Pulse company to buy producer car loading assets

[gustgd]

http://www.producer.com/daily/pulse-company-buys-loading-assets/#.VS2fz3Oj_bE.twitter

[Klause]

Just wait for the complaining to start, gustgd.... LOL.

[bucket]

I wish they would have gone after the cwb.

I realize he isn't into that, but somehow can't help but think he could put some nice shipments together. Wheat and lentils in containers on the same boat?

Where do you guys think AGT ends up 5 years from now?

[gustgd]

5 years from now AGT will either get bought out by one of the big 5 worldwide companies or they will form a strategic partnership with one of the smaller Canadian firms. Thinking Patterson or P&H.

Outside chance of getting in on buying out some of the farmer owned terminals. There's still a couple left.

Bucket did you go to the GDT meeting? I heard there was fireworks over equity payments v reinvesting for greater profitability.

[dave4441]

He didn't buy these assets to ship containers. They would buy assets like this to get to unit trains to load vessels. Its a smart move on their part,

[sumdumguy]

those who live around that area can describe the loading facilities they bought. Were they abandoned elevator sites?

[bucket]

Gust

Didn't make it to the GDT meeting.

Haven't heard about the issues at gdt.

[gustgd]

I've never hauled to wcrr.ca but I understand they have everything from couple bins on the siding to some pretty good setups. Their paper blending program is supposed to be pretty good.

Dave that's some good insight on the unit trains. Do you think Alliance is going to be a significant player in the durum market. That's a pretty good quality area. They have contacts around the world as well as mills.

[MBgrower]

Why would he ship durum in trains, i thought he was going to be shipping pasta products.

[dave4441]

Probably not real big (but betting against Murad is never a great idea) because he can't fob vessels in Vancouver. He can in Tbay for Europe or turkey (which he can mill in his own plants) but durum is a least cost product. Gotta be able to compete and will be hard against Panamax loading in Vancouver. But he can do split vessels (reds and durum) to turkey and probably make some sense out of the logistics. He can also go to USA with hoppers though, which would be key. Time will tell but wouldn't expect he would make a large dent in Viterra or JRI's business.

He simply will not be able to stuff containers likely in Montreal and be competitive when Tbay is shut down in winter. So program would get broken up somewhat which is never good.