Establishing One of the Largest Export Grain Terminals on the West Coast
June 2, 2009
ITOCHU Corporation has agreed with Bunge North America, a major Saint Louis-based agribusiness firm, and STX Pan Ocean (America), Inc., a New York-based U.S. corporation of the largest South Korean bulk carrier, to spend more than $200 million to jointly build one of the largest export grain terminals on the West Coast.
The joint venture established by the three firms will build one of the largest export grain terminals on the West Coast at the Port of Longview, Washington. This terminal will be the first export grain terminal constructed in the United States since the early 1980s. It features a rail loop track unloading system to dramatically improve the unloading capacity, which will be the highest in the region, and state-of-the-art equipment to maximize the shipping capacity. The facility will also unload grain barged via the Columbia River, and will be able to process around eight million tons of grain every year, including wheat, soybeans, corn and by-products.
Markets in China and the broader Asian region have been growing and expanding rapidly, against a backdrop of population growth and rising income levels. In addition, the increased use of biofuels around the world has pushed up demand for grain. At the same time, consumer demands for food safety have also been rising; so ensuring a stable supply of food resources, both quantitatively and qualitatively, has become a pivotal issue for Japan and other Asian countries. This business aims to build one of the largest and most efficient export grain terminals on the geographically-advantaged West Coast through a partnership between Bunge, which runs a powerful agribusiness operation as one of the world's major agribusiness firms, STX Pan Ocean, which is developing its shipping business globally, and ITOCHU Corporation, with its network and strong customer base including the midstream and downstream fields in Japan, China and other Asian countries.
ITOCHU Corporation follows an SIS (Strategic Integrated System) strategy for the construction of the global value chain, and positions this business as part of creating the food resources supply system in the upstream field. This business is intended to provide a stable supply of grain and oil seeds for human as well as animal consumption. In addition, it will ensure the safety and security of food for consumers in the Japanese, Chinese and the other Asian markets and make a significant contribution to the construction of the global value chain.
Outline of new company
|Name of company||EGT Development, LLC|
|Location||Head office in Portland, Oregon|
|Shareholder composition||Bunge North America (wholly-owned company of Bunge Limited) 51%|
ITOCHU Corporation·ITOCHU International Inc. 29% in total
(ITOCHU Corporation 4%, U.S. corporation of ITOCHU Corporation 25%)
STX Pan Ocean (America), Inc. (wholly-owned U.S. corporation of STX Pan Ocean Co., Ltd.) 20%
|Total investment||More than $200 million|
|The number of employees||Approximately 50|
Outline of export terminal
|Location||Export elevator, Longview, Washington|
|Annual handling target||Approximately 8 million tons|
|Commencement of work||June 2009|
|Commencement of operations||scheduled to begin operations in Fall 2011|
Outline of joint companies
Bunge North America, Inc.
|Location of head office||Saint Louis, Missouri|
Wholly-owned subsidiary of the major agribusiness firm Bunge Limited
Bunge operates grain-related businesses around the world. It dominates in the grain distribution and oil businesses, particularly in South America. In September 2008, ITOCHU Corporation made a 20% investment in the two ethanol facilities owned by Bunge in Brazil.
STX Pan Ocean (America), Inc.
|Location of head office||New York|
A wholly owned U.S. corporation of STX Pan Ocean, a shipping company in the South Korean-capitalized STX GroupSTX Pan Ocean is one of the major integrated water carriers around the world, and the largest company in the bulk area in South Korea (annual volume handled: approx. 90 million tons, of which grain amounts to approx. 20 million tons.)
The STX Group also builds ships, manufactures engines and operates plants.