Lunch at Northgate....

[oneoff]

dum.....because the company is Scoular (not Scoulr)... as if I don't make spelling errors.

Seriously; read that court document. Scoular isn't a fly by night business. They claim; and it is no doubt true; that without their expertise in grain trading; their long term proprietary relationship with companies such as BNSF and even Homeland Security; that this project wouldn't have been even feasible or have gotten government approvals that have been obtained. As I read it; they claim that Scoular was used and that their company is owed "millions" of dollars.

They note that this would have been the 6th north -south rail connection in Western Canada. That doesn't conflict with a statement that this would be the third north-south rail connection between the Rocky Mountains and the Lakehead.

Farmers need every bit of rail line access that they can get. And BNSF has committed to supplying significant car number.

And for those interested in oil movement.... such as cotton....read that single line that pretty much claims that there are no takers on the "partnerships" for moving oil from this "Port".

Additionally; it is such interest that a new rail "Port" generates; that drives additional expansion plans of competitors. My guess is that reputable companies such as Scoular are still very much in the running to establish a grain company presence in Canada; and that entities such as the Northgate ND (General Mills-Viterra plant) are weighing their options. And the very lightly used Richardson facility at Northgate SK on the CNR line has potential and so on and so on.

If nothing else; providing new facilities for someone else takes some of the pressure off the infrasrtructure and facilities that others must use.

What isn't productive is to support and even put all your eggs in baskets that are unservicable and grossly flawed in concept and implementation.

Ending up in near financial ruin and court battles doesn't show an ideal plan. Some results are predictable....if you sqirrel out the facts from the cloak of secrecy.

[oneoff]

Bits and pieces from 75,000,000 Ceres Rights offering that is underway

"The Scoular Company Litigation may result in material liability to the Corporation
On June 12, 2014, The Scoular Company initiated an action in the State of Minnesota against the Corporation for injunctive relief and unspecified damages related to the development and construction of the grain facility at the NCLC. As of the date hereof, management intends to defend the complaint vigorously and is examining all of its procedural and substantive options. The outcome of this complaint is difficult to assess or quantify. The plaintiff may seek recovery of large or indeterminate amounts, and the magnitude of the potential loss may remain unknown for substantial periods of time. The cost to defend this complaint may be significant. In addition, this complaint, if decided adversely to the Corporation or settled by the Corporation, may result in liability material to the Corporation’s financial statements as a whole or may materially and adversely affect the Corporation’s business, financial position, cash flow, and/or results of operations."

"

http://ceresglobalagcorp.com/pdfs/CERESGLOBA_English%20ProspectusCA_20141021.pdf



Capital Requirements to Construct the NCLC
Site preparation grading at the NCLC is now 100% complete and Ceres has installed 10,450 meters out of an anticipated 12,552 meters of rail track running north from the Canada-U.S. border and into the NCLC site. Construction of the remaining site infrastructure is in progress. Rail building materials are already on site and a locomotive has been leased. Power line installation began in mid-July and is now fully operational. As at September 30, 2014, Ceres had invested approximately $21.1 million to prepare the NCLC site and build new rail tracks connecting the NCLC to the BNSF network, and $0.2 million on the grain transload facility, both are expected to be completed in October 2014.
Ceres has entered into a construction contract effective September 9, 2014 (the “NCLC Contract”) with FWS Industrial Projects Canada Ltd. (“FWS”) to design and construct a 2.2 million bushel grain terminal for a price no greater than $42 million (including PST and GST). Ceres was required to make a $2.5 million deposit before any work began. Cash allowances have been established for cold weather costs and office furnishings. Costs which would cause the cash allowance items to be exceeded will be paid by Ceres. Ceres will pay monthly progress payments (against invoices submitted by FWS accordance with the NCLC Contract) based on the amount and value of the work completed in the previous month, together with any GST applicable to such payment, less the statutory builders’ lien holdback.
The NCLC Contract provides that Phase 1 and 2 will be substantially completed on or before October 15, 2015 and March 18, 2016 respectively. The final completion date is scheduled for March 24, 2016. Phase 1 includes the construction of several structures such as the receiving driveway structures, three west steel storage bins, and control office, which will allow Ceres to ship 40,000 bushels per hour. Phase 2 requires construction of a concrete slipform grain terminal and cleaner dust system to achieve a shipping rate of 80,000 bushels per hour. Change orders agreed by both parties may amend the terms of the NCLC Contract.
Ceres has also entered into a construction contract (the “Transloader Contract”) effective June 4, 2014 with FWS. The Transloader Contract is a design-build agreement pursuant to which FWS will design and construct the receiving/rail shipping facility for a price no greater than $1.78 million (including PST and GST).
Cash allowances have been established for electrical and wiring. Costs which would cause the cash allowance to be exceeded shall be paid by Ceres. An initial payment of 10% of the contract price has been paid. Ceres will pay monthly progress payments (against invoices submitted by FWS in accordance with the Transloader Contract) based on the amount and value of the work completed in the previous month, together with any GST applicable to such payment, less the statutory builders’ lien holdback.
The Transloader Contract provides that the grain transload facility will be substantially completed on or before October 10, 2014. If construction of the grain transload facility is delayed 7 days beyond the anticipated date of scheduled completion, FWS is required to pay liquidated damages of $5,000 per day to a maximum of $150,000. Change orders agreed by both parties may amend the terms of the Transloader Contract.
Description
Expected Completion
Amount Spent to Date
Additional Expenditure
Total
(in millions, unless otherwise noted)
Tracks and Site Preparation
October 2014
$21.1
$8.9
$30.0
Grain Transload Facility
October 2014
0.2
2.4
2.6
Grain Elevator
October 2015 for Phase 1 and March 2016 for Phase 2
-
40.0
40.0

[farmaholic]

I guess each "Investor" or potential "customer" of the Company in question has to do their own due diligence. But what if there is no track record? Maybe don't risk it all, or all at once. Test them, but I don't know if I'd want to be the guinea pig.

[hobbyfrmr]

With Scoular out of this picture I would be extremely hesitant to deliver grain. I don't know enough about Riverland Ag / Ceres Global. I had a look at their stock quote and it seemed to me at that time they did not have enough cash to complete the project. Disengaging with Scoular was the wrong move in my opinion. Now they have to find another solid, reputable BFF.
Talk on the street was that the groundwork (pilings foundations etc,) were going to have huge cost overruns because of the soil there. I know nothing of the area so basically I am gossiping to gather more about it.