Cargill and Fauji Foundation have entered a long-term strategic partnership to strengthen the agricultural supply chain in the country.
With this deal, Cargill will be taking a minority stake in the Fauji Foundation Grain Terminal at Port Qasim and will be handling grains, cereals, rice, oilseeds, and fertilizers through this dry cargo terminal. However, the financial details of the investment have been kept confidential by both companies.
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The agreement will enhance the overall value for stakeholders, including the suppliers, customers, employees, and shareholders.
For the privately-held, US-based Cargill, this deal is its first investment in Pakistan after it had announced its strategic intent last January, and it reflects Cargill’s long-term commitment to the country.
Cargill had made the announcement in 2019 regarding its intent to invest $200 million in the country. While it is already a leading soybean and palm supplier in Pakistan, it will now strengthen its presence as a significant agri-importer while enabling Fauji Akbar Portia Marine Terminals Limited (FAP) to leverage its extensive experience in bulk handling, port operations, and its technical proficiency.
Chairman Fauji Foundation, Waqar Malik, said that this transaction is both a signal and the validation of the Pakistani opportunity seen by the world’s leading player in agriculture commodities.
“With its global port experience, Cargill will help drive greater operational efficiencies for the port to reach its potential of handling agri-cargo safely and efficiently,” Malik said.
“Going forward, both partners aim to build a safety culture that will create a world-class, safe, and sustainable environment for FAP’s employees and customers,” he added.
Imran Nasrullah, the Country President of Cargill Pakistan announced, “This is a demonstration of our commitment to partner in the growth of Pakistan’s food and agriculture industry. We are very proud of our partnership with the Fauji group, and together with them, we will strengthen the supply chain operations in the country. We are thankful for all the support from the Maritime Ministry towards this initiative”.
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FAP is a joint venture between Fauji Foundation, the Akbar Group of Companies, and the National Bank of Pakistan. FAP started operating in 2010 and provides complete supply chain management solutions for ship berthing, unloading, storage, and bagging of all types of grains, cereals, oilseeds, and fertilizers. The terminal operates with international standards and has helped build efficiencies in dry cargo handling in Pakistan.
The statement said that through this partnership with the world’s leading agriculture company, Fauji Foundation will transform FAP’s supply chain to enhance its overall value for all the stakeholders, including suppliers, customers, employees, and shareholders.
Cargill and Fauji,,,haha it does ring a bell lol