The controlling shareholder in Biriu Kroviniu Terminalas (Bulk Cargo Terminal [BKT]) in the Lithuanian port of Klaipeda is looking to complete a planned deal which would allow BKT to buy shares in an adjacent terminal in the port, Nemuno Terminalas, in order to boost shipments of Belarus’ potash exports via the port.
According to a report by The Baltic Times, Lithuanian businessman Igor Udovickij, who owns a 70 percent stake in BKT and co-owns with other family members 100 percent of the shares in Nemuno Terminalas, wants to create a single terminal complex and build additional warehouses to receive increasing volumes of product from Belaruskali. The Belarus potash producer owns a 30 percent stake in BKT, and the new terminal complex would be operated under the BKT corporate umbrella.
Lithuania’s Cabinet is reported to have allowed the deal to go ahead, but the deal still needs approval from the country’s Competition Council.
Belaruskali plans to increase its potash exports via BKT from the current 12 million mt/y to some 16 million mt/y by 2024-2025, according to the report, citing Udovickij.
The Belarus producer currently is developing new production capacity, including the new 1.5 million mt/y Petrikov mine and potash plant in Belarus’ Gomel region, which is targeted to start test production in December and the Darasinsky potash mine, which is expected to have initial capacity of 8 million mt/y of ore and where construction began in May (GM Sept. 6, p. 26; May 24, p. 30).
Russian-back Slavkaliy Co.’s Nezhinsky 2 million mt/y potash mine and processing plant also is currently expected to produce its first tons in 2023 (GM July 12, p. 1). Belaruskali’s potash exports are all handled by Belarus Potash Co. (BPC). BPC is also reported to have a “partially formalized agreement” with Slavkaliy Co. to sell Nezhinsky potash (GM Sept. 6, p. 26).
Udovickij has warned that if the deal doesn’t go ahead, Belaruskali’s additional potash volumes will be diverted to other ports.
Belarus earlier this year was reported to be assessing certain Latvian ports and terminals, including AS Kālija Parks in Ventspils and Riga’s Alpha Osta terminal, for potentially handling some of the country’s potash export shipments (GM April 12, p. 27). Belarus’ authorities have also indicated they “are ready” to set up a hub for the import and transshipment of Belarus potash and nitrogen fertilizers in Russia’s Kursk Oblast (GM June 14, p. 30).