EGIS Asset Management announced on the 2nd that it has established a 135 billion won loan fund for a private investment project at the Busan New Port grain terminal to strengthen domestic food security.
The fund will be invested in a project to construct and operate a new grain terminal with a capacity of 50,000 tons in front of the Nam Container Terminal in Seongbuk-dong, Gangseo-gu, Busan. The business method will be a Build-Transfer-Operate (BTO) approach, where the private sector constructs facilities and then transfers ownership to the government while retaining operation rights for a designated period.
The total private investment cost is about 240 billion won. Of the total 200 billion won in senior loans, the fund established by EGIS Asset Management accounts for 135 billion won, and it has maximized investment stability through the provision of 100% guarantees by the Korea Credit Guarantee Fund (KODIT), according to the company.
The new grain terminal, scheduled for completion in 2028, is a state-of-the-art facility that will replace the aging Busan North Port facilities. It will be the latest grain terminal introduced in 17 years since the construction of the Pyeongtaek-Dangjin Port in 2011, expanding silo capacity from the existing 130,000 tons to 190,000 tons, a 46% increase. With a designed depth of 14.5 meters, it will allow smooth berthing for large vessels, expected to play a role as a leading port for domestic grain logistics.
Busan Grain Terminal Co., which includes comprehensive logistics company KC Transportation (KCTC) and general construction company BS Hanyang as shareholders, will be in charge of the project. KC Transportation, which operates the Busan North Port grain terminal through its 100% subsidiary, Korea Silo, is expected to ensure stable operations based on its accumulated expertise and sales network.
EGIS Asset Management also played a role in structuring the financial framework of this project, recruiting investors, and signing loan agreements. It successfully designed a complex project financing structure to secure financial stability for the project.
An official from EGIS Asset Management noted, "We will provide stable revenue to investors over a long-term operation of 27 years," adding, "This investment has significant meaning as it pursues social values such as expanding national infrastructure and strengthening food security, beyond mere revenue generation."
EGIS Asset Management plans to use this project as a steppingstone to expand its business into various infrastructure investment areas such as ports, roads, and railways. Amid expectations that the private investment project market will continue to grow in line with the government's SOC investment expansion policy, the company aims to actively discover new investment opportunities with its accumulated expertise. The end.