By DOUG SCHMITZ Iowa Correspondent
PORTAGE, Ind. – The Ports of Indiana (POI) recently selected Louis Dreyfus Co. (LDC) to operate the international grain terminal after the Burns Harbor facility had been closed for the past two years – a decision that is expected to strengthen Indiana’s agricultural economy, and improve export access for farmers across the region, according to officials. “We’re very pleased to partner with LDC to revitalize one of the most important agricultural shipping facilities in the state,” said Jody Peacock, Ports of Indiana CEO. “Combining LDC’s extensive resources with one of the most robust grain export facilities on the Great Lakes provides critical access to global markets for regional farmers. “This is one of only a few places in the Midwest where you can load 1 million bushels of corn onto an ocean vessel for export, while simultaneously unloading an 85-car unit train, and hundreds of semi-trucks from local farmers,” he said. Eric Powell, POI director of communications, told Farm World, “The facility has not been used for any other purpose since closing (in spring 2023). POI issued an RFQ (request for qualifications, a document used to gather information about a potential vendor’s or contractor’s qualifications and experience before inviting them to submit a detailed proposal) in spring 2023, seeking to identify a new operator.” According to POI officials, Cargill had operated the facility since opening in 1979, but the company had announced in spring 2023 it was changing its regional business model and relinquishing the facility to the port. Officials added the terminal can handle ocean vessels transiting the Great Lakes, 1,000-foot lake vessels, year-round barge traffic via the inland river system, and unit trains from nearly all Class I railroads (which are the largest freight railroad systems in the United States, according to RailState, a technology company that provides real-time visibility into the rail network using a network of sensors that capture images of trains as they pass by). Peacock said, “The Burns Harbor facility is one of the premier grain export hubs on the Great Lakes, for several reasons. The 7 million bushels of capacity provide flexibility in terms of storage and pricing, and allow the facility to handle a variety of commodities. “The facility has direct access to the North American rail network and thus allows LDC to source crops for export from greater distances, while still serving nearby agricultural producers who can take advantage of Burns Harbor’s best-in-class highway access, given the proximity to Interstates 94, 90, 80 and 65, plus Indiana and Michigan state highways,” he added. A leading global merchant and processor of agricultural goods, LDC reported net sales of $50.6 billion in 2024, according to officials. Over the years, the Burns Harbor grain terminal has enabled exports of more than 500 million bushels of corn and soybeans between opening in 1979 and closing in 2023. Founded in France in 1851, LDC established operations in the U.S. in 1909, and today, operates the country’s largest, fully integrated soybean crushing and biodiesel plant in Claypool, Ind., said Gordon Russell, LDC’s U.S. head of grains and oilseeds. “LDC is excited to join forces with Ports of Indiana, whose commitment to growing the Midwestern economy is aligned with our own, long-standing growth journey in the state,” he said. “Burns Harbor is well-positioned at the southern shore of Lake Michigan, with access to multiple regional grain markets. The port will be a strategic asset for LDC to expand market access for regional farmers, and serve customers in North America and abroad.” Ryan McCoy, Burns Harbor Port director, said northern Indiana has the largest U.S. port, with access to the Great Lakes, St. Lawrence Seaway, and U.S. Inland River System, also providing multi-modal connections (which integrates different transportation modes like walking, biking, public transit and driving). He said the port’s grain operation includes storage capacity for 7.2 million bushels of grain, 200 rail cars, and 20 barges. “LDC’s extended global network and business portfolio will support export growth, and expand our reach across the agribusiness spectrum,” he said. “This terminal is one of the leading export facilities in the Midwest, with the capacity to load up to 90,000 bushels per hour into an ocean vessel or laker (bulk carrier that operates on the Great Lakes), and unload 30,000 bushels per hour from a unit train. LDC’s investment will sharpen its competitive edge, and help our region expand its multi-modal capabilities and grow global trade.” In a June 26 official joint statement to Farm World, LDC officials said, “Revitalization of an export facility will bring another source of cash commodity pricing to the local farming community. Additionally, bringing the facility back into use will reconnect the local drawing arc to regional rail markets. “The more markets an individual farmer can access, the better positioned that farmer is in the market,” LDC officials added. “The State of Indiana’s agricultural economy gets a stronger direct connection to global markets. The broader U.S. farming base benefits anytime the market can engage in incremental (happening gradually, in a series of small amounts) export demand.” LDC is expected to begin operating the Burns Harbor terminal in early 2026. |