POSCO Inter "Partial Resumption of Ukraine Grain Terminal Operations"

Aerial view of POSCO International's grain terminal in Ukraine.
Photo by POSCO International

[Asia Economy Reporter Hyunseok Yoo] POSCO International recently partially resumed operations of its grain terminal in Ukraine as part of efforts to respond to the global food crisis.

According to POSCO International on the 2nd, the company recently partially resumed operations of the grain terminal at the Mykolaiv Port in Ukraine, which had been suspended since Russia's invasion in February. This was done in response to requests from client companies concerned about the collapse of the supply chain for Ukrainian grain.

The volume shipped this time was about 2,000 tons of wheat, and currently, the grain terminal stores 115,000 tons of wheat, corn, barley, and other grains. The maritime supply route using ships is currently blocked due to the blockade of Black Sea ports. However, transportation of grain to the western border regions of Ukraine via land routes such as Izov, Badulsiret, and Uzhgorod remains possible.

POSCO International's grain terminal in Ukraine suspended operations following the Russian invasion in February. Due to the government's travel ban to Ukraine, the company's staff stationed in Ukraine temporarily returned home. They have been managing equipment and facilities while communicating with local employees through remote work.

POSCO International plans to gradually expand land-based shipments while prioritizing employee safety, as the war enters a prolonged phase and major countries' embassies return to Kyiv. July and August mark the harvest season in Ukraine, a critical period determining the year's agricultural output. Despite the wartime situation, crops such as wheat and corn are being cultivated in the southern regions, and the company intends to provide receiving and storage services to minimize damage to farmers and the industry.

The grain terminal operated by POSCO International in Ukraine was completed in September 2019. Until February, it exported approximately 2.5 million tons of grain to Europe, North Africa, and the Middle East.

In October 2020, Ukrainian wheat was supplied to South Korea. This was the first case of grain imported through an overseas grain export terminal owned by a Korean company, contributing to securing a stable supply system for overseas grain.

POSCO International has set a goal to expand its core food business by increasing grain handling volume to 25 million tons and sales to 10 trillion won by 2030.

Although the value chain connecting farms, processing, and logistics has been temporarily halted due to the Ukraine situation, the company plans to develop businesses in other origin countries such as North and South America to establish a stable grain procurement system. Additionally, it plans to collaborate with promising Ag-Tech companies to respond to changing trends in the agricultural sector.

A POSCO International official stated, "The global supply chain crisis has emphasized the importance of food security, and the new government has also presented 'securing food sovereignty' as a national agenda. At this critical time, public-private cooperation is urgently needed, including government support for private companies' overseas investments through priority supply rights via stockpiling system improvements and joint overseas investments."

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