South Korea to Build Grain Terminal in Cambodia
As a result of an agreement between the South Korean and Cambodian governments at the 2014 ASEAN-Republic of Korea Commemorative Summit in December 2014, South Korea’s Ministry of Oceans and Fisheries (MOF) is working with local companies to build a grain terminal in Cambodia.
The MOF has stated that it is initiating a feasibility study to determine the optimal location within the country, scale and commercial viability of the project, and routes for possible funding.
Due to progressive policy shifts by the Cambodian government, the country’s grain exports have increased significantly, but a sufficient infrastructure system to support these higher export volumes is lacking. To remedy this, the two governments have agreed to develop a logistics system by sharing the Mekong River that will drive sustained growth in Cambodia’s grain industry.
South Korea’s MOF will not only develop a business plan for a grain terminal operation in Cambodia, but is also planning to attract local companies to the beginning growth stage of the business. In addition, the ministry will deploy a public private joint team to solidify co-operation with the Cambodian government, and will source other businesses along the value chain such as processors to contribute to the growth of Cambodia’s grain industry.
To achieve this, the ministry has announced an agreement with Korea’s Development Bank (KDB), telling IHS Maritime 360, "We recently signed a memorandum of understanding [MOU] with Korea Development Bank [KDB], South Korea's largest provider of ship financing, to co-operate with overseas port investments. Given this, KDB will be able to participate in the project for assistance in financing.”