WINNIPEG – A consortium of about 20 Canadian agri-business firms are putting the Team Canada concept to the test.
Companies ranging from Monenco Agra to contracting heavyweight The Foundation Co. Inc. plan to work together to secure $400 million worth of work in a series of grain handling infrastructure projects in China.
“This particular venture is certainly the first commercial private-sector-driven Team Canada venture so far,” said Don Neufeld, a director with Agri-Tec Canada, which is spearheading the effort.
“There’s been a lot of talk about Team Canada, but so far (it has been) kind of an attitude more than an actual organization.”
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Neufeld said firms started meeting a few months ago to consider building an alliance to bid on parts of the project, which is worth $980 million and is funded by the World Bank.
The primary components of the project include three grain handling terminals each worth between $100 million and $300 million (U.S.) The project will later involve 20 to 30 smaller requirements, such as intermediate depots and inland terminals and 2,400 rail cars.
Some of the projects are turn-key, meaning contractors will work on them from start to finish. Other contracts will be for engineering or management expertise.
Neufeld said the first tender documents should be out by early March, while others will be issued over the next year and a half.
The alliance is unique in the number of companies involved. For this mega-project, China wanted to deal with only one entity, so the diverse group of agri-business firms got together.
There is still room for more partners, depending on requirements in bid documents.
So far, member companies have paid the organizational costs. Neufeld said activities may be financed using shareholder fees, commissions from successful bids and perhaps government funds.
The alliance, referred to as “Canada Inc.” until another name is selected, will likely compete against firms from Australia, the U.S., the Netherlands and Switzerland.
It won’t be easy, he said, “But Canada’s a world leader from a grain handling perspective, and also given the unique relationship that Canada has with China, we should have a very reasonable shot at the business as long as we get our act together.”
