Busan Port Authority (BPA) will build and operate a $109 million container terminal in Russia - its first overseas investment, according to a statement released by the company.
The terminal, in Nakhodka, near Vladivostok, will be built by a joint venture company consisting of BPA and three other South Korean companies - Glovis Co., Daewoo Logistics Corp. and Sinokor Merchant Marine Co.
The companies will also be working with a Russian firm, the Far Eastern Transport Group. The terminal is expected to be completed in 2010.
The terminal will be built in three phases to process 400,000 TEUs (twenty foot equivalent units). The first phase, costing $21.8 million, will be able to handle about 150,000 TEUs when completed in July next year.
Reports say the acquisition is in line with the South Korean government's effort to respond to competition from China.
The government started a $2.2 billion fund for port investments in September.
BPA is currently looking for port investments in Italy, Greece and Croatia.
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