Canada's CWB to build fourth grain elevator

Fri Oct 3, 2014 11:35am EDT
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WINNIPEG, Manitoba Oct 3 (Reuters) - Canadian grain marketer CWB said on Friday that it will build a rural crop elevator near St. Adolphe, Manitoba, its fourth elevator, as it expands Canadian storage capacity to handle bigger crops.

The elevator will hold 34,000 tonnes of crops when it opens in early 2016 in the fertile Red River valley, CWB said. There will be track to load up to 134 rail cars, with access to Canadian National Railway Co and BNSF Railway Co .

CWB is also building crop elevators near Pasqua, Saskatchewan, Colonsay, Saskatchewan and Bloom, Manitoba. Rivals Richardson International Ltd, Cargill Ltd and Viterra have also announced building projects.

Ottawa stripped the former Wheat Board of its western wheat and barley marketing monopoly in 2012 and agreed to guarantee CWB's borrowings until it is sold or develops a plan to be self-sustaining by 2016.

Farmers who deliver grain under CWB contracts will receive an equity stake in the company once it exits government control. (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by David Gregorio)