New GrainsConnect grain terminal coming to Vegreville

[buzz]

Third GrainsConnect Canada site to be built near Vegreville, Alberta

GrainsConnect Canada is pleased to announce the location of its third independent, high throughput grain terminal.

Subject to regulatory approval, the $30m project will be built near the town of Vegreville, 100km east of Edmonton, Alberta. In line with previously announced sites in Maymont and in the Municipality of Reford in Saskatchewan, the site will feature a state-of-the-art 35,000 tonne grain terminal with the ability to load 130 rail cars in under 14 hours. Like the Saskatchewan sites, GrainsConnect Vegreville will be the first site in the region with a 130 car rail loop, increasing efficiency and reliability to growers in the area.

GrainsConnect Canada President Warren Stow said: “This is the first site to be developed in Alberta and will bring a competitive edge to the regions’ growers. Growers will have more choice and access to one of the most efficient supply chains to the West Coast. “While the project is subject to regulatory approval, we are confident this will bring many benefits to the region and represents a multimillion dollar infrastructure investment. We hope to start construction this summer.

“As we have seen at the Saskatchewan sites, at least 50 jobs will be created during construction as well as 12 – 15 full time jobs once completed.

“I want to thank our rail partner CN and the Alberta Provincial Government for their enthusiastic support for the project,” Mr Stow said.

CN Vice President of bulk Doug MacDonald said: “CN is pleased to once again be partnering with GrainsConnect to help it grow its business in Alberta, connect it to world markets, and strengthen the grain supply in Western Canada”.

Once regulatory approval has been secured, construction is expected to commence mid-year with an expected completion date of late 2018. About GrainCorp and Zen-Noh Grain Corporation GrainsConnect Canada is an international joint venture between GrainCorp and Zen-Noh Grain Corporation. GrainCorp is Australia’s largest listed agribusiness with operations in Australia, the United States, New Zealand, China and the United Kingdom.

Zen-Noh Grain Corporation is, US subsidiary of Japanese Agricultural Cooperative(Zen-Noh), trades and exports US corn, beans, sorghum to Japan and other global markets.

For more information, please contact your local GrainsConnect or GrainCorp office.

[blackpowder]

3rd one announced within last year or so within 50 miles. 2nd one in a month. First one started operating this week.
Doesnt stop amazing me. Industry capacity growth surge since govt exit.

[farmaholic]

Two things.....no government shackles on the Industry(no CWB) and likely very profitable since then.
....and then there was DURUM!!!

If there was no chance of money to be made shit wouldn't be built....but remember....everyone in the chain needs to be profitable! Even the lowly Producer.

[malleefarmer]

Heaven help us if a grain co ever decides to build in Ukraine or black sea somewere, they are screaming out for infrastructure and would be a game changer for world grain industry

[malleefarmer]

Another question with rail capacity isn't there a constant shortage of rail cars?

Plenty of farmers in nsw and qld and vic would prefer money to be spent upgrading sites in australia

[MBgrower]

A grainco would have to be pretty brave or stupid to invest in the ukraine theses days.

Does this new company have access to a terminal at the west coast? I sure dont see any existing players renting out space for them to compete, its not the canadian way.

[bucket]

Railcar building will soon be a growth industry in Canada. ...every facility could add 10000 tonnes of dynamic storage with railcars....think about that to move our crop faster.

[Rareearth]

Part of the reason the Sask Wheat Pool failed was because it invested/partnered in port facilities in the Ukraine.

They also invests in a donut shop, Robins donuts (before I knew what a donut shop was). Tim Hortons showed them how to franchise, did the same happen with grain? Looks like it now.

[blackpowder]

Somebody gonna have to buy bunch of new cars. The taxpayer ones are getting old.
Absolutely amazing to pull into local cargill crush plant and always see miles of new looking, privately owned cars at their disposal.

[malleefarmer]

vitterra were so so close to doing something in black sea but then glencore bought them out got shelved.

not stupid to build there no brainer but brave yes siree who ever made the comment and wont happen but its 1950s port facilties etc

so your still going to have a bottle neck at port it seems worldwide problem.

is your northern port redundant Churchill was it?? Or only a narrow window to ship from there or both?

[dmlfarmer]

Heaven help us if a grain co ever decides to build in Ukraine or black sea somewere, they are screaming out for infrastructure and would be a game changer for world grain industry

You are absolutely right Mallee about the world grain industry changing if grain co invest. Unfortunately they are already are. Bunge already opened a US180 million facility. A year ago Cargill began construction of a 100 million port terminal. Risoil a Swiss trader has opened a 70 million terminal for exporting sunflower oil. Cofco of China has already purchased a 75 million grain terminal and is planning new construction right now.

Canada and Australian farmers are now competing to sell our grain to the same companies which are closer to the customer and who can buy from farmers who can profit at prices of a 100 or more per tonne less than we can because of cheaper land, lower labor etc.

I am not sure if even Heaven can help us in the future.

[skip]

Does anyone know the economics of growing wheat in the Ukraine? Costs etc?

[malleefarmer]

Does anyone know the economics of growing wheat in the Ukraine? Costs etc?

Have a friend in Germany that has contemplated it beautiful black soil meteres deep no fert need apparently low weed burden land is cheap good grain growing climate.

but corrupt no machinery dealers no were to deliver grain diesel shortages at times quite a list of negatives he chose not to just to hard

[dmlfarmer]

Does anyone know the economics of growing wheat in the Ukraine? Costs etc?

From Australian study. And Russia wheat growing costs lower yet. That is where the grain company investment I noted in earlier post is occurring - on Russia Black Sea region. And Canadian farmers still think we are competitive in global wheat market place.

[malleefarmer]

spot on dml farmer if Ukraine could get there port costs lower they would be the big kahuna in wheat marketing if they aint already.

how do they get port costs lower scale and efficiency which a bunges or Cargill dreyfuss glencore youd cofco you think if they build the storage they would to a degree control the market in the black sea

will it happen still probably not