Louis Dreyfous expands U.S. grain storage capacity
January 01, 2000
by Stormy Wylie
WILTON, CONNECTICUT, U.S. —Louis Dreyfus Corp. in recent weeks has acquired three U.S. grain elevators, including an 85,000-tonne export elevator at Beaumont, Texas, from ContiGroup Companies, Inc., and entered into an agreement to lease the Port of Houston Public Elevator.
The elevators acquired from ContiGroup, formerly Continental Grain Co., also included river facilities at Lockport, Illinois, and Caruthersville (Cottonwood Point), Missouri. They were among seven Continental grain elevators required by the U.S. Department of Justice to be sold in a 1999 agreement allowing Cargill, Inc. to acquire Continental's worldwide commodity marketing business.
The lease agreement with the Port of Houston Authority gives Dreyfus a five-year lease on the 170,000-tonne public elevator and an option to renew that lease for five years.
Port authority officials said that while the elevator had been "marginally successful" from a financial standpoint, ongoing industry consolidation made the property more valuable to a single customer who would have exclusive rights to the facility.