South Korea’s POSCO Daewoo has entered into an agreement with Ukraine’s logistics company OREXIM to jointly develop and manage a grain terminal at Mykolayiv Sea Port.
As agreed between the two sides, POSCO Daewoo will take a 75% share in the grain terminal which is to be completed and commissioned by July 2019.
The terminal has a storage capacity of over 140 thousand tones and is based at the Mykolayiv Milling Complex on the Black Sea. It is expected to have a capacity of 2.5 million tons a year.
A stake in the terminal would improve South Korea’s food security, POSCO Daewoo said, adding that, with the deal, the company would be able to control the logistics through the purchase, inspection, storage and shipment of Ukrainian production grain, reduce the risk and enable efficient inventory management.
In addition to grain terminals, Orexim Group operates two logistics firms and is the country’s largest sunflower oil exporter.