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Marubeni and ADM bolster export joint venture in U.S. Pacific Northwest

From an Archer Daniels Midland – Marubeni news release:

Archer Daniels Midland Company and Marubeni Corporation announced today that they have expanded Kalama Export Company LLC, their joint venture in the U.S. Pacific Northwest, as a result of Marubeni’s contribution of its grain export elevator operations at Terminal 5 in The Port of Portland, Oregon, to Columbia Export Terminal, a subsidiary of KEC [NOTE: KEC is known to longshoremen as KEX]. In connection with the transaction, the parties also intend to rename KEX as Pacificor, LLC.

KEX, which was formed in 1998 by Marubeni’s subsidiary, Gavilon Holdings, LLC; ADM; and Agrex, Inc., is engaged in the business of exporting grains and oilseeds via its grain elevator operation located in the Port of Kalama, Washington. The Kalama and Portland grain elevator facilities will continue to operate separately and maintain separate control of labor relations, but their common ownership is expected to improve efficiency and achieve more effective operation of the businesses.

“This action represents another important step in our ongoing efforts to build ADM’s Agricultural Services value chain from origination to destination,” said Joe Taets, ADM senior vice president and president, Agricultural Services. “With the addition of these export operations to Kalama Export Company, we are further expanding our network in a capital-effective way.”

“We believe that common ownership of the facilities will accelerate the parties’ efforts to improve operational efficiency and effectiveness, which ultimately will enable us to provide better service to our customers, worldwide,” added Satoshi Wakabayashi, Marubeni’s Managing Executive Officer, Chief Operating Officer, Food Material Division.

Source: ADM

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