All posts by mickeybarb@charter.net

Transportation

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

U.S. Gulf:

Tropical Storm Claudette made landfall in Louisiana on June 19 after strengthening from a tropical disturbance earlier that day. Claudette promptly turned toward the Northeast, slogging through Mississippi, Alabama, Georgia, and the Carolinas. Claudette’s remnants strengthened into a tropical storm again on June 21 before pushing into the Atlantic, threatening to disrupt shipping lanes along the Eastern Seaboard.

Inclement weather left over from Claudette continued to disrupt navigation in the Gulf and Canals on June 22-26, sources indicated. A tropical disturbance located north of the South American country of Guyana on June 24 was unlikely to strengthen into a named storm prior to June 26, the National Hurricane Center (NHC) reported.

Damage to the Port Allen Lock guidewall continued to demand towing restrictions through the site. Assist vessel use was mandatory on all westbound tows of two barges or more, while eastbound boats required assist boat accompaniment on tows longer than 650 feet. Most Port Allen Lock delays fell in the 6-9 hour range for the week, although intermittent waits stretched to 14-16 hours.

Algiers Lock restrictions continued for the week. Caps on both vessel lengths and widths limited tows lacking in trip assistance to four standard barges or two 30,000 mt tankers, although larger tows were possible with the use of an assist vessel. The resumption of navigation through the Port Allen Route allowed most Algiers Lock delays to fall below the five-hour mark for the week.

Overnight travel restrictions persisted through Bayou Chene due to construction and diver operations sources said. Movement through the waterway was reportedly unavailable nightly from 7:00 p.m. to 7:00 a.m., triggering 6-12 hour delays. The use of an assist boat was required on all movements through the area.

Intermittent Brazos Lock delays were noted in a wide 13-30 hour range for the week.

Mississippi River:

Dredging operations previously reported at Mile 757 on the upper Mississippi River were heard to conclude during the week. The dredge had been blamed for slow navigation during daylight hours.

Ongoing repairs to the Burlington Railroad Bridge necessitated that shippers provide advance notice of one hour prior to traveling through the area. The requirement was in place daily from 7:30 a.m. to 4:30 p.m., and was expected to run into late June.

A miter gate installation project remained on the books at Lock 2 for July, sources reported. The operation was likely to result in daily 4-12 hour shutdowns for most of the month. Navigation stoppages are also projected in July and August at Lock 25 due to planned repairs to the lower guidewall. Sources anticipated lock availability to be limited from 6:00 a.m. to 6:00 p.m. daily.

Lock 10 delays were noted in the 3-7 hour range, while 4-6 hour waits were posted at Lock 13. Delays ran as high as seven hours at Lock 14, and boats passing Lock 20 were held up to eight hours, according to Corps documents. Lock 22 passages were clocked up to nine hours, while five-hour crossings were noted through Mel Price Lock and Dam.

Illinois River:

Marseilles Lock waits were noted up to six hours for the week. Raised wickets at Peoria Lock and LaGrange Lock produced sporadic wait times up to six hours at both sites.

Ohio River:

The Meldahl Lock primary chamber was shut for miter gate repairs and maintenance through June 29, pushing delays to 13 hours. Tows were reported detouring through the site’s 600-foot auxiliary chamber, with delays anticipated for the remainder of the project. Intermittent shutdowns of the auxiliary chamber were also noted.

The Markland Lock secondary chamber is shut to navigation through an estimated Oct. 29 due to structural cracks in the miter gate, forcing traffic through the site’s primary chamber. Travel through the secondary unit has been unavailable since early 2020.

The Cannelton Lock main chamber was reportedly shut on June 21 for repairs and maintenance. Traffic has passed through the site’s smaller secondary chamber with minimal delays reported on June 23, although some expected a slow ramp-up in wait times through the project’s scheduled Nov. 19 end date.

The primary chamber at Montgomery Lock is slated to close from July 26 through Aug. 24 for repairs, prompting lock operators to route vessels through the secondary chamber. One additional main chamber outage is scheduled at the site in 2021, running from Oct. 18 to Dec. 17.

The Braddock Lock main lock chamber is set to shut from Sept. 13 through Oct. 15, forcing a detour through the auxiliary chamber. Navigation will be unavailable through the Willow Lock main chamber on Oct. 1-31, sources reported.

Falling water levels prompted lock operators to raise wickets at Olmsted Locks and Dam, ending a period of lockless navigation. Intermittent 10-hour delays were noted through Greenup Lock.

On the Tennessee River, Wilson Lock was scheduled to close to daytime navigation from June 28 to July 1 for inspections, blocking movements between 6:00 a.m. and 4:00 p.m. Kentucky Lock delays were quoted in a wide 7-23 hour range for the week.

The Cumberland River’s Cheatham Lock was closed on June 14-24 for bio-acoustic fish fence (BAFF) repairs. The lock was expected to reopen for three days to clear traffic before shutting down twice more, from June 28 to July 1 and again on July 12-22.

Arkansas River:

Eased tow restrictions were noted on the Arkansas River due to normalizing water levels. Maximum towing capacity was previously slashed by 25-50 percent below the region’s typical 12-barge limits.

A dewatering and repair operation remains on the books at David D. Terry Lock for the third quarter, and is expected to fully block navigation between Aug. 27 and Sept. 9. Intermittent navigation outages were projected through the site ahead of the full shutdown, during the Aug. 16-26 period.

Groups Urge Reform of Seasonal Ag CDL Program

News, News Briefs, U.S.

The U.S. Senate Committee on Commerce, Science, and Transportation on June 16 held a mark-up on S. 2016, the Surface Transportation Investment Act. One day earlier, the Agricultural Retailers Association (ARA) and The Fertilizer Institute (TFI) joined 55 other agriculture and industry trade groups in a letter expressing support for the Moran-Thune Amendment to the bill, which would modernize the Farm-Related Restricted Commercial Driver’s License (CDL) program, also known as the Seasonal Ag CDL program.

The amendment, introduced by Sens. Jerry Moran (R-Kan.) and John Thune (R-S.D.), would provide more flexibility by expanding the total number of days allowed to utilize Seasonal Ag CDL drivers from 180 to 270 days to account for longer seasons, which can fluctuate from year to year due to climate change and more diversified crop production. The amendment also ensures that the new 12-month seasons restart each calendar year on Jan. 1 to prevent any overlap of seasons from the previous year.

“The Seasonal Ag CDL program is critical to ensure ag retailers are able to provide the level of service its farmer customers require at peak times in the growing and harvest season,” said Richard Gupton, ARA Senior Vice President of Public Policy and Counsel. “We are encouraged by the language included in today’s mark-up that would allow Farm-Related Restricted CDLs to restart at the beginning of each calendar year, ensuring days from the previous season are not carried over.”

In May, ARA and more than 50 other trade organizations sent letters to the U.S. House and Senate urging additional reforms to the Seasonal Ag CDL program. These include ensuring that Farm-Related Restricted CDL drivers can also operate Class A commercial vehicles “in recognition of the advances and changes made to light duty pickup trucks, ag equipment, and trailers.” In addition, the ag group coalition also urged Congress to eliminate the requirement for in-person seasonal renewal of the Farm-Related Restricted CDL.

“ARA applauds the leadership by Sens. Moran and Thune, and we look forward to working together to ensure the final bill language is supportive of the ag retailer and the industry they support,” Gupton said. “ARA will continue to work on the other recommendations in the Senate and the U.S. House of Representatives related to adding Class A motor vehicles to the program, and allowing online renewals.”

NEW Co-op Opens Port of Blencoe in Iowa, Northernmost Barge Terminal on the Missouri

Featured, News, Western Cornbelt

NEW Cooperative in Fort Dodge, Iowa, has officially opened its new Port of Blencoe terminal on the Missouri River, located midway between Council Bluffs and Sioux City, Iowa. A ribbon cutting ceremony was held at the facility on June 2, with Iowa Gov. Kim Reynolds and Secretary of Agriculture Mike Naig attending as guest speakers.

NEW first announced plans for the $11 million terminal in August last year (GM Aug. 14, 2020). The terminal is situated on 38 acres and is the farthest stop north on the nearly 760-mile span of the Missouri from St. Louis, Mo., to Sioux City, Iowa. NEW described it as the most active port on the northern Missouri and “a gateway to world markets” that will shift high-volume freight from the road to the waterway.

“It’s well established that transporting ag goods, like grain, by barge is significantly more effective than doing so by rail or truck,” said Reynolds. “But when Iowans think of a waterway transport, we’re used to thinking almost exclusively about the Mississippi. Thanks to the Port of Blencoe, however, the Missouri is about to experience a traffic infusion of its own.”

NEW General Manager Dan Dix said the terminal is capable of handling six barges, and has already received upriver shipments of fertilizer and aggregates while pushing out downstream shipments of corn and DDGs. Dix said NEW has “developed a relationship” with fertilizer importer EuroChem, which he said will “enhance our members’ ability to bring fertilizer directly into the country.”

“Today New Cooperative is opening a gateway that will bring the world to western Iowa, adding value to the farming operations of our 6,000 member-owners, and by extension adding economic value to the surrounding states and beyond the Upper Missouri River,” Dix said at the opening ceremony. “We believe this is just the beginning for many other products that are capable of being transloaded through this port.”

The terminal opening marks another step in bringing commercial navigation back to the Missouri after barge activity nearly ended in the early 2000s due to a number of factors, including low river levels and conflicts between upriver and downriver states over water uses (GM June 6, 2005).

An Army Corps of Engineers management plan in 2003 tried to balance those competing interests (GM Aug. 18, 2003), but major barge lines began opting out of Missouri River navigation in 2004 (GM Jan. 19, 2004). State officials said the Corps has agreed to maintain a nine-foot depth in the Missouri near the Port of Blencoe to accommodate barge movement.

“It’s critically important, now more than ever, that we continue to support ongoing navigation on the Missouri River, and that the Army Corps of Engineers does its job to provide a reliable and consistent navigation channel here,” Naig said at the opening ceremony.

Founded in 1973 with the merger of cooperatives in Badger and Vincent, Iowa, NEW Cooperative is an agronomy, grain, energy, and feed cooperative with 575 employees and 39 locations throughout western and northwest Iowa. Members will vote this month on a merger proposal with MaxYield Cooperative in West Bend, Iowa (GM April 30, p. 1). If approved, the merger would become effective on Aug. 1, 2021.

Richardson to Build New Elevator, Crop Inputs Facility in Saskatchewan

Canada, News, News Briefs

Richardson Pioneer Ltd., Winnipeg, Man., announced on June 14 that it is building a new high throughput grain elevator in Carmichael, Sask., located 65 km west of Swift Current. Construction began earlier this month and is expected to be completed by the fall of 2022.

Immediately following completion of the elevator, Richardson said it will proceed with the construction of crop inputs assets at the site, which will include a high-speed fertilizer blender and a 10,000-square foot AWSA certified warehouse. The company said both the blender and warehouse will be fully operational by the fall of 2023.

“Richardson has maintained a significant presence and loyal customer base in the southwestern part of the province and will continue to seek opportunities for improving operational efficiencies,” said Tom Hamilton Senior Vice-President, Agribusiness Operations. “With the addition of the new facility at Carmichael, we look to bridge our historical presence in the area with the realities of meeting our grower customers’ evolving business needs.”

The new grain elevator will include 46,000 mt of storage capacity with a loop track rail design capable of loading 175 high cube rail cars. The facility will also feature high-speed receiving and load out, with a high-capacity grain cleaning system. Richardson said these investments underscore its “ongoing commitment to the Canadian agriculture industry and to providing growers with modern, high-efficiency facilities and services.”

Richardson is a global handler and merchandiser of Canadian-grown grains and oilseeds and a vertically-integrated processor and manufacturer of oats and canola-based products. The company has more than 2,900 employees across Canada, the U.S., and the U.K.

Investor Files Claim Against Gensource, Helm

News, News Briefs, Potash, Saskatchewan

Junior producer Gensource Potash Corp., Saskatoon, on June 17 announced that it has become aware that a statement of claim has been filed against the company, its CEO, and Helm Ag (Project Developers) in the Saskatchewan Court of Queen’s Bench. The Claim was filed by Frank Eberhardt and Carl F. Peters GmbH & Co. (CFP), both of Hamburg, Germany, and 11664735 Canada Ltd. (116), a Canadian company beneficially owned by Frank Eberhardt.

The claim has not yet been served on the Project Developers; however, following the company’s policy of open and transparent communications, Gensource is disclosing the existence, together with some context. It said CFP is a shipping company operating in Hamburg, Germany, operated by Frank Eberhardt, while 116 is a Canadian company beneficially also owned by Eberhardt, which owns a royalty on the company’s Tugaske Potash Project located near Tugaske, Sask.

The claim alleges, among other things, that Gensource and Helm wrongfully excluded Eberhardt from investing in the Tugaske Project and seeks to confer upon the plaintiffs the right to invest in and be part of the Tugaske Project.

Gensource issued a news release on Nov. 26, 2020 (GM Dec. 4, 2020), wherein it announced a decision to replace a financial investor in the special purpose vehicle (SPV) that will own the Tugaske Project. At that time, Gensource and Helm made the joint decision to cease negotiations with Eberhardt when it became clear that the parties were not able to agree on the terms of the key required agreements – namely the offtake agreement for the Tugaske Project and the shareholder agreement that will govern the SPV. Since that time, Helm and Gensource have finalized and executed the offtake agreement (GM May 14, 2021) and have agreed on substantially all the terms of the shareholder agreement for the SPV, pending final equity capital structure of the SPV.

Gensource had previously announced that Helm, through its U.S. subsidiary, Helm Fertilizer Co., Tampa, had inked a ten-year renewable offtake deal for 100 percent, or 250,000 mt/y, of the Tugaske Project’s production (GM Jan. 31, 2020). Helm will market that product to its customers in the U.S. in an open-book manner, providing the direct link Gensource seeks between a potash producing facility in Saskatchewan and a clearly identified market.

Gensource and Helm believe the allegations set out in the claim to be without merit. If the claim is served, the company and Helm will vigorously defend themselves against the claim and are presently considering all available actions they may take to protect their rights and reputations, including seeking damages against the plaintiffs.

Helm, Alltech Partner on Crop Science Products

Featured, News, South Central, Specialty, Tampa

Helm Agro, Tampa, and Alltech Crop Science, a division of Alltech, Nicholasville, Ky., on June 17 announced a partnership to bridge the gap between traditional and biological crop input solutions. The parties said the new relationship applies a systems approach to support sustainable practices and provide growers easy access and product education on full-spectrum, integrated crop solutions.

Helm Agro will market, sell, and distribute the Alltech Crop Science line of products in the U.S. Alltech is a private, family-owned company, with a portfolio of biological solutions including microbial inoculants and products that include micronutrients. Alltech will continue to manufacture its crop science solutions while also focusing on scientific research and the development of new products. The parties said the collaboration brings together product lines from both companies and elevates science and service through expertise, resources, and new, innovative product options.

“This partnership opens new opportunities and supports our customers as they push to reach their crop’s full genetic potential,” said David Schumacher, Helm Agro U.S. President.

“Combined with Alltech’s unrelenting research and commitment to the highest quality standards, we are eager to be able to exclusively offer products you won’t find anywhere else.”

Air Products Pursues C$1.3 B Alberta Hydrogen Complex

Alberta, Canada, Hydrogen, News, News Briefs

Air Products, Lehigh, Penn., announced on June 9 that in conjunction with the Government of Canada and the Province of Alberta, it plans to build a C$1.3 billion landmark new net-zero hydrogen energy complex, with the goal of making Edmonton, Alta., the center of Western Canada’s hydrogen economy and set the stage for Air Products to operate the most competitive and lowest-carbon-intensity hydrogen network in the world. The company expects the production and liquefaction facility to come onstream in 2024. The initial unit is expected to produce 400/mtd of hydrogen, with expansion plans made for additional units.

“As the global leader in hydrogen production, Air Products is focused on providing competitive solutions for our customers,” said Dr. Samir Serhan, Air Products’s Chief Operating Officer. “The combination of multiple facilities, state-of-the-art technologies, our existing 55-kilometer Alberta Heartland Hydrogen pipeline, our project execution expertise, and our record of reliable operations will set the benchmark for competitive hydrogen to support growth in Alberta for many years to come. Air Products has decades of hydrogen fueling experience around the world and we are excited and ready for the developing market in Canada.”

The company said the new project will capture over 95 percent of the CO2 from the feedstock natural gas and store it safely back underground. Hydrogen-fueled electricity will offset the remaining 5 percent of emissions. The company said the clean energy complex will help refining and petrochemical customers served by its hydrogen pipeline reduce their carbon intensity. It said it will also provide emissions-free fuel for the transportation industry, especially heavy-duty vehicles, and generate clean electricity.

Air Products said it is already Canada’s leading hydrogen supplier, and it is also considering further investments in both existing and new hydrogen facilities in Alberta and across Canada. It said the existing Alberta pipeline was designed for growth and the capability to more than triple current volumes.

Air Products Canada currently operates three hydrogen production facilities in Alberta, as well as the 55-kilometer pipeline. It also operates a production facility in Sarnia, Ont., along with a 30-kilometer pipeline.

The new project has been approved by Air Products’ Board of Directors, subject to final completion of the agreements contemplated in signed Memorandums of Understanding between Air Products and Canadian authorities, and with appropriate permit approvals.

In other news, Air Products reported on June 9 that it will collaborate with Baker Hughes, Houston, which provides advances hydrogen compression and gas turbine technology, on future global hydrogen projects.

Mosaic May Phosphate Revenues Up 53 Percent on Lower Volumes

Brazil, Earnings, News, Phosphate, Potash, Tampa

The Mosaic Co., Tampa, reported a 53 percent uptick in May phosphate sales revenue to $327 million from the year-ago $214 million, even though sales volumes were off 9 percent to 553,000 mt from 608,000 mt.

May potash sales revenue were up 40 percent to $246 million from $176 million, with volumes up 10 percent to 891,000 mt from 810,000 mt.

Mosaic Fertilizantes posted a 30 percent increase in sales revenue to $336 million from $259 million, while volumes were off 9 percent, to 790,000 mt from 870,000 mt.

Rusk County Farm Supply Breaks Ground on New Fertilizer Facility in Wisconsin

News, News Briefs

Rusk County Farm Supply, Ladysmith, Wisc., said on June 14 that it is building a new fertilizer plant next to a current storage building in Ladysmith. Construction began this month, and the company expects full-service operation in spring 2022.

The plant will have the capacity to house 2,000 st of fertilizer with eight bays. It will be used to store, blend, and load out bulk fertilizer. The plant will also allow for an increased bagging capacity of six to ten thousand bags to be sold at retail. The company plans to utilize the plant to provide service to the farming community and increase production to meet the needs of the local market.

Serving northwestern Wisconsin since 1987, Rusk County Farm Supply is a family-owned business that provides LP gas and farm supplies.

U.S., E.U. Find Truce in Airline Case

Europe, News, News Briefs, U.S.

It has already taken 17 years, four American presidents, and tariffs on $11.5 billion worth of transatlantic trade for the U.S. and the European Union to reach a ceasefire in their bitter feud over aircraft subsidies. Now the battle pitting the world’s largest airplane makers looks close to reaching a five-year truce providing relief not just to pandemic-hammered Boeing and Airbus, but a host of other export sectors caught up in former President Donald Trump’s trade war with Europe, according to Bloomberg.

Just a few years ago, major fertilizer players argued over whether fertilizer products should be added to the tariffs resulting from the airplane dispute (GM Oct. 4, 2019; Aug. 16, 2019). However, they ultimately did not make the cut.

The deal, announced in Brussels on June 15, is expected to include a five-year E.U. commitment not to reinstate its duties on $4 billion worth of U.S. goods such as tractors, video games, and rum. In return, the U.S. will withdraw for five years its tariffs on $7.5 billion worth of European food and luxury items like Champagne, cognac, and leather goods.

As noted by Bloomberg, while the U.S. and E.U. squabbled over tariffs, China’s airplane sector began to emerge as a potential rival.