CHS Inc. said July 14 that it will construct a wholly-owned crop nutrients warehouse/terminal at the company’s Friona, Texas, grain handling location. The crop nutrients expansion at Friona will include a 29,000-ton fertilizer warehouse, two load-out towers for straight or blended orders, and additional rail receiving equipment to handle 110-rail car crop nutrients shipments.
“Adding crop nutrients infrastructure to the company’s Friona operations allows us to maximize current assets, like the existing 7,400-feet loop track, and to further improve our distribution and supply positions,” said Cheryl Schmura, vice president of Crop Nutrients for CHS. “CHS Grain Marketing brings grain to west Texas to serve feedlots and dairies, and now CHS Crop Nutrients will use some of the same assets to position fertilizer imports from its deep-water port in Galveston, Texas, to serve west Texas customers.” She says pairing company operations, logistics, transportation, and personnel provides numerous customer advantages.
“Customers throughout Texas, Oklahoma, New Mexico, Colorado, and parts of southern Kansas will benefit from the additional product sourcing options, improved delivery times, fertilizer blending capabilities, and having quality product on demand,” said Jay Stidham, Crop Nutrients southwest regional sales manager for CHS. He also says there will be storage available for wholesale customers with limited storage at their own facilities. Products handled by the new facility will include urea, phosphate, ammonium sulfate, and potash.
Construction of the crop nutrients facility is expected to begin following the required permitting process. Plans call for the plant to be completed by late Spring 2009.
In addition to this facility, CHS also owns the former Agriliance LLC terminal in Galveston. Agriliance, which still exists as a retailer and has some 26 locations in Texas, is owned equally by CHS and Land O’Lakes Inc. CHS and LOL say they continue to actively work to reposition Agriliance retail locations in the U.S. and Canada.