New terminal for Peace
Viterra plans to build a high throughput grain terminal near Sexsmith, Alta., about 18 kilometres north of Grande Prairie, to meet growing market demand in the Peace area.
The concrete and steel facility will cost about $24 million. It will feature 30,000 tonnes of grain storage and 104 rail car loading capability, the company said in a news release.
“This investment demonstrates Viterra’s confidence in the future of grain production in the Peace River area,” said Mayo Schmidt, president and chief executive of Viterra, in the release.
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“The upswing in commodity prices has provided an incentive for farmers to convert forage and pasture land back into grain production.”
Site work is expected to start this fall with construction to start in the spring of 2009 and the first deliveries expected in August 2010.
The company plans to have an ag retail outlet at the Sexsmith terminal in the future.
FWS Construction Ltd. is the general contractor and Canadian National Railway will provide rail service.
Progress on new short line
Great Sandhills Terminal at Leader, Sask., has closed an interim non-brokered private placement in the amount of $716,250, raised primarily in Saskatchewan.
The money will be used in its plan to buy track for a short-line railway.
The offering was for a minimum of $450,000 and a maximum of $9 million, using exemptions from the prospectus requirements of securities legislation.
The company estimates that a final closing date for investors in the project will be Nov. 15.
The proceeds from the sale of the shares will be used to buy shares of Great Sandhills Railway Ltd., which was formed to buy the Canadian Pacific Railway’s Empress and Burstall subdivisions, and Hazlet spur line.
The 188 kilometres of rail line will cost $6.3 million.
Great Sandhills Railway plans to raise the money with a loan from the provincial government, other investors and financing from the CPR by way of a mortgage in favour of the CPR.
Equipment sales rise
Tractor and combine sales are running well ahead of last year. The Association of Equipment Manufacturers reports that total tractor sales in Canada to the end of August are up 25 percent from last year. Combine sales totalled 1,584 units, up 57 percent.
For tractor sales, the association said a total of 18,160 two-wheel drive units had sold in the eight months, up 23 percent from last year.
Sales of four-wheel drive units totalled 838, up 79 percent.
