Pan Ocean Signs Acquisition Agreement for US Grain Terminal... Accelerating Grain Trading Business

Pan Ocean vessel

[Asia Economy Reporter Yu Je-hoon] Pan Ocean is accelerating its grain trading business. On the 13th, Pan Ocean announced that it signed a contract on the 11th through its U.S. subsidiary to acquire 36.25%, the entire stake of U.S. EGT held by Itochu International. EGT currently owns and operates a state-of-the-art export terminal located at Longview Port in Washington State and four supply facilities in Montana.

Pan Ocean expects that once this acquisition is completed, it will be able to establish a foothold for its grain business to enter the global market by strengthening relationships with major grain companies that control more than 80% of international grain distribution.

The company also explained that this large terminal will help strengthen South Korea's food sovereignty. It is expected that direct grain purchases will become possible by securing logistics and distribution facilities capable of transporting grains from major producing countries to South Korea.

A Pan Ocean official stated, "Even during times of sharp grain price increases caused by supply instability in the international market, it will be possible to procure the necessary quantities from overseas, breaking through the high entry barriers of the global grain market and securing stable national food resources."

Meanwhile, Pan Ocean recorded sales of 558.8 billion KRW and an operating profit of 37.8 billion KRW in the first quarter. These figures represent a 4.5% increase and a 15.8% decrease respectively compared to the previous year. The first quarter is traditionally an off-season for shipping, and the market downturn is attributed to a sharp drop in iron ore supply due to rainfall in Brazil and cyclones in Australia, as well as lockdowns in major importing countries such as India.

A Pan Ocean representative said, "We will continue efforts to maintain the current profit trend by actively responding to rapidly changing market conditions, including unpredictable crises like the COVID-19 pandemic, through profitability-focused chartering operations and thorough risk management."

This content was produced with the assistance of AI translation services.