ADM expands Danube River export network
Posted: 2 August 2011 | ADM | No comments yet
ADM, announced a strategic expansion of its grain origination, storage, transportation and export operations along the Danube River…
Archer Daniels Midland Company (NYSE: ADM), through its affiliate Alfred C. Toepfer International G.m.b.H. (ACTI), today announced a strategic expansion of its grain origination, storage, transportation and export operations along the Danube River in Romania. The project includes 12 grain elevators along the Danube, one inland-storage elevator in Western Romania and a joint-venture export elevator in the Black Sea port of Constanta.
“We see great opportunities to increase our origination and transportation capabilities along the Danube River in Romania, which has become a net exporter of grain and oilseeds over the past several years,” said Gary L. Towne, chairman of the management board of ACTI. “The Danube River export project creates an end-to-end network, giving us the ability to originate crops directly from farmers, transport and store them, and ultimately export them to markets around the world.”
The network, which is similar to ADM’s origination-through-export networks along the Paraguay River and Mississippi River, includes three river elevators at Giurgiu, and one river elevator each at Braila, Constanta, Corabia, Oltenita, Orsova and Zimnicea. ACTI is also constructing new elevators at Calarasi, Giurgiu and Moldova Noua and has acquired a barge fleet to connect the network of river elevators to the joint-venture export elevator recently finished in Constanta. In addition, ACTI has plans to construct elevators at Borduşani, Corabia and Galati.
“This project is strategically important as we expand our origination network in Eastern Europe,” said Towne. “The storage facilities and export elevator are well positioned to give us additional capacity to move crops along the Danube River and to the Black Sea, while the addition of Toepfer-owned barges provides us with greater control of our supply chain and helps us achieve favorable transportation margins in what can be a volatile market,” said Towne.
Since its founding in 1919, Alfred C. Toepfer has been active in trading grain, oilseeds and feedstuffs. Today, Toepfer International is headquartered in Hamburg, Germany, with 36 branch offices around the world. More than 2,000 employees trade more than 42 million tons of commodities annually. ADM originally invested in ACTI in 1983, and today owns 80 percent of the company, with the remaining 20 percent owned by French farming cooperative Union InVivo.