Strategy development 2018
Future outlook:
Metal & mining
In 1Q 2018, we are planning to continue our trading activities, with an expected shipment of 130-150 k metric tons of metal products originating from CIS area. Our capacity allows us to reach up 500 000 tons per year, which we will be happy to achieve.
Our suppliers, shippers and forwarders showed themselves as trusted counterparties, and since we have passed all of the KYC procedures with the suppliers and customers and we can operate in-full-force.
Shipping and chartering services
Since we are an active consumer of shipping services, we aim to integrate a shipping business to the scope of the products we offer to the customer. This way we are fully integrated in the process and can provide logistics solutions to our customers. That would decrease our costs and will provide us an insight to the shipping market, where we can get additional knowledge and understanding of the processes, which will end up in topping our added value to the customer.
Agricultural commodities
According to our research, we see an opportunity to purchase sunflower oil (and derivatives: mill cake, oil cake) originated from Ukraine and export it to ABCD traders. We aim to start our operations in early 2018, on the equity-based trading. Our intention is to onboard small local suppliers as customers, so we can start with small shipments (we use the same trading strategy and modelling as we have accomplished with the metal trading counterparties).
Our target is to ship 1,500 tons of oil per month on a roll-over basis. That would also allow us to use derivative products.
Port stewardship
We understand that CIS market is a high-risk area, so we want to help our partners (banks, suppliers, customers) to mitigate some of the risks.
One of the major risks and complains from the banks and off-takers are the fake shipping and port documents (Forwarders Certificates of Receipt) that are provided to either financing banks or off-takers.