CHS recently completed modernization of its Galveston, Texas, deep water port, aimed at improving on-time delivery of imported dry fertilizer to farmers in the north, central and northwest parts of the United States.
The improvements, completed in two phases over two years, will reduce wait times for fertilizer, strengthen the supply chain and deliver a more efficient experience for customers. Upgrades replaced outdated conveyor systems, tripling rail car loading speed from 400 to 1,200 tons per hour.
“CHS sources and supplies more than 9 million tons of fertilizer annually to and through the cooperative network,” said John Griffith, executive vice president of ag business and CHS Hedging. “A key to our continued success is investments in our supply chain infrastructure to ensure our owners have access to essential crop nutrients when and where they need them.”
The Galveston port serves as a cornerstone of the CHS fertilizer distribution network, replenishing supplies to CHS ag retail business units and member cooperatives. Widely used urea products, including bulk and granular urea, are imported from sourcing partners as far away as Africa and the Middle East.
The first phase improved the loading system from warehouse to rail. Using new state-of-the-art conveyors, crews can fill an entire train in one day versus three days with the old equipment. This positions CHS to increase dry fertilizer processing beyond the 450,000 tons per year it currently moves.
“This modernization isn’t just about speed, it’s about flexibility and resilience,” said Roger Baker, vice president of trading and risk management, who leads the CHS crop nutrients product line. “Our customers benefit from a more reliable supply chain and greater confidence that we’ll deliver what they need, when they need it.”
The second phase improves urea movement between warehouses, allowing more flexibility in moving and storing cargo while handling multiple product types for efficient rail car loading.
