Ceres Global Ag, St. Louis Park, MN, and Consolidated Grain and Barge Co., New Orleans, LA, announce an agreement to jointly own and operate a new company called Savage Riverport LLC.
Previously owned and operated by Riverland Ag (a fully-owned and integrated subsidiary of Ceres), the Savage, MN, terminal will now be owned and operated as a joint venture between the two companies and will buy, store and ship wheat, corn, soybeans, oats, rye and other products loaded on the TCWR, BNSF, UP and CP railroads, as well as receive truck grain.
The facility has 9.2 million bushels of grain storage with high speed truck and rail receiving capacity, as well as rail and barge shipping capabilities.
"Partnering with CGB at the Savage location is a strategic move for Ceres," said Robert Day, president and CEO of Ceres. "The formation of this company maintains critical access to river, rail and truck logistics in the upper Mississippi River region while also generating capital that we will deploy for growth in other areas of our business. By maximizing total volume from all the products each of our companies provide our customers with, we will significantly lower cost per unit handled."
Steve Burbink, director of Business Development for CGB added, "CGB is looking forward to continued expansion into new markets with producers, cooperatives and commercial grain elevators. We've successfully worked with Riverland for the past five years and that relationship has built a solid foundation for creating this business."
