GRAINCORP’S joint venture with Japan’s Zen-Noh Grain Corporation, GrainsConnect Canada, has been announced as a partner in the Fraser Grain Terminal (FGT) at the Port of Vancouver in Canada.

GrainCorp’s joint venture, Grainsconnect, already operates trains and elevators in western Canada, and is a partner in the Fraser Grain Terminal being built in Vancouver. Photo: GrainsConnect

Construction of FGT was announced by Canadian agribusiness Parrish & Heimbecker (P&H) in November last year, and under the agreement, it will become a 50-50 joint venture between GrainsConnect Canada and P&H.

FGT will connect GrainsConnect Canada’s country delivery points directly to export markets, consistent with GrainCorp’s strategy to expand its grain origination footprint and increase access to global customers.

Subject to regulatory approval, GrainsConnect said its involvement with the FGT will create a high-speed and end-to-end supply chain for the company in western Canada.

In accordance with its share in the GrainsConnect Canada joint venture, GrainCorp will contribute C$35 million (A$36.3 million) over the next two years to help fund the building of the terminal, which is due for completion by the end of next year.

FGT is a new export facility in Surrey, British Columbia, and the project received Vancouver Fraser Port Authority permit approval in November.

When complete, P&H has estimated FGT will provide 4 million tonnes of terminal capacity per year.

GrainCorp’s contribution to FGT will be made from existing cash and debt facilities.

P&H said the new export facility would address two major constraints – limited western Canada rail capacity, and a shortage of port industrial land for grain handling.

P&H has secured a long-term lease with the port authority for the site.

GrainsConnect promotes itself as having Canada’s most efficient supply chain, which connects growers of Alberta and Saskatchewan to global markets through the region’s first state-of-the-art facilities with 134-car rail loops.

GrainsConnect 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.

P&H is a Canadian family owned business with more than 60 locations across Canada, and its operations include grain-trading, handling and merchandising, as well as flour and feed milling.

Exports of Canadian grain and specialty crops to China and Southeast Asia have continued to increase, and FGT is expected to service this growing market.

The Port of Vancouver is Canada’s biggest, and has several grain terminals in operation already.

These include: Alliance, of which P&H is a partner; Cargill; Viterra’s Pacific Elevators; Richardson International, and Cascadia, which is jointly operated by Richardson International and Viterra.

Source: GrainCorp, GrainsConnect, Parrish & Heimbecker