Regina-based pulse and specialty crop exporter AGT Food and Ingredients has signed a 20-year deal for access and certain exclusive rights to a new agriculture export terminal to be built at the Port of Vancouver.
The long-term service agreement with Fibreco Export Inc. is pursuant to the B.C.-based forestry products exporter building a new crop export terminal at its current bulk handling and loading facility in Vancouver.
AGT says the port facility will include approximately 43,000 metric tonnes of dry bulk storage, rail capacity to receive full unit trains, and a new shiploader and expanded ship berth capable of loading Panamax vessels.
“With our investments in logistics, rail and bulk handling, access to tide water at port is an essential infrastructure piece, particularly on the west coast of Canada where access to port facilities is in limited supply to reach key markets in Asia. Our services agreement with Fibreco for port access in Vancouver complements our shortline rail system and works in concert with our recent investment in CanEst in Montreal,” said AGT president and CEO Murad Al-Katib in an announcement from the company on Monday. “Much as we did with the CanEst investment through an east coast port, our agreement with Fibreco allows us to take control of our logistics chain from farmers through our shortline rail system to move unit trains through Vancouver to vessels for shipment to our global network of clients.”
“This agreement with Fibreco allows us to target increased volumes to our key markets for pulses as well as diversified products such as durum wheat and other agri-commodities,” added AGT chair Huseyin Arslan.
Fibreco, which has exported wood chips and pellets from Vancouver for 40 years and is majority owned by an affiliate of Tolko Industries, is looking to diversify the products it handles.
A project permit has been granted by the Vancouver Fraser Porter Authority. Approval of a development permit from the District of North Vancouver has also been requested and is the last major condition for the service agreement with AGT.