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Ross Barnard Sailing into to the sunset

Some time during the last week of June, the final UPPERCASE EMAIL shot off into cyber space and so have marked the final voyage for the incomparable Ross Barnard, legendary agent and Senior Operations manager at Colley West Shipping.

Ross has proudly represented Colley for over 30 years and in that time has seen innumerable changes to the people, terminals and organizations in the Port of Vancouver. Through it all he has been the backbone of our busy operations department.

We valued Ross for his experience, his knowledge of the port and his late night email tirades to computer generated DA Desk Do Not Reply emails. But most of all we will miss him for his decency and being an all around great guy.

We would like to congratulate Ross on his remarkable career and wish him all the best in his future curling and golfing endeavours, not to mention the odd ship boarding on Tuesdays and Wednesdays to help out his old colleagues. Wishing you all the best buddy.

BHP Jansen project costs continue to rise

BHP Group will book a $2.3 billion impairment on its Jansen potash project in Saskatchewan following a review that identified significant cost increases and schedule delays. The mine’s Stage 2 expansion is now expected to cost $6.9 billion, roughly 30% higher than previous estimates, with first production delayed until late 2031. Combined costs for Stages 1 and 2 are now projected to reach $15.3 billion. This represents the third time that BHP has blown past its cost and time estimates for both stages of the project. The cost of Stage 1, according to the company, is now estimated to be $8.4 billion, almost 50% higher than what was approved in 2021. Combined with Stage 2, the mine’s expected cost would reach $15.3 billion.

In its most recent update on June 18, BHP said the construction of Stage 2 is approximately 16% complete. Once ramped up, it is expected to deliver approximately 4.36 million tonnes per annum of production, similar to that of the first stage, which the company said is on track for production in mid-2027. Once fully operational, the mine is expected to account for approximately 10% of total global potash production.

Westshore Terminals in the Port of Vancouver will serve as the eventual maritime export hub for this potash. The facility has already undergone specific upgrades in order to be able handle up to 4.5 million metric tonnes (MMT) of potash per year.

Railways continue to set records for grain movement

Photo courtesy of CN Rail
Canadian National Railway (CNR) moved more than 2.96 million metric tonnes of grain from Western Canada in May 2026, establishing a new monthly record and surpassing the previous high of 2.54 million tonnes set in May 2025. This was after CNR established their new record for April by hauling 3.2 million metric tonnes of grain for that month. This latest record marks eight consecutive months of strong performance by CNR for this crop year, with seven of these months seeing new monthly records.

The record performance was supported by strong export demand and ample grain supplies.

Not to be outdone, Canadian Pacific Kansas City (CPKC), hauled 2.9 million metric tonnes of Canadian grain in April, which beat its previous April tonnage record set in 2020. This came on the heals of CPKC’s new monthly records for itself in January and February. In the first quarter of the year, it hauled 7.2 million metric tonnes of Canadian grain and grain products.

“The volumes of Canadian grain and grain products moving on our railway in multiple weeks exceeded the average supply chain capacity targets outlined in our annual grain service plan,” CPKC said in a news release. “It is critical that all supply chain participants, including customer loading facilities and terminal operators loading grain into vessels at ports, operate at full capacity to sustain this strong momentum.”

Increased supply, robust export demand, and improved operational efficiency have allowed both networks to move unprecedented volumes of Canadian grain.

DP World to upgrade rail infrastructure at Fraser Grain Terminal

Photo courtesy of The Western Producer

DP World is investing CAD$13.3 million to expand the rail infrastructure at its Fraser Surrey terminal in the Port of Vancouver. The project, which is currently underway and is expected to be completed by the end of 2026, is intended to improve the movement of export cargo from the terminal, including grain and canola oil, while reducing congestion, fuel consumption, and rail switching requirements.

The project will extend and reconfigure existing rail infrastructure, increasing total usable track length from approximately 7,200 metres to nearly 13,000 metres. This will allow the terminal to accommodate longer trains, reduce the need to rearrange rail cars within the yard (a process known as switching), and improve the flow of inbound and outbound rail traffic. The upgraded rail yard is expected to support up to 4 million metric tonnes of grain annually through the adjacent Fraser Grain Terminal and about 1 million tonnes of canola oil exports

DP World’s rail infrastructure expansion is also part of the Port Authority Rail Yard (PARY) project to improve export performance and supply chain reliability i. Managed by the Vancouver Fraser Port Authority, the PARY projects are designed to enhance trade connections and railcar storage. Aside from DP World upgrades, these include projects like the North Shore Railyard Expansion to optimize the safe, temporary holding of full grain trains while helping to prevent bottlenecks in the Lower Mainland and addressing high-traffic rail crossings to improve community flow alongside port and railyard operations.

Calls to replace 2nd Narrows rail bridge

Photo: Screencap via Logan Shaw / alltrails.com

More than 20 groups, representing farmers, fertilizer companies and grain shippers, are urging the Canadian government to take action on the CN Rail Bridge that spans the Second Narrows in Burrard Inlet between Vancouver and the North Shore.

A letter addressed to Prime Minister Mark Carney and Canadian Transportation Minister Steve MacKinnon, made clear the Second Narrows Rail Bridge is a critical artery for Canada’s export economy and the potential for an accident or mechanical problem in the future to again shut down the bridge. The organizations behind the letter, sent the second week of May, include the Canadian Federation of Agriculture, the Canadian Canola Growers Association, Sask Wheat, Soy Canada and Fertilizer Canada.

The mechanical steel lift bridge, built in 1969, is the only way for trains coming from inland Canada to cross Burrard Inlet and access the North Shore terminals, which include G3, Richardson, Cargill and Vancouver Wharves for grain, the Canpotex potash facility and Neptune Terminal for coal. Trains make the crossing when the bridge is in the down position, while vessels are able to transit underneath when the bridge is in the up position to reach terminals located to the west of Second Narrows, including Pacific Coast Terminals for K+S Potash and Westridge Marine Oil Terminal.

In February of this year, the bridge had a significant mechanical issue and was locked in the down position for four days, severely restricting rail traffic to the North Shore and blocking all vessel traffic through Second Narrows.  Although the disruption lasted less than a week, it exposed a major infrastructural weakness in the Port of Vancouver; that an outdated 57-year old mechanical rail bridge is relied upon to carry about one-third of the cargo (approximately 43.7 million tonnes in 2024) that moves through the port.

Possible solutions are twinning of the existing bridge or building a suitable, modern replacement. Of course this would require a major capital investment from CN Rail who owns and operates the bridge. Despite the obviously critical importance of the bridge, with this being Canada, don’t expect a solution anytime soon.

Parrish Heimbecker flips newly purchased facilities to Cargill

 

Photo courtesy of Jane Cherry

Cargill is set to expand its grain-handling footprint in Western Canada after entering agreements with Parrish & Heimbecker, Ltd (P&H) to acquire three grain elevators and a 50 per cent stake in a West Coast port facility.

The deals involve most of the assets that P&H just acquired in its $150 million purchase of GrainsConnect, announced in late 2025.

According to a June 22, 2026 announcement from Cargill, the company has signed agreements with P&H that will see Cargill take ownership of elevators at Vegreville and Huxley, Alberta, and Reford, Saskatchewan, as well as a 50 per cent stake in the Fraser Grain Terminal located in Surrey, British Columbia.

Back in December, P&H announced it was acquiring GrainsConnect, which was a 50/50 joint venture between Australia’s GrainCorp and Japanese agricultural co-op Zen-Noh, for $150 million.

GrainsConnect owned four high-throughput, loop-track elevators at Maymont and Reford, Sask., as well as Huxley and Vegreville, Alta., which it built between 2017 and 2019. The company also co-owned the Fraser Grain Terminal, which opened in 2022, with P&H in a 50/50 partnership.

In a consent agreement reached on May 22, 2026, the federal Competition Bureau said P&H must sell the GrainsConnect elevator at Reford to maintain competition for grain farmers in the surrounding area.

If the competition regulator approves the new sales to Cargill, it appears P&H only retain the Maymont elevator from the GrainsConnect deal.

As for rail service, the Huxley, Vegreville, and Reford locations are all located on CN Rail’s mainline.

“Western Canada is one of the world’s most important grain-producing regions, and we’re continuing to invest in the infrastructure needed to help move grain efficiently from farms to customers around the world,” says Jeff Vassart, president of Cargill Canada, in a statement. “These facilities strengthen our ability to serve farmers and customers while supporting the long-term growth of Canadian agriculture.”

Cargill says existing contracts would be honoured through the proposed transition.

Source “Real Agriculture”

Orcas cruise the harbour

Photo courtesy of Vancouver Police Department Marine Unit

A pod of transient killer whales was recently spotted hanging out in Burrard Inlet over several days, drawing widespread attention and delight from residents and tourists alike. The whales were seen moving throughout Vancouver’s inner harbour, between the Lions Gate Bridge and the Ironworkers Memorial Second Narrows Crossing after earlier sightings near Indian Arm. Observers noted the unusual behaviour as the whales lingered in the busy and congested inlet while hunting seals and sea lions.

After several days the pod eventually departed the harbour when Transport Canada tried to detain them for not having an up to date fishing license. Fortunately the pod was able to wait till the close of office hours and then left without incident.

Diesel prices running mad

Photo courtesy of Kennedy Miller Entertainment / Warner Bros

A sharp increase in diesel prices, up about 60% since the start of the year, is beginning to drive higher grain transportation costs, with impacts expected across trucking, rail, and ocean shipping.

While Canada’s regulated rail system may delay the full effect, these higher fuel costs will eventually be reflected with increased rail rates. The country’s rail shipping rates for grain are guided and regulated by the maximum revenue entitlement.

At the end of every crop year, the railways are allowed to adjust their actual revenues by applying deductions such as capital investments, depreciation on rail cars and fuel costs to help ensure their revenues stay below their maximum entitlement.

Ocean freight rates are also set to spike as bunker prices have more than doubled since the start of the year. The Global 20 Ports Average rate for bunker fuel was US$957.50 per tonne as of April 2, slightly more than double the Jan. 1 price of $464. It is estimated that fuel accounts for almost half of the total costs of shipping products by ocean vessel.

According to Quorum Corporation, these cost increases will likely emerge in the coming months, though stronger grain prices may partially offset the impact, with consumers (surprise, surprise) ultimately expected to absorb much of the increase.

Canadian farmers plan for more canola, less wheat in 2026

Picture courtesy of Vincent Van Goh

Canadian farmers expect to plant more canola and less wheat in 2026 compared to the previous year, according to the first planting intentions report from Statistics Canada released March 5. Barley, soybeans and corn area are also expected to increase, while oats, lentils and dry peas are forecast to decrease.

The survey was conducted from mid-December to mid-January, marking the earliest time planting intentions data was collected by the agency. Subsequent surveys will provide data on actual planted area, with revisions possible for the next two years.

Wheat – Total Canadian wheat area is expected to be down by 1.1 per cent from 2025, at 26.7 million acres. Much of the decline was tied to a 6.7 per cent drop in winter wheat seeded in the fall, with spring wheat relatively steady on the year.

Canola – Canola area is forecast to increase by 1.0 per cent on the year at 21.8 million acres. The survey was conducted before China announced it was lifting tariffs on Canadian canola, causing prices to rise, and analysts generally expect actual canola area will top 22 million acres.

Soybeans – Soybean planting intentions came in at 5.9 million acres, which would be up by 2.9 per cent from 2025. Ontario remains the top growing area for soybeans, with acreage expected to increase by 0.2 per cent to 2.9 million acres.

Meanwhile, Manitoba farmers intend to plant 12.9 per cent more soybeans in 2026, with area forecast at 1.9 million acres.

Barley and oats – Barley area is expected to increase by 5.0 per cent on the year, at 6.4 million acres. That was in line with trade expectations.

Oats area is forecast at 2.9 million acres, which would be down by 3.1 per cent from 2025.

Corn – Canadian farmers expect to plant 3.8 million acres of corn for grain in 2026, up 1.7 per cent from one year earlier. Ontario is forecast to see the largest increase in corn area, at 5.4 per cent. If realized, that would see Ontario farmers plant a record 2.3 million acres of corn.

Pulses – Most pulse crops are forecast to see lower planted area in 2026, with lentil planting intentions down 5.5 per cent at 4.1 million acres; peas down 12.3 per cent at 3.1 million acres; and edible beans down 30.7 per cent at 295,000 acres.

Of the major Canadian pulse crops, only chickpeas are expected to see an increase on the year with planted area estimated at 575,000 acres, which would be up by 6.3 per cent.

Courtesy: The Western Producer

Dredging operation planned for Second Narrows

Photo courtesy of Wikimedia

The Vancouver Fraser Port Authority (VFPA) has begun an environmental review process for a potential dredging project at Second Narrows that would specifically boost the potential for increased oil shipments out of the Trans Mountain Westridge Marine Terminal.

Many of the tankers calling on Westridge Terminal are Aframax-class oil tankers that are up to 255 metres long and can carry up to 755,000 barrels of oil at full capacity. The current width and depth of the Second Narrows channel create limitations on the volume of crude that can be carried in the tankers calling at Westridge Terminals. Trans Mountain claims on its website that Afrimax-class tankers are generally able load to only about 80% of capacity to clear the current draft restrictions.

The Trans Mountain pipeline, which supplies Westridge Terminal, currently has a capacity of 890,000 barrels of oil per day. The company is currently working on projects to increase its capacity by up to another 500,000 barrels per day.

In September of 2025, the port reported that shipments of mostly diluted bitumen hit 11.6 million tonnes in the first half of 2025, a 365% increase from the same period in 2024, when the expanded pipeline first started operations.

While the main goal of the dredging will be to enable tankers to pass through Second Narrows at 100% load capacity on deeper drafts, the dredging will also improve the transit windows for vessels loading potash and sulphur at Pacific Coast Terminals which, like Westridge, is located east of Second Narrows. Given the port’s prioritization to facilitate tanker traffic through the harbour, the extra transit windows created by the dredging will also be key for these bulkers.

On paper, the proposed project looks relatively small. Dredging along the edges of the channel would disturb an estimated 25,000 cubic metres of material (sand, gravel sandstone and boulders) in a total area of less than two hectares, about the size of about three soccer fields, according to the project’s web page. The port estimates the total amount will represent less than one per cent of the amount it typically dredges up in its annual maintenance program.

The project, which has the support of the federal government, does face opposition from local First Nation and environmental groups. The main concerns raised are with seabed disturbance and marine ecosystem impacts, specifically the risk from disturbing toxic pollutants that have concentrated in sediments on the sea floor and blocking sunlight that would interrupt the growth of phytoplanktons key to the marine food web.

The review is expected to carry on through 2026. If approved, work would be expected to commence in late 2026 – early 2027 and take up to a year to complete.