Expect the unexpected when Terminal One Vancouver opens for business in mid-August, says a company spokesperson.
New partners have been added to the consortium and people may be surprised when their identities are revealed, said Garth Gish.
“I think it will be safe to say we do have a surprise or two in store for the general farming public,” he said July 28.
Gish declined to provide details, such as the identity of the new partners, how many there will be or how much additional grain or investment they will bring to the facility.
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“I can say we haven’t left anyone out in terms of trying to acquire tonnes or equity,” he said.
Five independent Saskatchewan-based grain handlers bought the 102,070 tonne export facility from Agricore United in May.
The five partners are Great Sandhills Terminal Marketing Centre, North East Terminal, North West Terminal, Prairie West Terminal and South West Terminal.
The keys are to be turned over to the new owners Aug. 15, two weeks later than originally planned.
The five original partners can generate about 500,000 tonnes a year in grain volume, but the goal is to move at least 1.6 million tonnes a year through the facility.
As a result, the consortium has been working hard the past couple of months to bring more partners on board to boost the facility’s volumes through grain handling agreements.
The most obvious candidates to join in the new venture would be some of the other grain handling facilities that make up the Inland Terminal Association of Canada.
But that’s easier said than done because all existing prairie grain shippers have terminal handling contracts and, in some cases, equity arrangements with the four big firms that own the terminals at Vancouver.
Officials with CMI Terminal JV and Gardiner Dam Terminal said they won’t be able to participate because they have ongoing 50-50 equity arrangements and exclusive grain handling agreements with AU.
“Much as we would like to we are bound to our partners,” said Gardiner spokesperson David Pederson, adding the company wishes Terminal One well.
Bill Huber of Terminal 22, who also supports the Terminal One venture, said his company has made no decision, adding he planned to discuss the issue with Terminal One at a regularly scheduled ITAC meeting Aug. 3.
Terminal 22 has an equity and marketing arrangement with Cargill.
Weyburn Inland Terminal manager Rob Davies said the company is considering whether it can participate but no decision has been made. He said it will be a business decision made in the best interests of customers and shareholders.
Other potential partners might be smaller line companies with no facilities at the West Coast, such as Paterson Grain or Parrish and Heimbecker. Neither could be reached for comment.
Meanwhile, Gish said all those involved in Terminal One are excited and optimistic.
“This is a great year to take on a project like this,” he said.
“At least on the west side of the grain belt there is a good to bumper crop coming on and that’s what we need to be a success.”
The original purchase agreement called for a transfer of ownership Aug. 1, but that was put back through mutual agreement among Terminal One, AU and the federal competition bureau.
Gish said a number of factors led to the change, including delays in the completion of environmental and engineering studies, summer holidays and a need by potential partners for more time to perform their due diligence on the project.
“I think when we ultimately come to the public with our partnership, the complexity of our negotiations and the amount of work involved will be well appreciated,” Gish said.
Terminal One’s business plan calls for the original five to retain at least 50 percent equity in the project.
