The Canadian grip on Australian grain infrastructure is set to strengthen, as AGTI buys Balco’s storage and handling assets for $10.5 million
By <a href="mailto:
rmckay@acpmagazines.com.au“>Rob McKay| September 6, 2010
The Canadian grip on Australian grain infrastructure is set to strengthen, with Alliance Grain Traders Incorporated (AGTI) to buy Balco’s storage and handling assets next to the Bowmans Inland Container Terminal for $10.5 million.
Bowmans is operated by Patrick Portlink SA, the joint venture that Balco, the former Balaklava Corporation, formed with Patrick is 2003.
“This further investment in Australia bolsters our lentil, chickpea and faba bean platforms, allowing us to establish a significant foothold in South Australia,” AGTI Executive Chairman Huseyin Arslan says.
“The port of Adelaide and the location of the Balco site at a major inland container terminal at Bowmans, provide a significant logistical advantage for us.
“We believe it will allow us to effectively execute our plan of building a sustainable value-added pulses business in Australia.”
While much of the Canadian tilt has been focused on South Australia, the biggest target, and one supported by its board, has been Agrium’s offer for GrainCorp.
GrainCorp operates seven of the eight eastern state bulk export grain elevators and handles up to 80 percent of bulk grain exports from the region.
The GrainCorp offer comes 12 months after Viterra’s takeover of ABB and its string of South Australian port terminals and inland terminals that stretch into Victoria.