves a trade of feed, fertilizers, crop protection products, seeds, etc. Thus, there is a possibility that the export-import flows planned by the international agricultural group might be supplemented by new types of cargos in Klaipėda port.
According to Aloyzas Kuzmarskis, CEO of Bega, upon termination of reconstruction of quays 67 and 68, which is currently carried out by Klaipėda State Seaport Authority, new capacities for uploading of bulk cargos into ships will be implemented by Bega during the second stage of the cooperation, as well as construction of universal storages is planned behind the quays.
Upon implementation of the planned development, Bega’s capacities for accumulation of agricultural products will reach 360 thousand cubic meters at a time, i.e. about a half of the total Klaipėda port capacities in the segment.
According to Arvydas Vaitkus, CEO of Klaipėda State Seaport Authority, upon implementation of reconstruction of quays 67 and 68, the quay users will have a possibility to receive ships with larger parameters and perform loading and transportation works more efficiently.
“The changes that have been taking place in Lithuanian agriculture in recent years reveal that the segment is getting stronger in Lithuania. Today we have quite large capacities for agricultural products in the port and we are pleased that the capacities are being increased and a larger volume of cereal export is planned based on long-term contracts with the customer. Synergy of the port authority and the port customers when investing into infrastructure and suprastructure of the port is a perfect example of cooperation between the state and private businesses which enables reaching of maximum results“, says Arvydas Vaitkus, CEO of Klaipėda State Seaport Authority.
“It is not a secret that we have also had other offers at Klaipėda port. Yet, being a part of the international agricultural group cherishing long-term traditions we chose cooperation with a modern company with a large experience, which took our expectations into consideration. Moreover, the infrastructural projects being implemented by Klaipėda State Seaport Authority look credible and they will enable development of our cooperation with Bega in the future“, claims Arūnas Bielskis, CEO of Baltic Agro.
Aloyzas Kuzmarskis, CEO of Bega, is glad that Klaipėda port has managed to attract one of Europe’s largest agricultural groups and is able to provide conditions for implementing the group’s logistic and development plans.
Danish Agro group, which operates over 100 companies in 16 European countries, as well as Vietnam and China, has nearly 5000 employees. Last year, the turnover of the group reached EUR 4.2 billion. The group is represented in Lithuania by Baltic Agro which employs over 100 professionals and is one of the largest agricultural companies in Lithuania in terms of business volumes.
The total of 3.56 million tons of various agricultural products was loaded/unloaded in Klaipėda port in 2016, including 2.82 million tons of export cereals. Bega has handled around one-third of the volume.
Cereals and other agricultural products make about 30% of Bega cargo turnover. The remaining share is bulk and liquid fertilizers, mineral substances, cement, as well as other bulk and liquid cargos.