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Estonian logistics business may benefit from the grain shortage
11.08.2010 12:24 "Agro Perspectiva" (Kyiv) —
Russias decision to stop exporting grain until the end of the year and the current high market price of grain may bring benefits to the Estonian logistics sector, says Ain Kaljurand, CEO of Port of Tallinn.
Kaljurand told aripaev.ee that Russias decision makes perfect sense since according to current forecasts, Russia will be able to harvest only 70 to 75 million tons of grain this year. In comparison, last years harvest was 100 million tons. «One positive aspect of this decision is that high market price of grain is creating opportunities also for Estonia,» he said.
Kaljurand said that interested parties are already studying possibilities. For instance, Kazakhstan plans to replace 2 million tons of reserve grain and is actively seeking channel. Since Port of Tallinn is capable of handling dry bulk vessels of up to 150,000 tons, representatives of Kazakhstan already met with executives of Port of Tallinn in early summer. Such vessels enable to send the goods also to faraway destinations. «I am hopeful that we will get the contract,» said Kaljurand.
Although this years harvest in Kazakhstan at 21 million tons is likely to be a third smaller than last year, the country plans to export up to 7 million tons of grain this season.
The Finnish state is at present renting the grain terminal in Muuga port for keeping 200,000 tons of its grain reserve since the Finns simply dont have a suitable storage for keeping grain. Finland also obtained a special permission from Brussels for storing its grain reserve abroad.
«Although the transport of grain from Finland to Estonia will cost the Finnish state millions of euros, Muuga is one of the largest terminals on the Baltic Sea and can accommodate around 300,000 tons of grain. It is also close to Helsinki,» explained Reno Paju, senior specialist of the Estonian ministry of agriculture, the reasons why Finns use Muuga to store their grain.
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