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CHS and MKC plans new grain terminal in Milan, Kansas

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Dry Bulk,

CHS and MKC, a full-service farm cooperative offering a complete line of products, programmes and services throughout Kansas, intends to officially build and operate a high-speed rail-shuttle grain storage and loading facility in Milan, Kansa, US.

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

“CHS is excited to continue to expand state-of-the-art grain operations in the region with our partners at MKC,” stated 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.”

Work on the project is expected to begin in May and anticipate the completion date to be 31 May 2017 – with 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 CEO, MKC. “The new facility fully aligns with our vision to be a financially strong, progressive, locally-owned agri-business for our member-owners.”

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, Kansa. The LLC is a member of Team Marketing Alliance (TMA), which would handle grain marketing services for the Sumner County facility.

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