Grain shipments surging at Thunder Bay

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Published: July 21, 2014

The Port of Thunder Bay is cautiously optimistic that it will ship seven million tonnes of grain this year, the largest amount in 15 years.

More than 1.3 million tonnes were shipped in May despite difficult ice conditions that delayed the port opening by one month. It was the largest one-month tally since 1998.

The port has since then continued to ship about a million tonnes of grain a month.

“It’s very strong,” said Tim Heney, chief executive officer of the Port of Thunder Bay.

Last year, the port shipped 5.8 million tonnes of grain.

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Spring and fall are normally the port’s busy seasons, but the delayed start to the shipping season, difficult grain movement this winter and last year’s record harvest combined to produce strong grain movement through the Ontario port this summer.

The port has the largest grain storage capacity in North America, a holdover from its days as Canada’s main grain shipping port in Canada.

Grain companies had shipped grain to the port’s eight grain elevators this winter, expecting an earlier opening. The grain was loaded onto waiting vessels when the port opened at the end of April, which resulted in the record shipment in May.

Shipments are still well short of the record set in 1983, when 18 million tonnes of grain were shipped to the former Soviet Union and North Africa. However, the former Soviet Union became a grain exporter shortly after, and shipments through the port began to decline.

Heney said the port is watching the conflict in Russia and Ukraine and its possible impact on grain production and exports.

He said the spring’s record shipments have grain companies taking a second look at Thunder Bay.

“There’s been a lot of attention to Thunder Bay because of this surge. It’s still dependent on markets,” he said.

The storage facilities have helped reduce demurrage at the port, but the railroads can barely keep the grain flowing fast enough, he added.

Thunder Bay won’t be used to ship to Asian markets, but it will remain a key port. Shipments through ports along the Mississippi River slowed this year because of flooding, and railways had difficulty transporting grain to Churchill because of soft rail bed conditions.

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