Ceres Global Ag Announces Rail Connection at Northgate, Saskatchewan
Construction of Northgate Commodity Logistics Hub continues to move forward - will provide Canadian farmers and oil producers with new export option
NORTHGATE, SK, March 17, 2014 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the "Company") (TSX:CRP) today announced that it has reached an arrangement with U.S. Customs and Border Protection to complete the final railway construction to allow Ceres to connect its commodity logistics hub at Northgate, Saskatchewan, to BNSF Railway. Ceres expects to complete the connection as soon as weather conditions allow. This construction and the commensurate start-up of international services is expected to allow cross-border shipments to begin later in the year as handling facilities are completed at the new logistics hub.
Ceres will work closely with U.S. Customs and Border Protection (CBP), the Canada Border Services Agency (CBSA) and BNSF to meet all requirements necessary to safely and securely move cross-border rail cars for its customers.
"Connecting the Northgate Logistics Centre to BNSF and beginning customs services represent critical steps in facilitating customer shipments from Northgate," said Michael Detlefsen, President and CEO of Ceres Global Ag Corp. "Making this connection and ensuring customs services were the key remaining milestones in the preparation of the site. This project will provide Canadian farmers and oil producers with new, cost-competitive ways to get their products to market."
With construction proceeding, Ceres expects to complete the remaining site preparation and installation in order to begin initial operations later this year. Upon completion, it is expected to include a grain handling and shipping facility, a facility for transloading and shipping crude oil, as well as a logistics centre to unload imported equipment and materials for Saskatchewan's resource industry.
By connecting to the BNSF network, the Northgate hub will give shippers direct access to customers in 28 states, numerous Pacific and Gulf ports, and Mexico along the railroad's 32,500 mile network. Access to many other strategic interior locations and Atlantic ports will be available through BNSF's rail connections.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Ceres Global Ag Corp. is a Toronto-based company focused on two primary businesses: a Grain Storage, Handling and Merchandising unit, anchored by its 100% ownership of Riverland Ag Corp., and a Commodity Logistics unit, containing its 25% interest in Stewart Southern Railway Inc. and its development of the Northgate, SK Commodity Logistics Centre. Riverland Ag Corp. is a collection of ten (10) grain storage and handling assets in Minnesota, New York, Wisconsin and Ontario having aggregate storage capacity of approximately 51 million bushels. Riverland Ag also manages two (2) facilities in Wyoming on behalf of its customer-owner. Stewart Southern Railway Inc. is a short-line railway with a range of 130 kilometres that operates in South-eastern Saskatchewan. The Northgate Commodity Logistics Centre is a proposed $90 million grain, oil and oilfield supplies transloading site being developed in conjunction with Riverland Ag and several potential energy company partners, connected to BNSF Railway and expected to open in summer 2014. Ceres common shares trade on the Toronto Stock Exchange under the symbol "CRP".
Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information includes, but is not limited to, information concerning the proposed construction of the Northgate, Saskatchewan logistics hub by Ceres and matters relating thereto. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes" or variations of such words and phrases or statements that certain actions, events or results "will", "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include, without limitation, that construction will be completed on time and on budget, all necessary regulatory permits and approvals will be obtained and appropriate financing can be put in place. Many of these assumptions are based on factors and events that are not within the control of Ceres and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include unanticipated construction delays, weather, changes in environmental and other laws and regulations, competitive factors in agricultural sectors, labour, equipment and material costs, delays in obtaining necessary regulatory permits or approvals, unexpected increases in the budgeted capital cost, inability to secure appropriate financing for the Northgate project or the inability to negotiate efficient border processes going forward. Although Ceres has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results that are not anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
SOURCE Ceres Global Ag Corp.For further information:
Ceres Global Ag Corp. Investor Relations inquiries:
(416) 815-0700 ext. 238
Northgate Commodities Logistics Hub Media inquiries:
(416) 864-7112 ext. 2233