Oslo (2008-02-20): Yara invests in a new storage facility for dry bulk fertilizer at the Port of Stockton in California. The state-of-the-art facility allows Yara to better serve the US agricultural sector and creates a platform for growth in a prime market.
"This is the first major investment in an import dry bulk facility by any company in Western US for 30 years, and a sign of Yara's future commitment to both the region and the USA," says Thorleif Enger, President and CEO of Yara International ASA.
Construction will begin as soon as all permits are in place, and completion is scheduled for the first quarter of 2009. The project will entail a total investment of USD 21 million.
"The US is an important growth market and we intend to build and maintain a modern and efficient operational platform that allows us to grow moving forward", says Head of Downstream, Edward Cavazuti.
One-stop-shop with global sourcing capabilities
The flagship terminal will provide a full assortment to customers, handling seven different types of key products simultaneously including NPKs, Calcium Nitrate and Urea. The new fertilizer warehouse will have a storage capacity of 80,000 tons, and be built close to an existing Yara facility for liquid fertilizer at the Port of Stockton. The deep-water terminal has a draft of 34 feet, allowing for shipment of 30,000 ton cargoes.
"There are a few ports on the West Coast that can efficiently handle dry bulk fertilizer. Stockton is ideal as a centrally located, inland port in one of the most important agricultural areas in North America. Our terminal, with its truck and rail capabilities will help connect not only California, but the Western States to the rest of the world", says Pete Valesares, President of Yara North America.
Proximity to one of the world's largest agricultural markets
The Stockton Gateway is an inland water terminal located in the heart of the Central Valley of California, core market for Yara's specialty plant nutrients. The Golden State, which on its own is the fifth largest agriculture in the world, grows approximately 250 crops and supplies close to 75% of all US cash crops.
The increased sourcing capabilities will not only help serve the state of California, they will also improve Yara's reach into the surrounding agricultural areas in Oregon, Washington, Idaho and southern Arizona.
"The improved level of supply of products will mean the facility will be able to load a truck in less than ten minutes - and this means efficient and improved delivery service to our customers" says Lou Astbury, Yara North America Western Vice President.
With sea, rail and truck access, the Stockton Gateway Terminal will generate projected cost savings of USD 2 million per year, thanks to lower ocean freight and bagging costs, plus improved operational efficiency.