Grain elevator operator solicited

• By CHAD CALDER
• Advocate business writer
• Published: Oct 10, 2009 - Page: 6B

• Print
• Email
• Save
• Reprints
• Twitter
• Share

• Del.icio.us
• Digg
• Facebook
• Reddit
• 

The Port of Greater Baton Rouge will solicit proposals from companies interested in operating the grain elevator at the port’s main Port Allen facility.

The grain elevator has been operated by the agriculture giant Cargill for decades, though the port decided a couple of months ago to look into whether anyone else might be interested, port Director Jay Hardman said.

Farmers sell grain to Cargill by bringing it to the elevator. Some have expressed an interest in seeing another player step into the mix. Cargill has two other facilities on the Mississippi River and there’s been a feeling among some farmers that competition might help them get a better price, Hardman said.

The port’s board of commissioners voted Thursday to approve a request for proposals, which will be taken in over the next 90 days, Hardman said. He said the port will look over the qualifications and negotiate from there.

The likely terms are unknown at this point, Hardman said, noting that a longer agreement might be considered for an operator who planned to make a capital investment in the site, for example.

Hardman said Cargill is expected to submit a proposal.

The board also voted to extend Cargill’s existing term, which runs out at the end of October 2010, until March 31, 2011.

This was done because the existing contract expires at the height of the season and there was concern Cargill would be reluctant to book sales if it didn’t know it would have the contract. By extending it five months, Hardman said, any change wouldn’t interfere with business.