Uralkali Trading and Ultramar Signed a Cooperation Agreement
Uralkali Trading – a wholly-owned subsidiary of Uralkali (the Company; Moscow Exchange: URKA), one of the world’s largest potash producers, and Ultramar, a major logistics company and container operator in the ports of the Russian North-West, have signed a Memorandum of Cooperation. The signatories were Alexander Terletsky, member of the Management Board and CEO of Uralkali Trading and Andrei Bonch-Bruevich, CEO of Ultramar, during the St. Petersburg International Economic Forum.
According to the Memorandum, the parties have agreed on core principles for future partnership in Ultramar’s project to build port infrastructure facilities for transshipment of additional volumes of Uralkali’s potash in the new terminal in Ust-Luga Port. This will be followed by construction of a multifunctional terminal with a potential fertilizer transshipment capacity of up to 12 million tonnes per year in order to meet the requirements of largest domestic producers of fertilizers.
Alexander Terletsky, Uralkali Trading CEO, commented:
— Traditionally, Uralkali transships its export volumes exclusively in Russian ports, using its own terminal – Baltic Bulk Terminal in St. Petersburg. However, due to modernizing of our production capacities, we would need another serviceable port. In this regard we are considering in the future a signing of long-term contract with Ultramar, as the company is planning to combine the transshipment of the production of major domestic fertilizer producers, which will provide all the participants with an additional advantage in terms of transshipment cost.
Andrei Bonch-Bruevich, Ultramar CEO, commented:
— We are grateful to one of the world’s leading producers of potash for their trust in us. Our collaboration with Uralkali will add maximum synergy to our partners – producers and exporters of fertilizers - and will also give them many competitive advantages. The global agricultural market requires numerous brands of fertilizers. Having potash transshipment in our terminal will enable the buyers to meet the demand in a flexible manner thanks to the availability of combined vessels with loading possibility in the same terminal of nitrogen, phosphorus and potash fertilizers produced by Russian companies. The technological solutions we intend to use in the design of this terminal will make it possible for the transshipment capacities to match the ambitious development plans of domestic producers.