Viterra Inc , Canada's largest grain handler, said on Thursday that it has reached an agreement to lease and operate Montreal Port Authority's grain terminal, Reuters reports.
The terminal operates year-round and has storage capacity of 262,000 tonnes, with direct access to rail networks owned by Canadian National and Canadian Pacific railways.
The terminal fills a void for Viterra. It controls about 45 percent of Western Canada's grain handling capacity, more than either privately held Richardson International or Cargill Inc , but its port terminals are on Canada's West Coast and at Thunder Bay, Ontario, at the western end of the Great Lakes.
The Montreal terminal will allow it to operate from a major Eastern Canadian port.
"Its ideal location enhances our ability to expand Viterra's (crop) origination and merchandising capabilities in both Canada and the U.S.," said Bob Miller, Viterra's senior vice-president of North American grain.
Viterra will assume full operation of the terminal on July 1, 2011. Terms of the deal were not announced.
Viterra shares on the Toronto Stock Exchange rose 1 percent after the news before easing to a gain of 0.5 percent, or 5 Canadian cents, to C$11.15 on Thursday morning.
Viterra also owns nearly all of South Australia's crop storage and handling capacity.
The terminal operates year-round and has storage capacity of 262,000 tonnes, with direct access to rail networks owned by Canadian National and Canadian Pacific railways.
The terminal fills a void for Viterra. It controls about 45 percent of Western Canada's grain handling capacity, more than either privately held Richardson International or Cargill Inc , but its port terminals are on Canada's West Coast and at Thunder Bay, Ontario, at the western end of the Great Lakes.
The Montreal terminal will allow it to operate from a major Eastern Canadian port.
"Its ideal location enhances our ability to expand Viterra's (crop) origination and merchandising capabilities in both Canada and the U.S.," said Bob Miller, Viterra's senior vice-president of North American grain.
Viterra will assume full operation of the terminal on July 1, 2011. Terms of the deal were not announced.
Viterra shares on the Toronto Stock Exchange rose 1 percent after the news before easing to a gain of 0.5 percent, or 5 Canadian cents, to C$11.15 on Thursday morning.
Viterra also owns nearly all of South Australia's crop storage and handling capacity.