South Korean Posco Daewoo acquires grain terminal in Ukraine

South Korean Posco Daewoo Corp. signed on February 12th an agreement for the purchase of a grain export terminal in the port of Mykolaiv, thus becoming the first Korean entity to own the operating rights to a grain storage facility overseas, Pulse informs.

The trading arm of steelmaking conglomerate Posco signed an agreement with Ukrainian logistics firm Orexim Group to acquire a 75 pct stake in its grain export terminal. The financial terms of the deal were not disclosed.

When completed in July, it is expected to have a capacity of 2.5 million tons a year, handling mostly corn, wheat and soybeans.

Posco Daewoo said the deal would also help contribute to Korea’s food security. The country’s grain supply relies heavily on exports, with its self-sufficiency of corn and wheat in the 1 pct range. In 2017 alone, it imported 10 million tons of corn and 5 million tons of wheat.

Previously, the Ukrainian Sea Ports Authority (USPA) and Louis Dreyfus Company (LDC) planned to sign an agreement to increase cargo turnover in Odessa seaport. The Acting CEO of USPA Raivis Veckagans informed the authority participates in the implementation of three major investment projects in the port of Odessa.