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  • By Lynda Kiernan-Stone, Global AgInvesting Media

APM Terminals Enters Grain Handling with China JV

APM Terminals is shifting its focus from handling containerized cargo to handling grain at the recently developed Qingdao Port Dongjiakou Multi-Purpose Terminal in China on the Yellow Sea.

The port is one of the busiest in the world and is ranked seventh in the world by cargo volumes, handling 468 million tons last year.

APM, which also operates grain handling facilities in Peru and Georgia, will hold a 20% stake in the Qingdao Port Dongjiakou Multi-Purpose Terminal, which will be jointly operated by Qingdao Port International, handling grain and other cargo. The port will also serve to facilitate grain movement from the port to markets in China’s hinterland.

“China, as the world’s largest population, and second–largest economy, is a crucial center of global trade and logistics, and we are very pleased to advance our multi-port strategy of growth beyond containers in this exciting and fast-growing market,” said Kim Fejfer, CEO for APM Terminals.

The grain handling landscape is currently complicated in China as the country tries to deal with record high corn inventories after bumper crops in both 2012 and 2013 amid softening domestic consumption, leading the U.S. Department of Agriculture (USDA) to cut its long-term forecast for China’s grain imports for 2023/24 from 22 million tons to 6.5 million tons. However, the country remains as the world’s top soybean importer.

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