G3 to study building grain terminal at Port Metro Vancouver

Tue Jun 2, 2015 9:07am EDT
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WINNIPEG, Manitoba, June 2 (Reuters) - G3 Global Holdings said on Tuesday that it would study the feasibility of building a grain terminal at Port Metro Vancouver.

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 for the site, is a partner in the study.

G3 is a limited partnership between U.S.-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. Gerrand said G3 and Western Stevedoring needed to resolve a number of issues before making a decision, including permits and talks with the community and British Columbia aboriginals.

The move was first reported on Monday by Reuters. A source familiar with the matter said G3 had agreed to acquire the lease from Western Stevedoring.

(Reporting by Rod Nickel in Winnipeg, Manitoba Editing by W Simon)