UPDATE 2-G3 to study building grain terminal at Port Metro Vancouver
(Adds comments from G3 CEO, agriculture minister)
By Rod Nickel
WINNIPEG, Manitoba, June 2 (Reuters) - G3 Global Holdings said on Tuesday that it will study the feasibility of building a grain terminal at Port Metro Vancouver by 2019, which, if completed, would boost competition among Canadian grain handlers vying to buy farmers' crops.
Winnipeg-based G3, which agreed in April to buy a controlling stake in grain handler CWB, will consider building at Lynnterm West Gate on the North Shore of Canada's busiest port, with leaseholder Western Stevedoring as a partner.
It would be the first new grain terminal at the port since 1968, and expand the reach of CWB, which currently owns facilities to move grain east from the Prairies of Canada, which is the world's No.2 wheat-exporting country.
G3 is a partnership between U.S.-based oilseed processor Bunge Ltd and Saudi Agricultural and Livestock Investment Co (SALIC).
G3 is considering a design to handle longer trains than at any other Canadian port terminal, with shorter unloading times, said G3 Chief Executive Karl Gerrand. Those features may make the terminal more efficient for deliveries, he said.
"We're definitely breaking the mould on what has been the standard for the industry for decades. We're trying to invest in efficiency that creates more system capacity and provides better access to export markets."
G3's Vancouver terminal plan was the deciding factor in the CWB selling it a stake, said Agriculture Minister Gerry Ritz. Ottawa currently controls CWB. Continued...