Jun 27, 2011Simplot secures long-term UAN 32 supply
The California Ammonia Company (CALAMCO) has signed a long-term agreement with the J.R. Simplot Co. for development of additional UAN 32 solution storage at the Port of Stockton.
The additional 30,000 short tons of storage will bring the facility’s storage capacity to 70,000 tons, according to the company.
“This agreement for increased distribution of UAN 32 from the CALAMCO terminal bodes well for California growers through more reliable supply of UAN 32 throughout the state,” said Bob Brown, CEO and president of CALAMCO. “The increased storage and load-out infrastructure positions CALAMCO and Simplot as leading UAN 32 suppliers in California for years to come.”
CALAMCO and Simplot have had a business partnership dating back to the early 1980s, and Simplot has an ownership interest in CALAMCO relating to anhydrous ammonia supply for its California production operations.
In 2001, CALAMCO and Simplot entered into an initial agreement to develop UAN 32-handling capacities at the Port of Stockton facility, and a 40,000-ton storage facility was built to receive and distribute UAN 32 from ocean-going vessels. Increasing demand throughout California for UAN 32 subsequently prompted Simplot to establish relationships with global suppliers to help expand imported volumes.
Garrett Lofto, Simplot AgriBusiness Group president, said he is pleased with the storage-expansion agreement because it represents as a key component of Simplot’s strategy.
“Our continued focus on optimization of our import bases in Stockton, Calif., Portland, Ore., and Point Comfort, Texas, supports our long-standing goal of being a leading crop nutrient supplier in western North America,” he said.
Lee Gardiner, operations manager for CALAMCO, said infrastructure improvements have already been made to accommodate increased demand.
“In April, we completed a third truck load-out station with certified load meters to handle increased truck traffic through the facility,” he said. “Daily shipping records for UAN 32 volume were achieved in the recently completed condensed spring shipping season.”
According to Gardiner, the increased storage and load-out capabilities will allow multiple cargo ships to be off-loaded and contained. In addition, larger-vessel receipt will be accommodated with the expansion.
All improvements are scheduled to be completed in the spring of 2012.
CALAMCO is a California-based cooperative made up of approximately 1,200 grower-members throughout California, as well as fertilizer retailers and their industry partner, the J.R. Simplot Co. In addition to its UAN 32 facility, CALAMCO owns and operates an anhydrous ammonia terminal at the Port of Stockton that imports product from world sources for distribution through fertilizer retail facilities in California.