Eastern ice latest obstacle to clearing Canada grain backlog

Thu Mar 20, 2014 2:15pm EDT
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By Rod Nickel

WINNIPEG, Manitoba, March 20 (Reuters) - Thick ice on Eastern Canada waterways will hamper efforts to clear a massive crop backlog, with Port of Thunder Bay, Ontario, likely to open at least a week later than usual this spring, its chief executive said on Thursday.

Ice in the port's harbor on Lake Superior is about four feet (1.2 meters) thick, one foot thicker than usual, and it also covers key stretches of shipping routes to the Atlantic Ocean, Port of Thunder Bay CEO Tim Heney said in an interview.

Heney said he was optimistic that the port will open during the first week of April after a brutally cold Canadian winter, about a week behind the usual March 25 opening.

That's "quite late for us," Heney said from his office in Thunder Bay, a city in northwestern Ontario of more than 100,000 people. "It's going to be a challenge."

The port had its latest opening ever, April 12, in 1994 and 1982.

Thunder Bay, where companies like Richardson International Limited, Viterra, Cargill Ltd and Parrish & Heimbecker store grain for export, connects western crops with the Atlantic Ocean via the Great Lakes and St. Lawrence Seaway, destined for Europe, north Africa and Latin America.

Frigid weather and snow have slowed Canadian National Railway Co and Canadian Pacific Railway Ltd, trains leaving country elevators and farm bins stuffed with grain after a record-large wheat and canola harvest.

The Canadian government ordered the railways March 7 to more than double weekly grain shipments to 1 million tonnes or face penalties of up to C$100,000 ($89,000) per day.   Continued...