Local food giant San Miguel PureFoods Co. Inc. (SMPFCI) has opened its P2.5-billion grain terminal in Batangas and is targeting over the long term to tap other companies to use the facility.
On Wednesday, the food unit of diversified conglomerate San Miguel Corp. formally opened its new grain terminal in Batangas, which is expected to reduce its food unit’s production costs as well as boost its margins.
Florentino Policarpio, president of San Miguel Mills Inc., said that the company has spent more than P2.5 billion for the Golden Bay Grain Terminal (GBGT), and the investment cost for the project could still grow as the company tries to expand the facility.
The terminal is seen as an important investment for the company, as it will maximize synergies within the San Miguel Group as well as external partners.
“We’re looking at seven years to recoup the investment . . . We’re really intending for it to be used for other companies as well,” Policarpio, who also sits as the president of GBGT, added.
According to him, the group is hoping that the full utilization of the terminal would be as soon as next year. Located in Mabini, Batangas, it started operations last month.
Supramax cargo vessel Persus Ocean was the first ship to officially dock at the terminal, delivering an estimated 50,000 metric tons (MT) of wheat-in-bulk from Portland, Oregon.
GBGT’s dock boasts of a berth that can accommodate a Panamax vessel of about 300 meters in length, and as much as 80,000 dead weight tonnage, the company cited.
The facility itself has a total 150,000-MT capacity for assorted grains housed in eight silos. It also has a pair of flat storage warehouses that can hold 100,000 MT of grain each.
The terminal is located beside SMC’s two flour mills in Barangay Pulong Balibaguhan.