Viterra to build new W. Sask. capacity

Revised, April 3, 2014 — Viterra is hatching plans to return to the Kindersley area of western Saskatchewan with its own new high-throughput grain elevator.

The Regina company, now the Prairie grain handling arm of Swiss commodity firm Glencore Xstrata, announced Thursday its “intent” to build a new 34,000-tonne capacity concrete elevator at Kindersley with a 108-car rail spot.

The company hasn’t yet announced a start date or expected completion date for the new construction, a Viterra representative said Thursday.

While Viterra owns a 39,500-tonne capacity elevator on Canadian National Railway (CN) track at Rosetown, about 80 km east on Highway 7, the company hasn’t had its own site at Kindersley since last May.

That’s when Viterra, in a side deal as part of its takeover by Glencore, sold its Kindersley elevator and 18 others to Winnipeg’s Richardson Pioneer. The elevator, at 41,700 tonnes capacity, is now Richardson’s second-largest in Saskatchewan. [Related story]

Saskatchewan Wheat Pool, during its merger with Agricore United (AU) to form Viterra, sold its 22,500-tonne capacity Kindersley elevator in 2007 to Cargill.

AU had also held elevator space in Kindersley and nearby towns through its 50 per cent ownership of farmer-owned Prairie West Terminal, but sold that stake back to PWT in 2002. CWB, the former Canadian Wheat Board, took a 10 per cent share in PWT in January this year.

Kindersley — served by CN — also hosts a primary elevator owned by Canpulse Foods, along with the Richardson, Cargill and PWT facilities.

“Viterra has a long history of serving farm customers in the Kindersley area, and we are pleased to build on this relationship through a new state-of-the-art facility,” Kyle Jeworski, Viterra’s CEO for North America, said in a release Thursday.

The new site, he added, will support the company’s “ongoing strategy to optimize our footprint.” –– AGCanada.com Network

CORRECTION, April 3: A previous version of this article incorrectly stated Viterra had not operated a Kindersley elevator since 2007. We regret the error.

 

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