All posts by mickeybarb@charter.net

Transportation

Arkansas River, Illinois River, Market Watch, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

U.S. Gulf:

Calcasieu Lock navigation restrictions remained in place during daylight hours through the week. The restrictions were expected to run through late August, blocking Monday-Thursday travel between the hours of 7:00 a.m. and 6:00 p.m. Waits were observed up to 12.5 hours on June 21.

A guidewall replacement project underway at Bayou Sorrel Lock was noted blocking Monday-through-Friday travel between 6:30 a.m. and 5:00 p.m. The shutdowns were scheduled to end in early 2023. Delays were reported as high as five days during the week.

Brazos Lock travel was unavailable during daylight hours on Monday through Friday. The project was tentatively anticipated to run through June 30. Players reported the location closed to travel between 7:00 a.m. and 5:00 p.m., triggering delays of up to 10 hours during the period.

Draft limits remained in effect at Miles 113-116 on the Atchafalaya River, a Coast Guard posting indicated, due to shoaling reported in the Morgan City, La., area. Draft limits were imposed at a maximum 10 feet, while towing lengths and widths were noted at 600 feet and 70 feet, respectively. Tows longer than 400 feet were advised to travel with an assist boat. Tows were invited to skip the restrictions by transiting through the Port Allen Route instead.

Ongoing length and width restrictions in place at Algiers Lock had the effect of limiting unassisted tows to four standard barges or two 30,000 mt tankers per turn. Wait times were typically seen in the 6-11 hour range during the week, falling from 50 hours reported previously. Larger lockages were possible when traveling with an assist tug.

Construction work underway at the Belle Chasse Bridge, located at Mile 3 in the West Canal, was scheduled to run through the end of 2022, triggering delays of up to 12 hours at a stretch.

Port Allen Lock wait times were quoted in a wide 10-35 hour range through the week. Boats passing Industrial Lock were delayed up to 51 hours.

Mississippi River:

A heat dome moving across the U.S. impacted travel on the middle and lower sections of the Mississippi River during the week, causing limited delays to navigation, infrastructure and vessel repairs and maintenance, and loading operations. A heat advisory was in effect for the Vicksburg, Miss., area on June 22.

Power line maintenance scheduled for Mile 107 of the lower river was expected to begin in early July. Daytime transit interruptions were likely, although few details were available on June 22.

The lower river’s Old River Lock, a primary connector between the Mississippi and Red Rivers, will close for miter gate installation from Aug. 30 through Nov. 13, completely halting navigation through the location. Tows seeking access to the Red River will be advised to detour through the Atchafalaya River.

Navigation impacts to southbound travel, reportedly due to rock-placement work at Mile 807 that began on May 10, were reduced during the week as work moved to locations outside of the navigational channel. Previously, the operation was noted blocking southbound travel daily between 6:00 a.m. and 6:00 p.m.

A salvage operation to lift a sunken barge at Mile 49 on the upper river concluded during the week, earlier than expected. Maximum barge counts were reportedly reduced to 20-30 units while work was underway.

Intermittent Lock 8 wait times were observed in the 4-12 hour range during the week. Lock and Dam 21 reported zero lockages through June 22, while nine-hour delays were seen at Mel Price Lock on June 19.

Illinois River:

A maintenance and repair project currently underway at Brandon Road Lock was noted impacting navigation during the week. Set to run through Sept. 8, lockages are limited to overnight hours from May 9 to Aug. 14. The lock will shut to traffic completely between Aug. 15 and Sept. 4, while overnight navigation will return on Sept. 5-8. Normal operations are projected to resume on Sept. 9. A 70-foot width limit is in effect through the entire project. Delays were reported at 6-13 hours during the week.

Sources reported raised wickets at Peoria Lock, triggering locking delays of up to 20 hours. Wickets were down at LaGrange Lock, however, allowing vessels to transit through the navigational pass. Marseilles Lock waits were noted up to five hours during the week.

Ohio River:

Shoaling reported at Mile 926 on the Ohio River triggered a navigational shutdown in the area early in the week, sources said. Work was underway to reopen the area, although 10-foot draft limits were instituted for the full length of the river due to the conditions, complicating movements for heavier barges currently on the water. Delays at Smithland Lock were reported up to 30 hours as a result.

Belleville Lock kicked off a planned main chamber shutdown on May 1, prompting tows to run solely through the auxiliary chamber until June 29. Early-week delays were reported in the 36-62 hour range. Both chambers at the site were shut to navigation on June 22-24. Prior to the shutdown, delays were counted up to 15 hours.

The main chamber at Greenup Lock was also closed to navigation from May 1 to June 29, leaving transit possible solely through the secondary chamber. Waits for the week peaked at 17 hours on June 19-20, rising from 3-11 hours noted previously.

The Corps announced a round of inspections at Cannelton Lock slated for June 24-25, which are expected to close the site to vessel travel. Wait times topped out at 3-4 hours ahead of the shutdown, but were projected to swell to 24 hours or more while the inspections were underway.

The site’s main chamber is slated to close for repairs and maintenance from July 5 through Nov. 11, forcing detours through the secondary chamber. The secondary unit is shut through July 1 for anchor arm replacement in preparation for the main chamber project.

A proposed Hannibal Lock primary chamber repair and maintenance shutdown could trigger detours through the auxiliary chamber from July 5 through Oct. 8.

Wait times at the Tennessee River’s Kentucky Lock were reported in a wide 9-45 hour range for the week. Wilson Lock passages required up to 13 hours, Corps data indicated.

Cheatham Lock miter gate machinery repairs, underway since May 16, resulted in a repeating 11 days closed, three days open navigation pattern. The project was slated to continue through Aug. 5, with substantial delays predicted.

Arkansas River:

The newest round of planned repairs and maintenance at Norrell Lock kicked off on June 22, blocking navigation daily between 7:00 a.m. to 7:00 p.m. through July 21. The travel restrictions were scheduled to repeat on Aug. 1-10; Aug. 21-Sept. 21; Oct. 20-Nov. 18; Nov. 29-Dec. 23; and Jan. 3-31, 2023. Access to the site will be completely unavailable between Sept. 30 and Oct. 9.

Joe Hardin Lock is scheduled to shut to tows from 7:00 a.m. to 7:00 p.m. daily on Sept. 12-19. The location was expected to undergo a complete navigation shutdown from Sept. 20 to Oct. 9.

Angolan Fertilizer Project Reported

Africa, News, News Briefs, Urea

The Angolan government plans to invest some $2.2 billion in a fertilizer complex that would produce 3,500 mt/d of urea, according to a report in Ver Angola. The foundation stone for the project is expected to be laid on June 28, according to the newspaper, with final construction completed in 2026. The project would serve the domestic market as well as exports, most likely to other African countries.

Financing is reported to be led by Afreximbank. Opaia Industria and Sonagas, a subsidiary of Sonangol, are reported to be involved in the project, as well as technology adviser Saipem.

Urakali, Uralchem Cut Exports by 25-30%, Report Says

Europe, News, News Briefs, Russia

Uralkali PJSC and its parent company, Uralchem JSC, Moscow, have cut exports of fertilizer products by 25-30% this year to date, Interfax has reported, citing Uralchem CEO Dmitry Konyaev.

Following the imposition of European Union (E.U.) sanctions against Russia following the invasion of Ukraine, Uralchem has been unable to ship product via its two terminals in Latvia, and shipments are only being made through ports in Russia’s Leningrad region, according to the report, citing the CEO.

In Latvia, Uralchem holds a 51% stake via subsidiary company Uralchem Freight Ltd. in Riga Fertilizer Terminal LLC, a joint venture with Riga Commercial Port LLC (49% stake). Uralchem is also the controlling shareholder, with a 55% shareholding in SIA Ventamonjaks in the Latvian port of Ventspils. Ventamonjaks is the largest liquid ammonia transshipment terminal on the Baltic Sea, with capacity for over 1 million mt/y of ammonia.

Uralkali, on the other hand, has boosted its sales of potash delivered by rail to China this year by 1.5 times, according to the report.

Russian potash production, which includes production by both Urakali and EuroChem Group AG, in April fell 47.6% year-over-year and 40.4% compared with March, to 0.4 million mt of active ingredient, according to an Interfax report earlier this month, citing the Russian Federal State Statistics Service (Rosstat) (GM June 17, p. 30).

House Republicans Accuse Biden of War on Agriculture; Urge Action on Multiple Fronts

News, News Briefs, U.S.

House Republicans on June 13 sent a letter to President Joe Biden urging the White House to loosen “federal regulatory barriers and policies” that they said are “creating uncertainty for U.S. farmers and ranchers” and are “undermining America’s ability to meet the food and fiber needs of the globe.”

Led by House Minority Leader Kevin McCarthy (R-Calif.) and G.T. Thompson (R-Pa.), Ranking Member on the Agriculture Committee, the lawmakers framed their demands along four key points, urging the White House to address rising farm input costs; recently proposed changes to the Waters of the U.S. (WOTUS) rule; a refocus of the U.S. EPA on “sound science;” and an end to “onerous” climate rules.

The letter accuses the Biden administration of neglecting to “take serious action to increase American production” in the wake of “fractured supply chains, skyrocketing input costs, and historic levels of inflation.” Russia’s invasion of Ukraine, the letter states, “further disrupted the global food system, resulting in increased energy prices, fertilizer cost spikes and shortages, and worsening food shortages in developing countries.”

Regarding farm input costs, the letter said agricultural producers are paying 115% more for diesel, while natural gas is up 202%. “Fertilizer inputs such as nitrogen, phosphorus, and potassium increased 125% in cost from January 2021 to January 2022, and an additional 17% in the first three months of 2022,” the letter states.

The letter urges the administration to provide “immediate relief” by withdrawing recently proposed revisions to the National Environmental Policy Act (GM April 29, p. 30); allowing phosphogypsum to be recycled in road construction or other uses; updating the definition of critical minerals to include potash and phosphate; and taking steps to increase domestic energy exploration, production, and transport, including increasing oil and gas leasing on federal lands and waters, and expediting pipeline permitting.

The letter further urges the Biden administration to reverse its recently proposed changes to the WOTUS rule and to end the “regulatory red tape nightmare” that has resulted from vague definitions of what constitutes a federal waterway.

The letter also takes the Biden administration to task for recent EPA regulatory decisions such as prohibiting the use of chlorpyrifos on food crops and reversing “longstanding policy” related to federal preemption with the “politicization of crop protection tools” such as glyphosate.

Finally, the letter charges that the Biden administration’s “war on agriculture” has been expanded most recently through a proposed Securities Exchange Commission (SEC) rule, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” House Republicans allege that this rule, issued on March 22, would place an “onerous” requirement on farmers, regardless of size, to track and report scope 3 emissions data to the companies with which they work.

“In short, your administration’s federal regulatory barriers and policies are undermining America’s ability to meet the food and fiber needs of the globe by creating uncertainty for U.S. farmers and ranchers,” the letter concludes. “We cannot afford to continue without a comprehensive plan to reverse course on this destructive agenda and address this crisis. We request that you immediately meet with Congressional members to develop a plan that restores domestic production and allows American farmers to lower food prices at home and provide critical humanitarian aid abroad.”

Valley Wide, Bleyhl Farm Service to Pursue Merger

News, News Briefs, Pacific N.W.

Two regional cooperatives in the Pacific Northwest – Valley Wide Cooperative in Nampa, Idaho, and Bleyhl Farm Service in Grandview, Wash. – announced on June 10 that their boards of directors have voted unanimously to sign a Letter of Intent (LOI) to pursue a merger.

Both cooperatives said a “robust due diligence” process will continue, with each business calling a meeting of members to vote on the proposed merger later this summer. No other details were provided about the merger proposal.

Valley Wide offers agronomy, feed, fuel and propane, and farm supply products and services from more than 80 locations in Idaho, Wyoming, Utah, Oregon, Nevada, and Washington. The company’s operations include 24 agronomy locations, 18 retail stores, 15 propane plants, and a feed center. Total sales in 2020 were $500 million.

“Our mergers are not about becoming part of a big organization that throws its weight around. It’s about local cooperatives in communities across the PNW working together under one brand, leveraging that brand and unified volume to take the advantage back to all the communities and customers we serve,” said Dave Holtom, CEO of Valley Wide.

“Let’s face it, agriculture and energy are global enterprises. It will take all of us working together to not only compete, but to flourish. We intend to do both, and we look forward to the Bleyhl Co-op being a part of it,” he added.

Bleyhl Farm Service is a diversified, farmer-owned co-op providing growers with agronomy, orchard and vineyard, energy, and retail services and supplies from Washington locations at Grandview, Sunnyside, and Zillah. The company has more than 800 member-owners and over 4,000 customers in south-central Washington, with $75 million in annual revenue.

“By merging with Valley Wide Cooperative, we are positioning our cooperative and its farmer-owners to take advantage of the leverage, scale, and resources of a combined $750 million farm supply organization,” said Joel Marcott, CEO of Bleyhl Farm Service. “This alignment will empower our cooperative with the supply chain, capital, and the network to remain competitive against other agribusinesses while protecting the values associated with the cooperative model. Joining forces creates additional buying power, the diversification of seasonal risk across greater geography, and access to resources to meet the challenges of an increasingly competitive industry.”

Valley Wide has been in an expansion mode. Last September the company completed a merger with Ag Link Inc. in Reardan, Wash. (GM July 16, 2021), and earlier last year it acquired Saddle Mountain Supply Co., an ag retail business in central Washington with four agronomy centers (GM Jan. 22, 2021).

Conserv FS Plans Major Expansion in Illinois

Eastern Cornbelt, News, News Briefs

Conserv FS on June 16 announced plans for a major expansion that will double storage capacity at the company’s Caledonia Service Center in Caledonia, Ill. The planned updates include a new 6,000-ton dry fertilizer building, a crop protection products warehouse, and a one-million-gallon bulk liquid fertilizer storage tank.

“At Conserv FS we are committed to serving the farmers of today while planning for the future and the needs of the next generation of farmers,” said General Manager Dave Swigart. “We’ve been serving agriculture for nearly 100 years, and this new project at our Caledonia facility demonstrates our commitment to the future of agriculture in our territory.”

The groundbreaking for the project is scheduled for June 23 at 2:30 p.m., and the expanded facility is expected to be complete in 2023. Conserv said both the dry fertilizer building and the liquid facility will contain automated systems integrated with ordering, operations, and accounting software, which the company said will provide a “greatly streamlined processes and improved flow of information” to customers in northern Illinois and southern Wisconsin.

The general contractor for the project in Greystone Construction, which also worked on a $12 million expansion of Conserv’s Waterman, Ill., facility in 2021 (GM Oct. 1, 2021). That project included a new 7,500-ton dry fertilizer building, 72,000 gallons of bulk crop protection product storage, and 1.3 million gallons of liquid fertilizer storage.

“We are honored to be partnering with Conserv FS again,” said Colin O’Brien, Greystone VP of Business Development. “It was a privilege to work with the Conserv FS team on the Waterman Service Center, and we look forward to a successful project in Caledonia.”

Incorporated in 1928 and headquartered in Woodstock, Ill., Conserv FS is an agricultural cooperative offering agronomy, agri-finance, precision agriculture, nutrient management, energy, feed, grain, and turf products and services. The company is part of the Growmark system, and operates 13 service center locations throughout northern Illinois and southern Wisconsin.

CHS to Expand Grain Facility in Minnesota

News, News Briefs, Northern Plains

CHS Inc. announced on June 14 that it will begin construction this summer on a new state-of-the-art grain facility in Erskine, Minn., with 1.25 million bushels of additional storage capacity. CHS said the facility is slated to be operational in the fall of 2023 and will help the company expand operational capabilities and increase efficiency across its footprint.

“Our people, assets, capabilities, and operational footprint are the strengths of our retail platform, and this important project advances our strategy to expand our customer-focused retail solutions platform, creating value and driving growth for farmers, as customers and owners,” said Rick Dusek, Executive Vice President of CHS Ag Retail Operations. “This facility is a key location in the flow of grain from the Upper Midwest to export terminals in the Pacific Northwest.”

The new shuttle elevator will bring total capacity at the Erskine location to 4.55 million bushels of storage. CHS said the expansion will also complement existing CHS grain, agronomy, and energy assets and offerings for area producers. Vigen Construction of East Grand Forks, Minn., is overseeing the project.

“Along with expanding our grain handling capabilities and value to area farmers, the new facility will create advantages for our employees, farmers, and community,” said James Hardy, Manager of CHS Northern Grain, a CHS business unit with 11 grain facilities in northwestern Minnesota. “Improved traffic flows, better operating conditions, advanced equipment, and the latest safety advances are just some of the innovations to help us provide a better customer experience. We want to get producers in, out, and back to the field as quickly and safely as possible.”

LSB Industries Inc. – Management Brief

Management Briefs, Southern Plains

LSB Industries Inc., Oklahoma City, announced on June 15 that Brian Jensen has joined the company as Director of Corporate Development, effective June 14, 2022. In this newly created position, he will be dedicated to evaluating project investments, cultivating business development partnerships, and identifying and pursuing potential merger and acquisition (M&A) opportunities, among other responsibilities.

“We are very pleased that Brian has joined our senior leadership team as our Director of Corporate Development,” said Mark Behrman, LSB’s President and CEO. “We believe his knowledge and experience will enable us to leverage our operational performance and financial position, which are the strongest in Company history, in order to propel LSB into our next phase of growth in profitability, cashflow, and shareholder value. I’d like to welcome Brian to LSB and look forward to working with him.”

LSB said Jensen has more than 15 years of experience in corporate development and investment banking with global organizations. Most recently, from 2017-2022, he was Director of Corporate Development for China Road and Bridge Corp., a global transportation, engineering, and construction company, where he performed a critical role in driving M&A, investment projects, joint ventures, and other corporate transactions.

From 2006-2016 he was with BMO Capital Markets, where he was a Vice President in the firm’s investment banking practice. In this capacity, he was responsible for identifying, evaluating, negotiating, and executing mergers and acquisitions, partnerships, and transaction financing, with a focus on the industrials and infrastructure sectors.

Jensen holds a Bachelor of Business Administration degree with a concentration in Finance from the Questrom School of Business at Boston University. He also served in the U.S. Army.

Marcus Construction – Management Brief

Management Briefs, Northern Plains

Marcus Construction, Willmar, Minn., on June 10 announced an exclusive relationship with Steve Swift as a Project Adviser focused on the design of liquid fertilizer storage and chemical and seed warehouses. Marcus said after spending the past 30 years with Kahler Automation, he brings substantial knowledge to the Marcus Construction team and will provide an incredible benefit to their customers in helping them discover the most efficient solution for their business and operational needs.

“At Marcus we are constantly looking for ways to grow and enhance our building solutions,” said David Klima, Vice President of Marcus’ Agricultural Division. “With the addition of Steve as a resource, we just elevated the knowledge specific to liquid fertilizer, chemical and seed storage, and process plumbing immensely for our customers. A customer can truly make one phone call to Marcus, and we have the expertise to turn-key both their dry fertilizer storage as well as their liquid fertilizer and chemical storage needs.”

Marcus Construction is a complete general contractor that design-builds dry fertilizer storage, warehouses (chemical, seed, liquid fertilizer, bulk, and packaged products), office and training centers, and complex renovation projects.

ResponsibleAg – Management Brief

Management Briefs

Tim McArdle, immediate Past Chair of ResponsibleAg and retired COO with Brandt, Springfield, Ill., will serve as ResponsibleAg Industry Ambassador, according to Gary Vogen, Board Chair and Vice President of Corporate and Regulatory Affairs at Yara International ASA, Oslo.

“Tim will work with agribusinesses and organizations throughout the industry to ensure all stakeholders understand ResponsibleAg’s purpose, as well as the individual and collective benefits its initiatives provide to help improve compliance and safety throughout our industry,” said Vogen.

“Tim is a well-respected industry veteran and committed volunteer supporting ResponsibleAg since its beginning. He has a wealth of knowledge about the needs and operations of the ag retail industry and is a valuable resource for the organization,” Vogen continued. “We’re excited he will continue to support ag retail by helping even more businesses achieve ResponsibleAg. McArdle, who will be working part time from Illinois, will be at industry events in coming months.”

ResponsibleAg is a not-for-profit organization founded in 2014 to promote the public welfare by helping agribusinesses comply with federal environmental, health, safety, and security rules related to the safe handling and storage of fertilizer and crop protection products. The organization provides participating businesses with a federal regulatory compliance assessment regarding the safe storage and handling of fertilizers and other crop inputs, makes recommendations for corrective action where needed, and offers a robust suite of supporting resources. For more information, go to www.responsibleag.org.