All eyes in the special crops industry are on CN Rail’s new Edmonton Grain Distribution Centre. Shippers want to know if it is worthwhile to shift container stuffing services from the ports to the Prairies, says a transportation analyst.
“(They) are going to be watching this carefully and closely,” said Bruce McFadden, director of research and analysis at Quorum Corp., Canada’s government-appointed grain transportation monitor.
Last week CN opened a $4 million terminal that is expected to load 20,000 containers per year with special crops and processed agricultural products such as malt and alfalfa pellets destined for markets serviced by west coast ports.
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It isn’t the first attempt at establishing a prairie container-stuffing facility. MCS Agri-Terminals built a $1.5 million terminal in Moose Jaw, Sask., three years ago but it has ceased operations due to what the owner contends was poor service from the railways and steamship lines.
If CN succeeds where MCS failed, its facility could become a prototype for future projects.
Promoters of a multibillion-dollar inland container port project proposed for Saskatchewan will be one of the groups keenly following its progress, said McFadden.
One special crops shipper is predicting a domino effect.
“I think the whole concept of inland container ports is something we’ll see more of,” said Blair Roth, special crops manager at Agricore United.
West coast ports don’t have the land base to handle all the containers moving in and out of the country, so it makes sense to shift the stuffing of the cubes back to the prairie region when possible, he said.
Located in northwestern Edmonton, close to the Yellowhead Highway, CN’s new facility consists of a 20-car capacity rail siding, with loading equipment that enables the transfer of grain from truck or hopper car into 20- and 40-foot containers.
CN said it will provide substantial cost savings for shippers who are increasingly moving product by container. Some of those high-value crops are being sent to Vancouver in covered hopper cars, stuffed into containers at the port and then trucked to dockside for loading onto ships.
“Eliminating an initial hopper car movement will lower many shippers’ costs,” said Peter Marshall, CN’s senior vice-president for the western region.
“Even if the product comes into Edmonton by rail, farmers will benefit by stuffing the containers in Edmonton instead of Vancouver. There are better rail connections and less congestion here.”
Roth agreed the facility should improve rail service and make Canadian special crop shippers more competitive worldwide. But before he commits to using the terminal, he wants to know what steamship lines will be servicing it and how much it costs to get product to the West Coast.
“Get a quote. If the money is right, hey, we’re there,” said Roth.
CN officials expect most of the grain will come from the Edmonton region but it could draw from as far away as Saskatchewan.
Don Deaville, president of Alberta Pulse Growers, said the new distribution centre will reduce the number of empty containers moving back to the West Coast, a frustration for many special crops shippers who can’t get their hands on the metal boxes.
“This will be a prime opportunity to be able to have those containers being full both ways. That’s certainly an advantage to the system.”
