Who We Are
About Ceres Global Ag
Ceres Global Ag Corp. is focused on two primary businesses: a Grain Storage, Handling and Merchandising unit; and a Commodity Logistics unit.
Ceres’ Grain Storage unit is anchored by its 100% ownership of Riverland Ag Corp., a collection of eight grain storage and handling assets in Minnesota, New York, and Ontario having aggregate storage capacity of approximately 42.1 million bushels as at December 31, 2015. Riverland Ag also manages two facilities in Wyoming on behalf of its customer-owner.
Ceres’ Commodity Logistics unit is focused on the development of a Commodity Logistics Centre in Northgate, SK. The Northgate Commodities Logistics Centre is a state-of-the-art grain, agriculture services and oilfield supplies transloading site, which is being developed in conjunction with Riverland Ag and several potential energy company partners and connected to BNSF Railway.
Ceres also has a 25% interest in Stewart Southern Railway Inc., a short-line railway with a range of 130 kilometres that operates in South-eastern Saskatchewan.
Grain Storage, Handling & Merchandising
Ceres Global Ag.’s grain storage, handling and merchandising is anchored by its 100% ownership of Riverland Ag Corp. Riverland Ag is focused on cereal grain storage, customer-specific procurement and “process-ready” cleaning of specialty grains such as oats, barley, rye and durum wheat. Its comprehensive range of help customers manage the risks associated with the price, quality, and availability of these critical food grains.
Riverland Ag’s facilities are strategically located, with rail, truck and ship transportation logistics and close proximity to major grain-processing facilities in the United States. Many are at deep-water ports in the Great Lakes and along the upper Mississippi River, enabling the efficient global import and export of grains.
The majority of Riverland Ag’s facilities are qualified as ‘regular for delivery’ locations for certain futures contracts on the Minneapolis and Chicago exchanges, allowing the company to earn carrying charges against grain stored for delivery to the exchanges by matching deliverable cash inventories with futures contracts. Currently, the majority of Riverland Ag’s storage space captures grain arbitrage and merchandising opportunities. The balance is used to service third-party storage contracts with leading food and beverage companies, whereby the third-party owns the inventory and pays Riverland Ag for storage and elevation.
Northgate, Saskatchewan Commodities Logistics Hub
Ceres owns 1,500 acres of land at Northgate, Saskatchewan, where it is constructing a new commodity logistics hub including high-efficiency rail loops, capable of handling unit trains of up to 120 railcars. A grain handling and shipping facility and trans-loading and shipping oil will be the initial focus, followed by a logistics centre that will unload in-bound equipment and materials for Saskatchewan’s booming resource economy.
The Northgate Hub will connect to the BNSF Railway network, giving shippers direct access to customers in 28 American states, numerous Pacific and Gulf ports, and Mexico, along BNSF’s 32,000 mile network, including over 45 crude-by-rail destinations. Access to many other strategic interior locations and Atlantic ports are also available through the BNSF’s inter-line rail connections.
In January 2015, the company announced the arrival of 63 rail hopper cars from BNSF in Northgate, Saskatchewan. With the completion of the temporary grain transloading facility in October 2014 and the installation of the U.S. Customs trailer in late December 2014, the arrival of the rail cars signaled the commencement of loading and shipping operations for wheat and other agricultural commodities at Northgate.
Ceres anticipates sourcing wheat and grains from farms located throughout the southeastern Saskatchewan area for loading and shipment through Northgate. The build out of Northgate is expected to progress further, as Ceres is currently constructing a permanent, high speed elevator, with 2.2 million bushel storage capacity that will be capable of loading a 120-car shuttle train. This elevator is expected to be operational in October 2015 and completed in March 2016.
Stewart Southern Railway
Ceres owns a 25% interest in SSR, which is a 132km (82-mile) short-line railway that extends from Richardson, Saskatchewan (just southeast of Regina) to Stoughton, Saskatchewan. In February 2012, SSR began shipping oil from the Stoughton area, and with the expansion of the Stoughton oil trans-loading facility at the end of December 2012, capacity has increased to over 45,000 bpd, making it one of the larger crude oil-by-rail loading sites in Western Canada. In addition, SSR has developed a rail car storage program for shippers – further broadening its revenue and earnings profile. As SSR absorbs this growth, it will continue to seek out new business opportunities in grain, petroleum and other bulk commodity products.