Hanjin to spend $50M on LA grain terminal to cut costsHanjin Shipping, Korea’s leading shipping line, will construct a grain terminal in the U.S. to facilitate shipments and reduce the overall logistical costs in importing grains to Asian regions, the Ministry for Food, Agriculture, Forestry and Fisheries said yesterday.
Hanjin will invest about $50 million to build the terminal in the southern area of Los Angeles with an aim to complete construction in 2014, the ministry said.
The government will provide financial support including loans.
The grain terminal will serve as a hub for selecting, storing and shipping corn, beans and other grains used for animal feed from the U.S. to Northeast Asian areas, the ministry said. It will be able to process 2.2 million tons of grain every year when it is fully operational, it added.
Currently, Korea ships grain from the U.S. by using the Panama Canal, which takes about 60 days. The grain terminal to be built in the U.S. will reduce the time to about 30 days, the ministry said.
A Hanjin official said that the terminal will initially process about 1.1 million tons of grain in 2015 when it starts operation. Of them, 300,000 tons will be shipped to Korea.
The amount of shipments bound for Korea will double to 600,000 tons by the end of 2022, he added.