Port of Indiana Mount Vernon
Port of Indiana-Mount Vernon in Mount Vernon, Indiana, U.S.
 
MOUNT VERNON, INDIANA, U.S. — Consolidated Grain and Barge Co. (CGB), a company in the grain and transportation industries since 1970, announced plans on Oct. 4 to expand its operations at the Port of Indiana-Mount Vernon in Mount Vernon, Indiana, U.S., investing more than $31 million to increase its soybean processing capabilities in southwest Indiana.

CGB’s processing plant was built in 1997. The facility currently has upright grain storage capacity of 4.317 million bushels and flat storage capacity of 1.002 million bushels, according to the 2016 Grain & Milling Annual. It processes soybeans into soybean meal, soybean oil and soy hull pellets for both food and industrial uses.

Since its initial construction, the plant has continued to increase its capacity. With the most recent expansion, the plant will have more than doubled its original size. According to CGB, one bushel of soybeans may produce 11 pounds of soy oil, which is commonly used for cooking, biodiesel and other industrial applications, and nearly 49 pounds of soymeal and soy hulls, which serve feed mills, poultry manufacturers and hog farmers.

“CGB is excited to announce the growth of its Mount Vernon location,” said Steve O’Nan, senior vice-president of CGB. “The soybean processing industry is very competitive, and this investment will allow us to remain competitive in the future. We are proud to be a part of Indiana agriculture and, with this expansion, will remain an important part of southwest Indiana’s agriculture community for many years to come.”

The company’s expansion will increase servicing opportunities for Indiana’s soybean farmers and increase product supply for agribusiness customers, according to the Indiana Economic Development Corp. Soybeans are the second-most planted field crop in the United States, and Indiana ranks third in the country for soybean production.

“Whenever and wherever we can, we seek to add value to our commodity products, and CGB’s expansion represents just that,” said Ted McKinney, director of the Indiana State Department of Agriculture. “With increased processing capabilities, this will strengthen the Indiana soybean industry and afford more opportunities for farmers in southern parts of the state. This is welcomed news for Indiana agriculture.”

CGB is headquartered just outside New Orleans, Louisiana, U.S., and is jointly owned by two Japanese organizations – Itochu Corporation and ZEN-NOH, a federation of agricultural cooperatives. The company’s Posey County facility is the only processing facility owned by the company, and its strategic location allows for multiple logistics options, including inbound and outbound barge, rail and truck transportation as well as outbound container shipping options. Approximately 60% of the facility’s volume is shipped via barge, utilizing the Port of Indiana-Mount Vernon.

“CGB is an outstanding company and this expansion makes a powerful statement about its commitment to a strong future for soybean processing in southwest Indiana,” said Phil Wilzbacher, port director at the Port of Indiana-Mount Vernon. “No other company has harnessed the logistics benefits of the Ohio River to serve the Indiana agriculture community better than CGB. This long-term Ports of Indiana partner has fully leveraged our port’s barge and rail connections to develop significant competitive advantages, which has guided its continued growth and investment in southwest Indiana.”

CGB Enterprises Inc. provides an array of services for producers, from buying, storing, selling and shipping of the crop, to financing and risk management. Natural extensions have included soybean processing, fertilizer products, as well as global transportation and logistics operations. The company has a network of nearly 100 grain elevators and terminals and serves food and feed customers in the U.S. and around the world and employs more than 2,500 associates in the country.

The Port of Indiana-Mountain Vernon transports product via water, road and rail. More than 3,600 barges, 160,000 trucks and 37,000 railcars pass through the port each year moving more than 4 million tonnes of cargo.

The Indiana Economic Development Corporation offered Consolidated Grain and Barge up to $45,000 in conditional tax credits based on the company’s investment plans. The tax credits are performance-based, meaning until Indiana residents are hired, the company is not eligible to claim incentives. Posey County approved additional incentives at the request of the Posey County Indiana Economic Development Partnership.