MILAN, KANSAS, U.S. — CHS and MKC announced on May 10 plans to build and operate a high-speed rail-shuttle grain storage and loading facility in Milan, Kansas, U.S.

Plans for the facility include 7 million bushels of storage including upright and flat storage with receiving capacity of 100,000 bushels per hour by way of trucks. Rail load-out capacity will be in excess of 80,000 bushels per hour and will include a circle rail track capable of holding 120 railcars in addition to mainline locomotives with access to the BNSF. 

Work on the project is expected to begin in May, with an anticipated completion date of May 31, 2017, weather permitting. The site is approximately 8 miles south of Conway Springs and 6 miles east of Argonia.

“The new assets will give area producers direct access and ownership in the supply and distribution chain, bringing them one step closer to world markets which will add value to our member-owner’s farming operations,” said Dave Christiansen, president and chief executive officer, MKC. “The new facility fully aligns with our vision to be a financially strong, progressive, locally-owned agribusiness for our member-owners.”

“CHS is excited to continue to expand state-of-the-art grain operations in the region with our partners at MKC,” said Mike Johnston, senior vice-president, CHS. ”This new project is a great example of how cooperative relationships, like the valuable one between CHS and MKC, demonstrate our collective commitment to providing access to all markets for producers’ commodities.”

The facility will be owned by Producer Ag, LLC, a limited liability company owned by CHS and MKC. Producer Ag, LLC is a 50/50 joint venture with a governing board of representatives from both CHS and MKC. The terminal will be operated by MKC. The LLC also operates a high-speed shuttle loading facility in Canton, Kansas, U.S. The LLC is a member of Team Marketing Alliance (TMA) which would handle grain marketing services for the Sumner County facility.