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Ceres plans logistics hub in Canada

March 21, 2013

Ceres Global Ag Corp announced plans in February to build a US$90M commodity logistics hub at Northgate Saskatchewan, Canada, that will connect directly to BNSF Railway’s 32,000 mile (51,499km) rail network in North America.

Ceres Global Ag Corp announced plans in February to build a US$90M commodity logistics hub at Northgate Saskatchewan, Canada, that will connect directly to BNSF Railway’s 32,000 mile (51,499km) rail network in North America.

Ceres has acquired a 1,500 acre (607ha) site at Northgate and intends to install two high-efficiency rail loops, each capable of handling trains of up to 120 railcars. One loop will be dedicated to the handling and shipping of grains and oilseeds, particularly wheat and canola, while the other will be dedicated to the shipping and transloading of (mineral) oil.
Ceres said that the connection to BNSF’s network will give shippers from Saskatchewan direct access to customers in 28 states of the USA, as well as numerous ports on the Pacific Ocean and Gulf of Mexico, and destinations in Mexico. Through BNSF’s connection to other networks, access to other strategic locations and Atlantic ports is also feasible.

Construction is due to start this spring and the first shipments are expected later this year. The Scoular Company, a US-based agricultural marketing concern, will fund, own and operate the grain handling facility. “The Saskatchewan farmer is poised for much greater participation in an expanding and highly competitive global market”, said Bob Ludington, chief operating officer for Scoular. “The Northgate hub will serve to shrink the distance between Canadian supply and global demand, expanding marketing options tremendously.”

Ceres also said its discussions with a number of Canadian energy companies were nearing completion for “take-or-pay” oil transloading contracts based at the Northgate hub.


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