WINNIPEG, MANITOBA, CANADA — BroadGrain Commodities Inc. unveiled plans on Jan. 14 to invest up to C$25 million ($17.4 million) to build a new bulk grain export and trans-loading operation, and bean processing facility at the CentrePort Rail Park in Winnipeg, Manitoba, Canada.
The project helps pave the way for breaking ground on a new rail park at Manitoba’s inland port, Premier Greg Selinger said.
“The new CentrePort Canada Rail Park will provide us with a unique advantage when attracting rail-intensive businesses like BroadGrain to Manitoba,” said Selinger. “This is the kind of infrastructure development and partnership with private business will help boost our economy and create good jobs.”
BroadGrain is a global marketer and handler of grains, oilseeds, byproducts and specialty crops, with international offices in Europe, Asia, Africa and the Middle East. It will be the Toronto, Ontario, Canada-based company’s flagship terminal in Western Canada. Subject to completing due diligence and an offer to purchase agreement, BroadGrain’s new operation will be located on approximately 29 acres.
“BroadGrain’s project is an ideal anchor for our new rail park,” said Diane Gray, president and chief executive officer (CEO) of CentrePort. “They are in need of high-volume rail services in order to move the highest quality of products, which ultimately is the objective of our first phase of development. We are thrilled to be working with a successful, global agribusiness corporation like BroadGrain.”
BroadGrain Commodities’ CentrePort operation will include loading 150-car unit trains with Manitoba commodities including wheat, canola, soybeans, corn and specialty crops. The new campus facility will include terminal storage, trans-loading and processing capacity.
“As we started looking at potential greenfield sites to continue expanding our footprint in the west, we were impressed by the value proposition at CentrePort and the potential for our project to become an anchor development in the new rail park,” said Zaid Qadoumi, president and CEO, BroadGrain. “It’s been a very positive process. Supply chain management continues to play a vital role in our business. This investment will solidify our ongoing commitment not only to the Western Canadian farmer but also to our global consumers providing an alternative shipping method.”
For CentrePort, BroadGrain’s investment triggers the construction of phase I of the new CentrePort Canada Rail Park. CentrePort is investing C$2.4 million to build the lead tracks and switches off the Canadian Pacific Railway mainline (CP Rail Carberry Subdivision), which will connect to BroadGrain’s dedicated tracks. These lead tracks and switches will be owned by CentrePort and will service additional projects as the rail park develops.
The Province of Manitoba will provide tax increment financing (TIF) revenues from the Community Revitalization Fund to assist with the construction of rail leads and switches. The province is also realigning PR 221 to support rail park development.
CentrePort Canada is Manitoba’s 20,000-acre inland port and foreign trade zone. The new rail park is being built on 700 acres located just south of the CP mainline and west of CentrePort Canada Way. The rail park is being developed in phases as further projects are secured in order to ensure the development is fueled by industry needs.