Saskatchewan Wheat Pool’s bid to buy Agricore United has thrown a monkey wrench into the federal Competition Tribunal’s review of another proposed west coast grain handling venture.
The tribunal decided last week to postpone its investigation of a 2005 agreement between SWP and JRI International to operate their grain terminals at Vancouver as a joint venture.
The federal Competition Bureau has asked the tribunal to block the joint venture saying it would reduce competition for grain handling services at the port.
A legal process known as oral discoveries was to begin Nov. 13, but the grain companies asked for a postponement, citing the recent offer by SWP to purchase AU, and the fact that the ordered sale of one of AU’s terminals at Vancouver has yet to be completed.
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The tribunal called on the parties to get together Jan. 30 to set up a new timeline.
Jean-Marc Ruest, JRI’s vice-president of legal and industry affairs, said it made no sense to proceed with the joint venture case until the other issues have been resolved.
“With the SWP bid for AU, the landscape changes significantly as far as the bureau’s views on the industry generally and the port of Vancouver specifically,” said Ruest.
Since the summer of 2005, SWP and JRI have been operating their terminals, located next door to each other on the north shore of Burrard Inlet, as a joint venture on a limited basis, following conditions laid out in an interim agreement with the bureau.
The pool and JRI say the joint management of the two terminals results in more efficient use of rail cars and vessels, better management of stocks and storage space, improved throughput and lower costs, benefiting everyone from farmers to railways to end-use customers.
However the bureau maintains the project reduces competitive options for farmers.
The two terminals have a combined capacity of 345,240 tonnes, representing 36 percent of the total storage space at the port. They are being operated under the name Pacific Gateway Terminal Ltd.
The Vancouver Port Authority, Canadian National Railway and Canadian Pacific Railway have intervened in favour of the proposal, while the Canadian Wheat Board is opposing it.
