South Korea’s bulk carrier Pan Ocean Co. will strive to be a leading global agriculture trader like U.S.-based Cargill Inc. by bolstering its grain trading business, Pan Ocean chief executive Choo Sung-yob pledged.

“We will bump up grain trading volume by 20 to 30 percent from 1 million tons last year, and nurture the business as one of our future growth drivers,” Choo said during a press meeting on Wednesday. “Like global commodities giant Cargill,” the firm will grow both agriculture trading and sea freight businesses as its two mainstay businesses he added.

To improve profitability, the company will expand its business in emerging markets such as Brazil, Southeast Asia and the Middle East, the CEO said.

Citing industry experts’ estimates, Choo gave a rosy outlook on the bulk shipping industry that the global shipping demand would improve about 2 percent and supply 1 percent this year. The Baltic Dry Index (BDI) that tracks the cost of shipping raw materials like coal, iron ore and grains by ship has recently climbed to the 1,300 level, beyond the expected range of 900, hinting that the bulk shipping demand would continue to recover, Choo added.

The company has successfully reformed its business and made synergies with the nation’s largest poultry processor Harim Group that in July 2015 took over the bulk carrier which had been under court receivership due to liquidity woes.

Pan Ocean’s financial health has improved after Harim took over it, helping it restore trust from major shippers, Choo said, adding its grain trading business also provides feeds for chickens raised by its parent company Harim for its poultry processing business.

To flex the nation’s shipping and shipbuilding muscle, Choo suggested close cooperation among the government, shipbuilders and shippers like in Japan.

By Kang Young-woon

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