Northgate facility provides an alternative to Canadian rail system

As the home of the only grain-handling facility in Canada that has direct, high-speed service from a U.S. railroad, the commodity logistics hub at Northgate, Saskatchewan, gives its owner a unique position in the Western Canadian grain industry — and a unique view of the current grain backlog.

Opened in 2016, Ceres Global Ag’s facility, located adjacent to the North Dakota border in southeast Saskatchewan, gives Canadian commodities direct access to U.S. export destinations via the Burlington Northern-Santa Fe (BNSF) railway.

While the U.S. rail system has its own challenges, the Northgate facility offers an alternative to the two main railways in Canada, and a window into how shipments of Canadian grains work in a different regulatory environment — one without the maximum revenue entitlement, or “revenue cap,” on grain shipments.

Robert Day, Ceres’ president and Chief Executive Officer, joined Shaun Haney on RealAg Radio to discuss whether the current backlog has affected grain movement at Northgate, the evolution of the grain industry since the end of the Canadian Wheat Board, and how to increase export capacity from Western Canada to meet growing demand in Asia. Listen to their conversation, here:

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