Mission Terminal Inc. is pursuing a mission.
The Winnipeg-based company, which operates a 120,000 tonne capacity terminal in Thunder Bay, Ont., wants to solidify its position as the shipper of choice for producer car users.
Over the past few years, the facility has become the largest handler and administrator of producer cars in Western Canada, providing services to about 45 percent of the producer cars ordered each year.
Located at the mouth of the Mission River in Thunder Bay, MTI handles an average annual volume of 240,000 tonnes of grain, about 25 percent of which arrives in producer cars.
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Over the past couple of years, Mission has worked to shore up its producer car business, investing in two short-line railways and four producer car loading sites.
“We’re going to do everything in our power to develop the producer car business, including further investments,” said chief executive officer Adrian Measner.
But the company also has other plans.
It now owns one primary elevator, a 6,000-tonne elevator at Alexander, Man., that it bought in July 2008 and manages another.
Measner said Mission plans to get more involved in the primary elevator business.
“We are looking to probably build not too far in the future,” he said. “We might purchase but more likely we’ll build.”
He said that won’t come at the expense of the producer car business.
Mission recently completed a major expansion, with the help of a $1 million grant from the Ontario government, building three storage bins totalling 16,000 tonnes and creating six jobs.
That will enable it to expand its business to include peas and lentils and more canola.
“Looking ahead, growth and diversification will be our focus,” said Measner.
The business ar rangement between Mission and the CWB came under fire earlier this fall, when a union official complained about favoured treatment for Mission due to Measner’s history with the board.
He was chief executive officer of the CWB for four years until December 2006.
“It is true that the CWB practice does bestow health on Mission Terminal but it is coming close to destroying the traditional base of Thunder Bay grain handling,” said Tom Hamilton, president of the United Steelworkers, which represents employees at the four other grain terminals at the port.
Mission is not unionized.
He called on politicians to examine the grain car allocation arrangement between the CWB and Mission.
“How did this system of preference for one company over all others come about?”
Measner said Hamilton’s comments were wrong and unfair.
“I no longer work for the board, I work for a commercial business and there is no special treatment,” he said.
He declined to describe the business arrangement between the board and Mission, citing commercial confidentiality.
“We’re open to do business with anyone who is interested in doing business with us.”
He said the bottom line is that Mission is giving farmers what they want.
David Przednowek, manager of ocean freight and terminal operations for the CWB, said the board deals with Mission because it benefits farmers.
“We direct tonnage to facilities based on the value proposition that they offer to the CWB and that generates the maximum value for farmers and Mission’s value proposition is very strong,” he said. “We look at it in terms of what’s best for farmers, not grain handlers in Thunder Bay.”
Mission offers shippers and farmers a variety of benefits, including direct savings of $3.85 to $5.30 per tonne, including a terminal incentive of $3.50.
Also available are advance payments of 75 percent of the value of a carload at time of shipment, guaranteed grading and blending to maximize producer revenue, immediate notification of unload results, prompt payment and fumigation rates that apply to an individual producer’s car.
