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A lot of money spent on grain infrastructure

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    A lot of money spent on grain infrastructure

    Seems like grain cos making more investment than ever before on infrastructure. .....good thing .....but does make a guy wonder if the efficiencies will dibble to the producer or if the producer realizes where the money came from?

    Although the grain cos still have to wait for railways to reduce their turnaround.

    Seems odd that elevators load in 24 hours.....cars then sit for 4 days ... and the railways want the grain cos to be more efficient....it takes 10 days to get cars to the west coast
    Last edited by bucket; Nov 23, 2016, 08:43.

    #2
    Seeing the same thing in this area with the new terminal at Maymont , more upgrades to local P&H underway , Ilta has recently spent a fortune to update it local facilities. Good to see

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      #3
      It is good to see....but with efficiencies come lower cost facilities which should be used to attract business....and better prices.

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        #4
        One assumes the loop track facility being biult here will be far more efficient than the concrete and ladder tracking. CPR doesnt even unhook.
        Competition shud be better unless illegal collusuon?

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          #5
          Some Terminals built in the 90's could become obsolete in the next 10 years. Producers are growing more grain and the easiest way to increase efficiency is to have trains moving on and off the mainlines as quickly as possible. There are many facilities that require the Railroad to shunt cars onto 3 or 4 latter tracks tying up traffic for a half hour or more. Loop tracks allow train to be off the mainline in minutes and faster turn around. We have found in discussions with the Railway for Comtrax project, very little consideration given any development on the mainlines for anything less that 134 cars and a loop.

          Your right about lots of builds. Buyers want origination and there is Margin. System could easily get over built but it wont be the modern 8hr loaders and loop tracks that will suffer it will be some of the older facilities with no room for expansion.

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            #6
            I live by a 10000 tonne concrete that in its day was well used...now it sits with a 38 car spot and is looked at with disdain because a grain Co won't expand it or sell it.

            Complete monopoly down this line so they don't have to make it convenient.

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              #7
              In my experience overseas buyers don't give a rats poop about origination. They want it $10 cheaper a mt than the other guy. They want it dirty so they can sell the screenings. Their market needs screenings as everyone keeps a few chickens. Bulk ship loads rule and origination is pointless and irrelevant as products speak for themselves. Does not matter how big your ego is they do not care.
              Last edited by biglentil; Nov 23, 2016, 16:35.

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                #8
                Originally posted by biglentil View Post
                In my experience overseas buyers don't give a rats poop about origination. They want it $10 cheaper a mt than the other guy. They want it dirty so they can sell the screenings. Their market needs screenings as everyone keeps a few chickens. Bulk ship loads rule and origination is pointless and irrelevant as products speak for themselves. Does not matter how big your ego is they do not care.
                I think their motivation for looking for origination is they can see that in many cases there is as much as $40 - $60 per tonne or more that is captured in margin between the farm gate and the spout to the boat. Japan clearly wants in with Grain Corp investment, Saudis want with G3. Businesses from China looking to enter our Market. If they don't care about origination why do they want to be here?

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                  #9
                  The only problem I see with clean bulk in the current system is keeping that way thru the system and into boats.....probably why end users have cleaners.

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