Canada's G3 Global Holdings LP will build a grain terminal at Port Metro Vancouver by 2020, increasing the flow of wheat and canola to Asia and Latin America, the company said on Wednesday. The Winnipeg-based partnership of Saudi Arabian agriculture company SALIC and US grain handler Bunge Ltd had been considering the project, which will cost more than C$500 million ($373.64 million), since last year.
Some in the industry worry the new terminal may worsen congestion at the port. G3 Global, which acquired the Canadian Wheat Board and Bunge's Canadian grain operations in 2015, is a small player in a Canadian industry dominated by Richardson International and Glencore Plc unit Viterra Inc.
The terminal, capable of handling 8 million tonnes of crops annually on the north shore of Burrard Inlet, would be the first new grain facility in nearly 50 years at the port, Canada's busiest. Canada, a major canola and wheat shipper, has recently produced some of its largest harvests ever.
The north shore is home to grain terminals owned by Richardson and Cargill Ltd as well as Neptune Terminals, which handles potash and coal. It is served only by Canadian National Railway Co track. Adding G3's terminal, which will store up to 180,000 tonnes of crops, and Kinder Morgan Inc's planned oil pipeline expansion, may "significantly exacerbate" congestion, said Wade Sobkowich, executive director of Western Grain Elevator Association, whose members include Richardson and Viterra. Without major government spending to ease bottlenecks and improvements through federal railway legislation, terminal investments may not produce net gains for the industry, he said.
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