Four locations | Projects to increase rail capacity and improve grain handling are scheduled for completion by the end of 2013
Viterra is spending $20 million to upgrade four grain terminals in Sask-atchewan.
Facility upgrades at White Star, Humboldt, Waldron and Ituna will result in increased rail capacity at all four locations and improvements in grain receiving and handling systems, said Kyle Jeworski, Viterra’s president and chief executive officer for North America.
Rail car spots at White Star, Waldron and Ituna will accommodate 50 hopper cars after the expansions.
The Humboldt facility will have a 100-car spot.
The upgrades will also see on-site storage capacity tripled to 27,000 tonnes at White Star and doubled to 31,500 tonnes at Humboldt.
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White Star is located 15 kilometres north of Prince Albert, Sask. Humboldt is 100 kilometres east of Sask-atoon.
Jeworski said the upgrades will result in improved receiving and shipping speeds and enhanced operational efficiencies.
Handling times, throughput capacity and automation will be improved at each location.
“We’re always evaluating our infrastructure and … we’ve identified that these are four very important locations for us that we’ve had to improve the efficiency at,” Jeworski said.
“As they’ve advanced and they’ve progressed, farmers’ demands have increased so we’ve had to look at these facilities and ask how do we match them (to farmers’ needs)?”
All four expansions are slated for completion before the end of 2013.
“We’re at various stages with the different projects, some … have just commenced … and others … we’re just in the process of final contractor selection,” Jeworski said.
“For us, the big thing is the completion dates and having everything operational for the next crop year.”
In a May 15 news release, the company said facility upgrades are consistent with Glencore’s commitment to increase Viterra’s projected capital expenditures in Canada.
As part of its $6.1 billion deal to acquire Viterra, Glencore pledged to increase Viterra’s projected capital expenditures by more than $100 million over five years.
Jeworski said additional enhancements to Viterra’s North American assets will be announced as they take place.
“Our focus is obviously on expanding our North American business so we are evaluating our current asset network and also other opportunities within North America,” he said.
Before acquiring Viterra, Glencore also pledged to:
- Maintain Viterra’s head office in Regina and make it the headquarters for Glencore’s North American operations.
- Invest an additional $8 million in research and development initiatives, over and above Viterra’s projected expenditures.
- Contribute toward unspecified grain industry initiatives in Manitoba.
- Work with the Saskatchewan government to develop a Global Institute for Food Security and contribute to the project should the province initiate it.
Corporate restructuring is ongoing, and relocation of staff and positions from the Calgary office to Regina is expected to continue in the coming months.
