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CHS forms joint venture to build BNSF-served fertilizer warehouse in North Dakota


CHS Inc. and Fessenden Cooperative Association recently formed a joint venture to construct and operate a fertilizer warehouse in Hamberg, N.D.

To be served by BNSF Railway Co., the facility will feature 28,000 tons of nitrogen, potassium, sulfate, phosphorus and micronutrients storage capacity and be capable of blending products. Plant construction is slated to start in summer and conclude in fall 2015.

A global agribusiness, CHS will use the facility to service its nearby wholesale customers. The warehouse primarily will serve farmer-owners of Fessenden Cooperative's retail business.

"Our new, larger and more efficient facility will give area growers better overall fertilizer service and options," said Fessenden Cooperative General Manager Mark Hovland in a press release.

The fertilizer warehouse is the second major partnership between the coop and CHS. Last year, the companies built a grain shuttle loading facility on a BNSF line in Hamberg.

CHS also recently announced it signed an agreement with Sinav Ltd. of London to acquire 100 percent of the company's stock, including ownership of an Illinois River Energy L.L.C. ethanol plant in Rochelle, Ill. The transaction is expected to close in June.

"Illinois River Energy is a top-tier ethanol plant, well-situated in a strategic growth area that will add value to our farmer-owners through expanded grain origination, additional renewable fuels gallons and distillers grain by-products," said Mark Palmquist, CHS' executive vice president and chief operating officer-ag business.

Contact Progressive Railroading editorial staff.

More News from 5/9/2014