CanEst Transit inaugurates its cleaning and containerization terminal for agricultural products

MONTREAL, Oct. 20, 2014 /CNW Telbec/ - In the presence of Aref Salem, the City of Montreal's executive committee member in charge of transportation, and several other distinguished guests, CanEst Transit today officially opened its new cleaning and containerization terminal for agricultural products, located directly on Port of Montreal territory.

CanEst Transit invested $20 million, primarily in the purchase of modern equipment to handle and load agricultural products. The Montreal Port Authority invested $4 million in the project to improve the building as well as road and rail access.

Completely renovated, the 91 silos with a total capacity of 68,000 tonnes are used to store and transship agricultural products. These products are then cleaned and placed in containers for export. "The fact that CanEst Transit is on port territory, right beside container terminals, lets us offer our customers fast, competitive service and great operating flexibility," stated CanEst Transit president Pierre Dagenais.

With a system on the cutting edge of technology, CanEst Transit can fill eight containers per hour.

Converting the former grain elevator into a containerization operation for agricultural products created about 100 direct jobs during the construction period. CanEst operations will initially be carried out by a team of seven people.

There is a strong trend in the agri-food industry to containerize agricultural products. According to the Seabury Group consulting firm, 12% of grain exported by sea around the world is now moved by containers. In its first year of operation, CanEst Transit expects to containerize 100,000 tonnes of grain, the equivalent of 4,000 TEUs (20-foot equivalent units).

"This project is well in line with the port authority's commitment to develop value-added operations allowing for a diversification of activities on the port while providing the shipping lines that serve the port with additional freight volume. This is excellent news for grain producers across the country, for the Port of Montreal, for the marine industry and for the City of Montreal," stated Sylvie Vachon, President and CEO of the Montreal Port Authority.

For Aref Salem, the City of Montreal's executive committee member in charge of transportation, this announcement is great news for Montreal's economic activity: "The Port of Montreal is a catalyst for initiatives, and CanEst Transit setting up operations on its territory is an excellent example. In addition to generating direct and indirect jobs, this business strengthens Montreal's position around the world as a leading intermodal platform. More than anything else, containerized traffic embodies the hub vocation of Montreal and CanEst Transit as one of the mission-critical cogs in the container supply chain."

Minister for Transport and Implementation of the Maritime Strategy Jean D'Amour, who though unable to attend the inauguration was keen to point out the positive impact of such a project for Quebec's economic development as part of the government's maritime strategy. "With the maritime strategy, we want to provide a business-friendly environment and create lasting prosperity for Quebec. We will do this in partnership with entrepreneurs and leaders such as CanEst Transit. Today, this company is demonstrating its vitality, its ability to be bold and to innovate. Thanks to it and all the other partners, we will seize every opportunity to ensure that Quebec becomes a global leader in the marine field." 

ABOUT CANEST TRANSIT

CanEst Transit Inc. is a joint venture between La Coop fédérée, Transit BD Inc. and MGT Holdings S.a.r.l.

Coop fédérée

Founded in 1992, La Coop fédérée is the largest agri-food company in Quebec, and ranks among the 100 largest co-operatives and mutual societies in the world, across all sectors. It is owned by more than 100,000 members grouped into 102 cooperatives located in several Canadian provinces. La Coop fédérée is present throughout the agri-food chain and, as well as being a wholesaler, it also provides agricultural producers with all the goods and services they require for their farming operations. The network has five banners: Elite and La Coop (animal and crop production, grain marketing) Unimat (hardware and farm machinery), Sonic (energy) and Olymel (meat processing). La Coop fédérée employs over 9,500 people, with sales totalling nearly $5 billion. Including its affiliated cooperatives, the La Coop network, employs over 15,500 people, with combined sales of $7.8 billion.

Transit BD Inc.

Transit BD Inc. is a holding company held by Le groupe Pierre Dagenais and Beaudier Inc., a private investment company held by the Beaudoin family.

MGT Holdings

MGT Holdings S.a.r.l. holds 100% of the shares of Montreal Gateway Terminals Partnership, which operates the Cast and Racine terminals in the Port of Montreal.

MGT Holdings S.a.r.l. is held by Morgan Stanley Infrastructure Partners, a $4 billion infrastructure fund of Morgan Stanley Investment Management.

ABOUT THE PORT OF MONTREAL

Operated by the Montreal Port Authority (MPA), the Port of Montreal is a major diversified transshipment centre that handles all types of goods – containerized and non- containerized cargo, liquid bulk and dry bulk. It is a leading container port served by the largest container shipping lines in the world.

The Port of Montreal handled 1,356,810 TEUs (twenty-foot equivalent units) in 2013, representing 11,896,671 tonnes of cargo. The port also handled 9,549,933 tonnes of liquid bulk, 3,912,531 tonnes of dry bulk and 2,638,159 tonnes of grain in 2013. Total cargo-handling volumes reached 28,156,971 million tonnes in 2013.

The Port of Montreal has its own rail network directly dockside. It is connected to the two national rail networks and a highway system. The port operates a passenger terminal that welcomed 69,966 passengers and crew members in 2013. All other terminals are run by private stevedoring firms.

Port activity supports 18,200 jobs and generates $1.5 billion in economic spin-offs annually.

SOURCE: Montreal Port Authority

Montreal Port Authority:Sophie Roux, Director of Communications, [email protected], Telephone: [phone], www.port-montreal.com; CanEst Transit: Réal Bélanger, General Manager, [email protected], Telephone: [phone], www.canest-transit.ca