Poland to Build State-Owned Grain Terminal at Port of Gdansk to Strengthen Food Security
- 20-Dec-2024 11:40 AM
- Journalist: Emilia Jackson
In a move aimed at bolstering Poland’s food security, the Polish government has announced plans to construct a state-owned grain terminal at the Port of Gdansk, a key infrastructure project set to enhance the country’s grain import and export capabilities. The terminal, with an investment value of €117 million (approximately US$123 million), is expected to be operational by 2026.
Deputy Infrastructure Minister Arkadiusz Marchewka unveiled the plan during a press conference at the Baltic port, highlighting the growing importance of the project in light of the shifting dynamics of the global grain trade, particularly following Russia’s invasion of Ukraine in 2022. Poland has seen a significant increase in grain imports, especially from Ukraine, which has prompted concerns over the country’s port infrastructure.
Polish Prime Minister Donald Tusk emphasized that the new terminal was essential for managing the influx of Ukrainian grain, which had strained the country’s existing port facilities. The Port of Gdansk, which handles a substantial portion of Poland's grain imports, saw a 52% increase in grain throughout in the first half of 2023 compared to the same period in 2022. The surge in grain shipments following Russia's invasion was exacerbated by the disruption of traditional shipping routes, particularly through the Black Sea.
2023 data from the statistical office of the European Union (Eurostat) showed that Poland imported around 12,700 tonnes of Russian grain including buckwheat, millet, canary seed, meslin and maize, which was up from 6,100 tonnes the previous year. This influx of Ukrainian grain has been a contentious issue in Poland, with local farmers expressing concerns about falling prices and competition from cheaper imports. In February 2024, Polish farmers staged a major protest at the Ukrainian border, calling for an import ban on Ukrainian grain. The protest highlighted the lack of sufficient port infrastructure, which resulted in much of the grain transiting through Poland instead of being shipped elsewhere.
Prime Minister Tusk stressed that the new grain terminal would not only serve commercial purposes but also act as a strategic safeguard for Poland’s agricultural interests. "This terminal will be a safety device in the hands of the Polish state," Tusk said, underscoring the importance of the terminal in protecting local farmers and ensuring Poland’s long-term food security.
Currently, Gdansk hosts several privately run grain terminals, but the government’s decision to build a state-owned facility represents a significant shift in Poland’s approach to managing its food supply chain. The new terminal will enable better control over grain imports and exports, providing the Polish government with greater oversight of the grain market.
In addition to the new terminal, Poland’s Minister of Infrastructure Dariusz Klimczak announced plans for a broader investment in the Port of Gdansk. The government will allocate over US$98 million for the development of additional road and rail infrastructure and the construction of extra warehouse storage to support the expanded grain terminal operations.