Posco International, a trading subsidiary of Posco, has become the first Korean company to complete construction of an overseas grain export terminal, as it went into full operation, the firm said Wednesday.
The new grain terminal at the Ukrainian Black Sea port of Nikolayev, which is owned by Posco International with a 75 percent stake, is one of the largest export ports in the southern Black Sea. It is capable of shipping 2.5 million tons of grains such as wheat, corn and soybeans annually.
(From third left) Mayor of Nikolaev Alexander Senkevich, Posco International President Kim Young-sang, Governor of the Nikolaev Alexander Stadnik and Orexim Group Chairman Yuri Budnyk attend a completion ceremony at the port of Nikolayev on Wednesday. (Posco International)
The completion of the grain export terminal enables the Korean trading company to control the logistics of the production, inspection, storage and shipment of grain produced in Ukraine. The firm said it also laid the foundation for developing demand in Asia, North Africa and the Middle East by securing early grain procurement in the Black Sea.
Ukraine is an emerging export powerhouse, with grain production having nearly doubled from 40 million tons in 2007 to 77 million tons in 2017 and exports about five times from 8.5 million tons to 43 million tons in the same period. The nation is one of the five largest exporters of major grains such as corn, wheat and soybeans.
In particular, about 90 percent of all grains are exported through the Black Sea Port, and 22.3 percent -- the largest volume -- is exported from the port of Nikolayev, where Posco International’s grain export terminal is located.
The Korean company is to partner with Ukrainian logistics firm Orexim, which is the largest exporter of sunflower oil in Ukraine and has a dedicated terminal for edible oils and fats in the port of Nikolayev.
Posco International President Kim Young-sang said, “We are expanding our food business value chain to become the largest food resource company in Korea, with the Ukraine grain export terminal at the center.”
The trading company has increased its grain trading volume since 2015 and has expanded its business to major grains such as rice, corn, soybeans and barley.
By Shin Ji-hye (firstname.lastname@example.org)