Canada grain handlers to expand as crops overwhelm system
By Rod Nickel
WINNIPEG, Manitoba (Reuters) - Three Canadian grain handlers said this week that they will expand facilities to handle the country's crops, after a record-smashing harvest overwhelmed the transportation system.
Viterra, owned by Glencore Xstrata PLC (GLEN.L: Quote), said on Thursday it will spend C$100 million ($92 million) to boost grain shipping through Port Metro Vancouver, while CWB, formerly known as the Canadian Wheat Board, said it is building a second Western Canadian grain elevator.
Global commodities trader Cargill Ltd CARGIL.UL said on Wednesday that it would expand an elevator site in Manitoba.
The moves come as the country's grain handlers and railways have struggled to move a record harvest to port, causing a massive backlog.
Last year's 76-million tonne Western Canadian crop was larger than expected due to nearly ideal weather during the growing season. But with seed technology companies developing crop varieties to produce bigger yields, the industry expects harvests to trend higher over the long term.
Viterra said it will modernize its Pacific Terminal at the country's busiest port to increase grain shipping and storage.
"Our goal is to create the most efficient port terminal in Canada with unprecedented capability for processing a diverse range of commodities," said Kyle Jeworski, Viterra's chief executive for North America.
Work on the terminal, which handles crops like peas, canola, flax, lentils, soybeans and corn, is expected to wrap up by 2016. Viterra also said last week it would build a new grain elevator at Kindersley, Saskatchewan. Continued...