July 11, 2012

South Korea's STX actualises US grain terminal construction

In joint efforts with US-based Bunge and Japan's Itochu in order to secure food resources, South Korean conglomerate STX Group completed construction of a grain terminal in the US.

STX announced Tuesday (July 10) that it held a ceremony Monday (July 9) (local time) celebrating completion of constructing a grain terminal in Port of Longview, Washington in the US.

STX Group's shipping affiliate STX Pan Ocean has been investing in the grain terminal construction project in Port of Longview together with Bunge and Itochu since 2009. The grain terminal constructed on a 550,000 square-metre site has storage facilities, docks, and unloading facilities. It is the first state-of-the-art facility in the US's Northwest region since early 1980, and consequently boasts larger storage capacity and faster processing than other facilities in the area. Annually, the terminal can unload up to nine million tonnes of grains such as corn, soy, and wheat.

"As an effort to strengthen Korea's food self-sufficiency, STX stepped into the grain business by securing a grain terminal, a core facility for the grain procurement system," an STX official said. Korea's grain self-sufficiency rate stands at a mere 27%, and the nation is the fifth largest grain importer worldwide as it imports 15 million tonnes of grains per annum.

STX is the first Korean company that has capacity to handle both grain distribution and shipping, and it plans to focus on creating the synergy effect among affiliates through the grain business.

STX Group will actively use its strength as the only general trader that handles staple grains including corn, soy, and wheat. STX Pan Ocean, Korea's top bulk carrier, will be able to secure stable shipping supply. STX Group forecasted that grains worth US$2 billion will be traded in the terminal this year.