STX to develop Gargoub port in Egypt with grain silos

STX Corp., a South Korean general trading company, is expected to develop a Mediterranean port in Egypt and build grain silos at the port, a move expected to accelerate the company’s foray into the grain transportation, storage and trading business.

The Korean company announced on Wednesday that it signed a strategic partnership agreement on Monday with the Ministry of Transportation of Egypt to develop the Mediterranean port of Gargoub and an economic logistics zone near the port.

The port built by the Middle Eastern country’s navy serves the country’s logistics hub and is considered a strategically important location for the development of the western region of the country.

STX will build and manage grain silos at the port and construct other port infrastructure in phases.

It hopes the port development project in Egypt serves as a springboard for its venture into the grain sea transportation, silo operation and trading business with STX Green Logis Ltd., a shipping and logistics spinoff from STX.

Egypt, having multiple free trade agreements with many countries, is a trading and logistics gateway to Africa, the Middle East and Europe.

It is also the world’s largest wheat importer, importing more than half of its annual wheat consumption of 20 million tons.

Egypt is also a main grain exporter in the region thanks to its warm weather and relatively fertile soil.

Since STX's carveout of the shipping unit, the trading company has been seeking to further enhance its raw materials trading business.

Write to Mi-Sun Kang at misunny@hankyung.com

Sookyung Seo edited this article.