Sectors hopes strong demand for grain will continue.
Ottawa-Grain terminals in the ports of Thunder Bay, Vancouver and Port Rupert and the railways have stayed busy so far this year with strong movements to foreign customers.
The Thunder Bay terminals “are experiencing a surge in grain throughput,” says CEO Tim Heney of the Port of Thunder Bay. “The global pandemic has created voids in grain supply as some countries restrict exports and consumers stock up on staple foods. Amid the pandemic, with enhanced precautionary measures in place, partners along the supply chain from Canadian farm to merchant ship are demonstrating the commitment of the Canadian grain industry to fill the increased demand.”
Grain is moving in both ocean-going vessels and lakers, which deliver cargo to ports along the St. Lawrence River for loading in ocean vessels. “The sharpest increase has been in direct exports; deliveries to ports in France, Italy and Morocco have all risen,” he said.
“The capability of this supply chain and the commitment of the partners all along the supply chain, are really shining through during this unprecedented time. The railways, stevedores, grain elevators, inspectors, and mariners to name a few, are handling increased trade despite the challenges posed by the pandemic. They are keeping commodities flowing to parts of the world that could otherwise see a food shortage.”
Rail traffic has increased significantly at the port in recent weeks. Weekly figures ending April 28 indicate grain railcar volume nearly doubled in Thunder Bay compared to the same week last year.
The 2019 crop produced the second-largest harvest on record for Western Canadian farmers. On-farm stock at the end of December was at record-high levels.
CP Rail said it moved a best-ever monthly total of 2.8 million tonnes to ports in April bettering its November 2019 record by more than 100,000 tonnes.
Joan Hardy, Vice-President of Sales and Marketing Grain and Fertilizers, said, “By working collaboratively with our customers from field to port, we have been able to find synergies and efficiencies to drive the grain supply chain forward. CP's service excellence and best-in-class team have enabled us to move more grain steadily throughout this crop year, with an impressive surge in April as the Port of Thunder Bay opened for the spring shipping season."
In the first four months, CP moved six percent more grain this year than at the same point last year, and 8 percent more than the previous three-year average.
CP's investment in high-capacity hopper cars will see 5,900 new cars added to the railway's grain shipping fleet. CP's fleet of new grain cars, now at more than 2,500, is adding more than 1.1 tonnes of extra grain per railcar compared to the same period last year. The new hopper cars can carry 15 percent more volume and 10 percent more weight compared to the older cars they are replacing.
CN said it had its second best first quarter grain movement result with 6.59 million tonnes moved and in April exceeded its previous best for that month.
Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.