Traders may become more likely to own port infrastructure – opinion

Pavlo Fesyuk, CFO of AgroVista, shared the opinion that after this season, the industry may see a redistribution of port infrastructure owners and market consolidation.

Fesyuk spoke about this in an interview with Latifundist.

The expert noted the trend towards purchasing elevators instead of building them, suggesting that the next stage may be the purchase of port infrastructure. Fesyuk also does not rule out that after the end of the current season, there will be a change in the ownership structure in ports, and the market may switch to a model where the trader owns the entire logistics chain, including port facilities.

“The one who can build a complete and as wide a chain as possible to the end consumer — regardless of whether it is a trader or a manufacturer — will gain a foothold in the market. All other companies will remain formal, with an office on paper and hired employees,” the expert noted.

Pavlo Fesyuk also noted the intensification of the activities of large international companies, such as ADM, Bunge, Cargill, Dreyfus, etc., which are reorienting to purchases on FOB terms.

“There are no ingenious solutions in the CIF part among Ukrainian companies yet. This market is dominated by ABCD, which have port logistics in the countries of destination: COFCO – in China, Bunge – Europe, South America, Cargill – Europe, Asia. We do not have our own ports or investments in ports abroad. Even having a small plot of land in the port of Vietnam, we do not have our own port where we could receive products and organize origination directly on site,” the expert noted.

Earlier, USM reported that AgroVista attracted a $5 million loan from Sense Bank.