POSCO International has become the first company in Korea to build a grain export terminal overseas as it went into full operation. The recent construction project is part of POSCO’s top 100 tasks supported by POSCO Chairman Choi Jung-woo, and considered to contribute to Korea’s food security initiative.
POSCO International announced on Wednesday that it hosted an event to celebrate the completion of the grain export terminal in the southern Ukrainian city of Nikolaev. The event was attended by several guests such as POSCO Daewoo CEO Kim Young-sang and Orexim Group Chairman Yuri Budnyk. The grain export terminal is a massive grain warehouse built on ports and will be capable of shipping an annual amount of 2.5 million tons of grain such as wheat, corn and soybeans. POSCO International will be able to store grains purchased at low prices and sell them at higher prices.
POSCO International has share of 75 percent as the operator of the business, while 25 percent is owned by Orexim Group, its local partner. Orexim Group is a leading logistics company in Ukraine with loading share of 30 percent in Ukraine’s sunflower oil exports.
Ukraine is an emerging exporter that has seen grain production double from 40 million tons in 2007 to 77 million tons in 2017 and export volume multiple by five times from 8.5 million tons to 43 million tons. In particular, around 90 percent of the country’s grain exports are shipped from ports in the Black Sea, of which 22.3 percent is exported by Port Nikolayev.
“The grain export terminal will enable stage-specific control by grain procurement, inspection, storage and shipping of grains produced in Ukraine. With better capabilities as grain trader, we will be able to contribute to Korea’s food security, which currently has self-sufficiency of grains at 24 percent,” said POSCO International.
Seok-Jun Bae email@example.com