During the 3rd edition of Polish Grain Day, we asked Przemysław Błażejewski, a broker from BST Brokers, for a comment on the recently canceled tenders for the construction of agroterminals in ports. What does a grain trader think about this? And for whom do we want to develop this infrastructure?
We would like to remind you that in recent weeks we have had surprising information regarding the cancellation of tenders for the construction of grain terminals. First, the tender for the lease of the agro terminal in Gdańsk, which is to be announced by the end of this year, was canceled once again. Later, the tender for the grain terminal at the Port of Gdynia was cancelled, this time it was quickly announced and a new lease procedure was announced. This caused many questions and doubts to appear in the media regarding the lack of expansion of the port infrastructure, which was sought by farmers themselves, and about Poland’s competitiveness. The Ministry of Agriculture explains that in this way it is focusing on development, increasing port capacity and the participation of Polish entities in it, i.e. the National Food Group, which, according to the government, should have a majority share in trade. Will this happen? The practitioner who asks specific questions in a conversation with farmer.pl has doubts. How does he evaluate these decisions? More in the video below.
Cancellation of tenders in ports in Poland
As our interlocutor points out, the cancellation itself may have formal reasons or the need to guarantee food security may be taken into account. He emphasizes that the war in our neighbor’s country has been going on for over two years, and our infrastructure, which was supposed to be improving, is not changing.
– Over the last two years, nothing new has happened in Polish ports regarding the expansion of port infrastructure. Apart from the investments of two port terminals, one in Świnoujście and one in Gdynia, where they already had their facilities and are modernizing their facilities. So far, we have no plans to even build or modernize the facility. Only these proceedings will be restarted. The next ones – promised that they will be launched. My assessment is bad because we lost over two years of time when we could have brought goods in transit to Polish ports and transhipped them. At the same time, strengthening the position of Polish ports. This would be beneficial for Polish farmers – Przemysław Błażejewski answered us.
National Food Group and the construction of agroterminals
The idea behind canceling the tenders was to support Polish capital, specifically KGS. – We will do everything, at least I will also make every effort to ensure that the National Food Group is prepared appropriately for the tender competition, so that it can also take part in all these competitions and so that it can also participate in these exports. I think this is good information, which indicates the right policy in the right direction – of the Ministry of Agriculture and the entire government, which is to break up the monopolies that today have a strong grip on everything – said Michał Kołodziejczak, Deputy Minister of Agriculture at the end of May, about strengthening the position of KGS.
Does it really have a chance to manage well at the Port of Gdynia?
Looking at the tender conditions, I do not see any possibility for the National Food Group to take part in this tender on its own. It will have to participate in a consortium – Błażejewski tells us.
What about the agricultural port in Gdańsk?
– If we are talking about the tender for the agricultural port in Gdańsk (…), I do not know any government agency in Europe that purchases grain and trades it on external markets. And I think this is turning the situation on its head, because if this idea doesn’t work out, what will the next stage be? Buying ships? – explains our interlocutor. And he asks what will happen in three years, if these companies will be generating losses?
If the National Food Group were to have access to ports, it should be done under the terms of the tender, it should be openly stated that the operator must take into account the reloading quantities for KGS, and not cause the state entity to disrupt another branch of economic activity, which is port reloading – Przemysław Błażejewski tells us.
Agroport in Szczecin
In recent days, there has also been a lot of talk about the publication of “Rzeczpospolita” about the sale and planned closure of a private grain terminal in Szczecin. There was talk of handing over the market to Germany. What does the practitioner think about this? Does this greatly weaken our export opportunities?
– On a general scale it doesn’t matter. Let me remind you that so far, Polish ports have transhipped 5 to 6 million tonnes of agro products for export before the outbreak of the war. Over the last two years, 10-12 million tons on the existing infrastructure. Assuming that this terminal handled transshipments of 0.5 million tonnes per year, it is not significant on this scale, he explained.
What is the importance of the expansion of the port in Świnoujście?
According to Błażejewski, this is a logistically difficult port. Due to its location, the costs of getting there will be high. The expert also emphasized that Polish ports and port terminals require investment and modernization. Poland has an export surplus of approximately 10 million tons, of which approximately 50-60 percent leaves by land (on wheels and by rail), the rest through the port, i.e. approx. 5-6 million tons.
Is Poland afraid to talk about transshipment of Ukrainian grain?
– If we are now to have terminals with a reloading capacity of 12-14 million tons, if all these investments are implemented, I ask: for whom? If we do not take into account and no one talks about it, we want to reload the transit of Ukrainian grain. However, other countries are not afraid and are expanding, says Przemysław Błażejewski at the end.
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