CANADA – Australia’s grain storage company, GrainCorp has said that it will invest US$26.11 million (C$35 million)over the next two years in a new grain terminal at the Port of Vancouver,Canada.
GrainCorp’s contribution will be made from existing cash and debt facilities.
According to World Grain, the Fraser Grain Terminal will be constructed through a joint venture in a 50-50 partnership with the Canadian flour milling, feed milling and grain marketing company, Parrish& Heimbecker (P&H).
The facility will be built in collaboration with GrainsConnect Canada, GrainCorp’s joint venture with Zen-Noh Grain Corp.
Fraser Grain Terminal is expected to be completed by the end of 2020 and according to P&H, the new export facility will address two major constraints, limited western Canada rail capacity, and a shortage of port industrial land for grain handling.
In addition to GrainCorp’s contribution, the joint ventures have agreed to continue to source additional funding from financial institutions for the construction of the terminal.
GrainsConnect Canada is a joint venture between GrainCorp, a leading Australian agribusiness,and Zen-Noh Grain Corporation, a subsidiary of major Japanese agricultural cooperative Zen-Noh (National Federation of Agricultural Cooperative Associations).
It was incorporated in Canada in 2015 and operates four rapid, high capacity country grain elevators: Vegreville and Huxley in Alberta, and Maymont and Reford in Saskatchewan.
Founded in 1909, P&H is a Canadian, family owned agri-business with operations that include grain trading, handling and merchandising, as well as crop inputs, flour milling and feed mills.
GrainCorp’s annual net profit fell 50% to US$51.37 million as a result of dry conditions that hit production in eastern Australia during the last cropping season.
The company said positive progress was made during the year on our international growth into Canada and the Black Sea region.
GrainCorp said it was reviewing a US$2.4 billion buyout offer from Long-Term AssetPartners Pty Ltd (LTAP) involving control of 100% of the shares in GrainCorp.