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GrainsConnect Canada to be partner in Fraser Grain Terminal

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Dry Bulk,

GrainsConnect Canada, GrainCorp’s joint venture (JV) with Zen-Noh Grain Corp., has agreed to be a partner in the Fraser Grain Terminal, at the Port of Vancouver. Construction of Fraser Grain Terminal was announced by Canadian agribusiness Parrish & Heimbecker (P&H) on 22 November 2018.

Under the agreement, Fraser Grain Terminal will become a 50-50 JV between GrainsConnect Canada and P&H. The agreement is subject to regulatory approval.

Fraser Grain Terminal will connect GrainsConnect Canada’s high-capacity country delivery points directly to export markets, consistent with GrainCorp’s strategy to expand its grain origination footprint and increase access to global customers. It creates a fully integrated, high-speed and end-to-end supply chain for the company in western Canada.

In accordance with its share in the GrainsConnect Canada JV, GrainCorp will contribute CAN$35 million (AUS$36.3 million) over the next two years to support the construction of the new terminal. The joint ventures will continue to source additional funding from financial institutions. GrainCorp’s contribution will be made from existing cash and debt facilities.

Construction is expected to be completed by the end of 2020.

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