Frustrated1, they told me the reason for the wide spread in possible savings in elevation fees was to allow for unforseen expenses...they won't know the actual savings they can pass down to the farmers untill they get further into the process...(hopefully there will be some savings!!!). My understanding is that they are going to try to keep on the existing management, and the terminal swap grain with the other terminals at the port such as is the existing practice. Yes there are flags, as there are many unknowns. It seemed to me like they have a handle on it, but only time will tell. So far these same guys have saved me a fortune in inputs and supplies, hope that I can save some money now on the marketing side.
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Glad you took it so well Nic!I hadn`t thought of Tom`s idea.....my `old thinking` surfacing there ,that we would only export `Canadian` raw product!!Jeesshh maybe there could even be another or `twinned` RR thru those slots in the rocks!!
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Nicolaas:
Hope you're ready to ship 1000 MT of non-baords in producer cars to them. Last time I checked, CWB grains are pooled at port and grain elevators ship where the CWB tells them to, even if it means to a competitors elevator. Grain Co's, am I working with out of date info?
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"Hope you're ready to ship 1000 MT of non-baords in producer cars to them. Last time I checked, CWB grains are pooled at port and grain elevators ship where the CWB tells them to, even if it means to a competitors elevator. Grain Co's, am I working with out of date info?"
Ok, you've got to speak slower to me. Why, especially in light of your comments, would CWB grains quit moving into this terminal when it has new owners? Especially considering the back log of ships. If the CWB is dictating the where's and how's of shipping wouldn't they wish to continue to move as much grain as possible "even if it means to a competitors elevator"? Or do no CWB grains go to this terminal now? I'm confused.
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Grain companies are going to want to ship your grain from their elevator to their terminal.
If they don't have a terminal, they have a terminal agreement with one - most (if not all) of these agreements say that these smaller country elevator companies MUST ship your grain to the terminal with the terminal agreement. If they ship it to another terminal, they are in breach of their contract/agreement.
The CWB can direct shipments of CWB grain to the terminal of its choice - typically for a reason though, like it has a financial arrangement with the terminal.
The only way this will work is if the terminal has handling agreements with country elevators and/or the CWB.
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Obviously though, there are arrangements with this termianal already and not all the grain going to Vancouver is going to be handled through AU elevators. A change of ownership will not guarantee these arrangments go with the terminal but certainly don't guarantee no arrangments can/will be made. Whomever doesn't marry with AU may have a vested interest in making this their terminal of choice? The need for both terminals is still there isn't it? If the CWB is serious about staying alive won't they be using any means available to load ships?
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AU has handling agreements with some of the smaller elevator companies – but I don’t think any specify shipping to the terminal that is for sale. (AU has two others in Vancouver.)
Most handling agreements are fairly long term – 3 to 5 years. I understand that's why some of the previous buyers had to opt out – couldn’t get enough country originations.
It would be great to have one more competitor but the current terminal operators believe that there is enough capacity without it.
The CWB could play an important role in the viability of this terminal under FNA management and ownership. The way I see it, it could be the only way its viable.
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Ahhh! Thank you chaffmeister. "enough capacity without" is definetly of major importance. I had understood other bidders had backed out, not enough commitment from elevators would do that. Now the barleyguy's comments about producer cars become relevent. Thanks for wading me through.
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