STX Advances Grain Terminal Project at Egypt's Gabk Port

Global trading company STX is partnering with the Egyptian government to develop the Egyptian naval port of Gargoub. The plan is to revitalize the port through the operation of a grain terminal.

On the 27th (local time), STX announced on the 29th that it signed a Strategic Partnership Agreement (SPA) for port development and grain terminal operation with the Egyptian Ministry of Transportation and Navy at the Ministry of Transportation building in Cairo, Egypt. The signing ceremony was attended by Park Sang-jun, CEO of STX, Kim Yong-hyun, South Korean Ambassador to Egypt, and Kamel Al Wazir, Egyptian Minister of Transportation.

Located on the Mediterranean, Gargoub Port is a key strategic point for the Mediterranean logistics hub and the development of Egypt's western region. STX will activate the Gargoub terminal constructed by the Egyptian Navy. Based on Egypt's own cargo volume, STX plans to actively enter the grain maritime transport business using STX Green Logistics, as well as grain silo (grain storage facility) operation and trading businesses.

STX and the Egyptian Ministry of Transportation will proceed with the project step-by-step in cooperation with the local navy. To this end, they signed a contract specifying detailed phased business contents including ▲construction and operation of the grain terminal ▲infrastructure development and activation such as port operation facilities ▲operation of the container port and attraction of hinterland industrial complexes.

Park Sang-jun, CEO of STX (right in the photo), and Kamel Al Wazir, Minister of Transport of Egypt, are signing a strategic partnership agreement.
[Photo by STX]

Egypt is a trade and logistics hub with free trade agreements (FTAs) with Africa, the Middle East, and Europe. With a population of about 113 million, it is the world's largest wheat importer, importing more than half of its annual wheat consumption of 20 million tons, approximately 12.5 million tons. Thanks to its warm climate and high-quality land, production of wheat, corn, rice, and other crops is abundant, and the scale of agricultural and fishery exports is steadily increasing.

An STX official said, "We will expand grain, crude oil, and strategic materials trading businesses not only in the Middle East but also in Europe and Africa by linking the development of Gargoub Port and leveraging the geographical advantages of the Suez Canal."