CANADA- Richardson International recently announced plans to expand eight Canadian Pacific Kansas City (CPKC)-served elevators in western Canada, allowing future trains to move from these sites under CPKC’s 8,500-foot High-Efficiency Product (HEP) model.
The James Richardson & Sons Limited-owned company originates and processes Canadian-grown grains, oilseeds, oats, and canola-based products.
According to the company, work on these elevators in Manitoba, Saskatchewan, and Alberta will start in the summer of 2023 and be completed by the end of 2024.
“Richardson is committed to Canadian farmers and providing growers with modern, high-efficiency facilities and services,” said Darwin Sobkow, Richardson’s president and COO.
Richardson International intends for the expansion of these grain elevators to benefit Canadian grain players, as well as those beyond Canada.
“Expanding eight elevators will increase capacity and efficiency, enabling Richardson to further benefit from CPKC’s single-line network reaching Canada, the U.S., and Mexico,” Sobkow added.
Richardson currently ships unit trains from 27 CPKC-served elevators in Canada and one in the northern U.S. The newest Richardson elevator at Carmichael, Saskatchewan, a greenfield grain elevator commissioned in early 2023, is their first 8,500-foot HEP site.
“CPKC is thrilled to have these Richardson elevators added to the growing list of already qualified 8,500-foot HEP sites across western Canada,” said John Brooks, CPKC’s executive vice president and chief marketing officer.
This expansion is bound to improve trading activities in Canada and its neighbors, creating the potential for increased profitability of grain elevation operations in the region.
“Richardson’s supply chain and CPKC’s operation will benefit from added efficiency, capacity, and fluidity with this investment. Richardson’s ability to run longer trains will mean more grain shipped per train, tighter cycles, and more Richardson trains moving across our expanded, single-line network throughout the season,” Brooks added.
Richardson has been investing in its elevation capacity for a long time, enhancing its existing capabilities in the food sector.
In 2021, Richardson acquired Italgrani USA Inc., including the largest North American durum mill in St. Louis, Missouri. The company said the CPKC single-line network creates a seamless pipeline to the Italgrani mill from the durum-rich areas in Saskatchewan to Richardson elevators.
Additionally, earlier this year, in April, the grain handler and merchandiser invested US$220m in modernizing its Wesson Oil facility in the US state of Tennessee, in response to rising international demand for vegetable oil.