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12-month cycle,” said Mowbray.
Not all competitors are taking the same
approach. In 2014, Viterra announced
three new high-throughput terminals
in Grimshaw, AB, Kindersley, SK and
Ste. Agathe, MB, as well as upgrades to
grain terminals at White Star, Humboldt,
Waldron and Ituna in Saskatchewan,
and Grassy Lake in Alberta. Viterra also
recently completed similar expansions
at Gull Lake and Fairlight, SK. Facility
upgrades alone will add 170,000 tonnes
of storage capacity to the system.
“We’ve been very active. The inland
and port expansion goes hand-in-hand,”
said Kyle Jeworski, president and CEO
for Viterra in North America, referring to
a $100-million upgrade at Viterra’s Pacific
terminal. “You can’t just expand inland
and have no place to go with it. The port
upgrade allows us to maintain balance.”
The new builds will incorporate the
latest automation technology, which
Jeworski said will provide unrivalled
receiving and loading capabilities. In
his words, this will “add velocity, reduce
cycle times and increase car capacity.”
“We have a lot of history in running
facilities, and we know where to tweak
to increase efficiency,” he explained.
“We won’t stand still. There have been
so many changes in the industry in the
last three to five years, and we need
to continue to evaluate and adjust
to support our farmer and end-use
customers.”
Parrish and Heimbecker, Limited is also
making significant investments to secure
its market share. The company’s new
elevator at Hanover Junction, just west
of Biggar, SK, will be open in time for the
2014 harvest, and another new elevator
is under construction in Gladstone, MB.
“We are trying to make sure that we
are geographically diverse as a way
to hedge against different weather
patterns and growing conditions,” said
John Heimbecker, the company’s vice-
president. “Our plans are driven by a
longer-term strategy, not deregulation
of the CWB or railway requirements. We
want to get to places that we currently
are not represented. Other points on the
map are still to come.”
Talk to anyone in the sector, and they
will tell you that having fast facilities is not
enough—the real prize is getting farmers
to deliver. Efforts to secure farmer loyalty
for grain delivery have been ramping up
with renewed competition in the sector.
“The only way to get market share is
by having yourself in a position to buy
grain in the country, though it doesn’t
hurt to have a terminal or two as well,”
said Mark Hemmes, president of
Quorum Corporation, the organization
responsible for monitoring grain
transportation for the federal
government. “The starting point to get
into the game is that you have to be
able to buy grain in the country and
MARKET SHARE:
Like many other grain companies Parrish & Heimbecker is expanding its
capacity across the Prairies. This is driven by the companies long-term development strategy.
Fall
2014
Grains
West
32
THEDECLINE INCANADA’S
NUMBEROF ELEVATORSOVER TIME
1963
1973
1983
5,288
Elevators
18,495,650
Capacity (mt)
18,507,120
Capacity (mt)
15,708,530
Capacity (mt)
4,468
Elevators
2,881
Elevators