G3 Global Holdings said on Tuesday that it would study the feasibility of building a grain terminal at Port Metro Vancouver, a move that would step up competition among grain handlers. Winnipeg-based G3, which agreed in April to buy a controlling stake in grain handler CWB, said it would consider building the terminal at Lynnterm West Gate, on the North Shore of Canada's busiest port. Western Stevedoring, which holds the lease, is a partner.
G3 is a limited partnership between US-based oilseed processor Bunge Ltd and Saudi Agricultural and Livestock Investment Co (SALIC). "The planned combination of CWB and Bunge's Canadian grain assets will provide a highly competitive eastern footprint," said G3 Chief Executive Karl Gerrand in a statement. "We now are looking west to determine whether this is the right time and location to take the next step."
It would be the first new grain terminal at the port since 1968. While it may address some issues in moving grain from the Prairies to port, the terminal may create other challenges, said Mark Hemmes, president of Quorum Corp. The company monitors grain transportation for the Canadian government. The North Shore is already home to grain terminals owned by Richardson International and Cargill Ltd, along with terminals for other commodities.
If the new terminal moves 6 million tonnes of grain annually it would require two additional trains daily to the North Shore, which is reached by a tunnel, and bridge across Burrard Inlet, Hemmes said. Canadian National Railway Co owns the track serving the North Shore, although rival Canadian Pacific Railway Ltd can also access the area. CN spokesman Mark Hallman said its rail line is nearing capacity and it is working with the port and governments to address the North Shore's "last mile bottleneck." G3 is among several grain companies boosting capacity, following transportation snags moving the record-large 2013 harvest. Richardson is completing its own terminal expansion this year, and numerous grain companies are building new Prairie elevators to buy crops from farmers.
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