NLGC Group of Companies signed 5 strategic contracts at the EEF-2023

In just a few days of the VIII Eastern Economic Forum, the NLGC Group of Companies held substantive talks with Russian and Chinese companies and signed 5 strategic contracts at once. The same-name New Land Grain Corridor program is designed to increase and diversify the supply channels of Russian grain to the largest markets of friendly countries.

The FET Production-Export Company has signed 2 contracts for the production and supply of grain, legumes and oil crops to China. Contracts until 2032 with the possibility of extension were concluded with the Chinese trading company Noble Home and the Chinese transport and Logistics Company Trans Eurasia (Tianjin) International Logistics. Taking into account these orders and the 12-year contract, the largest in Russia, previously signed with the Chinese state corporation China Chengtong, the FET long-term contract portfolio has reached 100 million tons.

NLGC LLC and Port Infrastructure Development Center JSC launched a joint implementation of a project unique for Russian railway logistics. The transport and logistics hub (Container Terminal Zabaikalsk JSC) will appear on the border with China and become the implementation of the second stage of infrastructure development of the Grain Terminal Zabaikalsk within the approved concept "Grain +".

The effect of the project joint implementation is enhanced by the largest Land Grain Fleet in Russia, created by the Grain Terminal Zabaikalsk and the Chinese company Guangdong BestCon Intelligent Equipment, capable of transporting up to 600 thousand tons of grain at a time (or up to 8 million tons per year). The Land Fleet, consisting of 22,000 specialized grain containers manufactured according to the technical specifications of the NLGC Group, is capable of transporting a wide range of cargo in both directions.

NLGC LLC and the International Investment Company Zhongchentong (China Chengtong International Investment Co., Ltd.) have signed an agreement on the joint implementation of a project to create a logistics hub in the Jewish Autonomous Oblast – Grain Terminal Nizhneleninskoye – Tongjiang. This document is a continuation of the current agreement between the parties on strategic cooperation and expansion of mutual trade and the next step in the implementation of the New Russia-China Land Grain Corridor program, supported by the leadership of the two countries. The total investment in the construction of the Nizhneleninskoye – Tongjiang Grain Terminal will amount to 15 billion rubles.

For reference:

 New Land Grain Corridor Group of Companies created the first agro-industrial holding in Russia, which has implemented and successfully develop the mechanism of grain "contract production" to realize the production potential of 32 million ha of arable land in the Urals, Siberia and the Far East, capable of doubling production volumes to more than 60 million tons of grain per year. The group is an operator developing modern grain logistics infrastructure facilities with a total capacity of more than 18 million tons of grain per year. The Group of Companies will ensure stable supplies of more than 15 million tons of grain per year to the markets of friendly countries of Greater Eurasia. The group of companies includes Grain Terminal Zabaikalsk LLC, Production-Export Company FET LLC, Container Terminal Zabaikalsk JSC.

 Grain Terminal Zabaikalsk LLC is a specialized full-cycle land grain terminal. It is a project of international importance and a key element of the New Russia-China Land Grain Corridor program. This facility, designed for a capacity of up to 8 million tons per year, ensures a profitable and short route for the export of grain products from the Urals, Siberia and the Far East to China by solving the technical problem of the different gauge railways of the two countries.

 The Production and Export Company FET is an authorized operator of the New Land Grain Corridor program for the development of grain "contract production" and trunk elevator infrastructure in the Urals, Siberia and the Far East. The company owns formula pricing technology, advanced scientific research in the field of crop production, and is the holder of export contracts.