POSCO International partially resumes operations at its grain export terminal in Ukraine

SOUTH KOREA — POSCO International, a South Korean grain trading company, has resumed its operation in Ukraine after partially reopening its grain export terminal in the port city of Mykolaiv.

Since opening the grain export terminal in 2019, as of February, POSCO International reported to have shipped around 2.5 million tons of grains from its terminal in Ukraine to North Africa, Europe, and the Middle East.

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Since Russia attacked Ukraine in late February, the operation of the terminal storing 115,000 tons of wheat, corn, barley and other grains had been suspended temporarily.

However, amid a global food crisis and growing concerns among its clients about supply chain disruptions, the company said it has shipped approximately 2,000 tonnes of wheat through land routes following the Ukraine authorities’ closure of ports in the Black Sea.

“The period between July and August is Ukraine’s crucial harvesting season,” a POSCO International official said. “Given that wheat and corn have still been cultivated in the southern region despite the war, we will offer our services to minimize damage to farmers and clients.”

Hoping to expand its food business to become one of the world’s top 10 food trading companies, POSCO has set a goal of increasing its grain handling volume to 25 million tonnes and sales to US$8 billion by 2030.

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“The importance of food security is being emphasized due to the global supply chain crisis, and the new government is also suggesting ‘Securing food sovereignty’ as a national task,” POSCO said. “It is a time when public-private partnerships such as joint investment and joint investment are urgently needed.”

With resumption of its value chain, POSCO plans to establish a stable grain procurement system by developing businesses in other countries of origin, including North and South America.  The trading company also plans to promote collaboration with ag-tech companies in response to changes in trends in the global agriculture sector.

It also intends to strengthen its value chain by linking farming, storage, processing and transportation, and create profit to increase its presence in the global grain market.

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