September 28, 2023

Enhancing Black Sea Port Infrastructure in Romania to Boost Ukrainian Grain Trade – Shiv Telegram Media

Romania’s Government Invests $155.67 Million to Boost Grain Transit Capacity at Constanta Port

The Romanian government has recently announced plans to upgrade the road infrastructure in Constanta, a Black Sea port in Romania. The upgrades are part of a larger investment project aimed at increasing the transit capacity for Ukrainian grain through the port. Constanta serves as Ukraine’s largest alternative export route for grains.

The government aims to double the monthly transit capacity of Ukrainian grain to Constanta, from the current 2 million tonnes to an impressive 4 million tonnes. These upgrades are expected to further strengthen the trade relations between Romania and Ukraine.

Significant progress has already been made in this regard. Upgrades to railroad lines that connect Romania to Ukraine have been completed, and work is underway to improve navigation on the Danube River, which will facilitate the transportation of goods.

To finance these infrastructure improvements, the Romanian Ministry of Transport plans to utilize funds from the European Union. The funds will be used to repair and reinforce existing infrastructure at Constanta Port, as well as to build new roads and launch a digitized traffic management system. The estimated cost of the project is 721.3 million lei ($155.67 million), and it is projected to be completed within 36 months.

The decision to invest in upgrading Constanta Port’s infrastructure comes in response to Moscow’s abandonment of a deal that lifted a de facto Russian blockade of Ukraine’s Black Sea ports. This move by Russia has created an opportunity for Romania to strengthen its position as a key transit hub for Ukrainian grain exports.

In the first seven months of this year alone, a staggering 8.1 million tonnes of grain were shipped through Constanta Port. With certain operational changes, the head of the Ukrainian grain traders union UGA believes that exports through the port could increase to an astonishing 35 million metric tons per season.

The Romanian government’s investment in the road infrastructure of Constanta Port is an essential step towards promoting regional trade integration and ensuring a smooth flow of goods between Romania and Ukraine. The upgraded port facilities will not only boost the economy and trade relations between the two countries but also contribute to the overall stability and growth of the region.