Tuesday, October 24, 2017

Fairmont City, IL: Bunge-SCF Marine Transloading Grain Elevator

(Satellite: City, Facility)

I included the city limits satellite image because it struck me how most of the town is away from the river, but there is a sliver of land that connects it to a small stretch of riverfront property. This Bunge-SCF Grain facility is the only business along Fairmont City's riverfront.

I recognize Bunge as the company that owns some of Central Soya's former soybean processing plants. I know of Bunge facilities in Decatur, IN, Indianapolis, IN, and Cario, IL.

I've noticed that modern facilities that load barges don't have near the storage capacity as traditional port elevators that load ships. That is because they concentrate on going directly from the truck or train to a barge. And since there are no locks on the Mississippi downstream from here, they can export grain using very large tows (e.g. 48 barges). (Tows on the Upper Mississippi and the Ohio River max out at 15 barges.) Large tows make US grain competitive with Brazilian grain.
The cost to move one ton of grain from Iowa to China figures in $8.38 for trucking, $25.51 on barges and $27.77 on shipping, and then comparing those costs for a ton from Brazil to China, Bunge pegs Brazils’ trucking expense at $76.94 and shipping at $20. Between the truck, barge and shipping costs, the U.S. cost is $61.66 per ton as opposed to $96.94 by Brazil. [agrinews]
Luckas Irons posted the arginews link.
Dennis DeBruler It is interesting that Bunge gives trucking costs instead of rail costs from Iowa. I assume they truck Iowa grain to St. Louis instead of Dubuque, or other Iowa towns on the Mississippi, because only 15-barge tows can be used on the Upper Mississippi because of the locks. Because there are no locks downstream of Fairmont City, large tows like 48-barges can be used, and they are not delayed by locking procedures.

BUNGE-SCF Grain
Bunge-SCF Grain
Bunge-SCF Grain

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