(The following report appeared on the High Plains Journal website on May 28.)
WINNIPEG — There has been a huge surge in demand to move Canadian canola by rail to Mexico, with both Canadian Pacific Railway (CP) and Canadian National Railway (CN) the main beneficiaries.
The movement of Canadian grain and oilseeds by rail through the US to Mexico has increased substantially during the past five years and the growth potential for additional gains remains promising, officials from both railways said.
“We have seen a surge in demand from Mexican companies to have canola delivered to them from Canada by rail car,” Ed Greenberg, a spokesman with CP said. “The amount of canola moved so far in 2004 has increased significantly since CP began direct service with Mexico in 2000.”
Greenberg estimated that 800 rail cars of canola from Canada to Mexico moved during the period of January 1, to April 30, 2004. In comparison, only the odd spot test rail car of canola was moved in 2003. The rail cars can carry roughly 80 to 100 metric tons of canola each.
“Customers in Mexico are wanting shipments of Canadian canola faster than ocean freight and want the inventory in manageable amounts as opposed to shiploads at one time,” Greenberg said.