With the ongoing battle for ethanol producers to secure shipping containers, POET (the largest ethanol producer in the U.S.) announced the acquisition of one of the largest rail-to-container terminals in the Southeast.
Sioux Falls, South Dakota-based POET LLC, has acquired Georgia-based Savannah Marine Terminal, according to a news release from POET. The Port of Savannah is one of the highest-volume container ports in the U.S. The acquisition will include all equipment and real estate to operate the grain transload facility, POET said. Details about the price of the deal were not made public.
DTN Basis Analyst Mary Kennedy said the move makes sense given all the difficulties ethanol producers have faced. "Good move on their part given how messy logistics have been and still are, especially the container side," said Kennedy. "They have a high-end DDG product, and they need to be sure to keep it flowing to their foreign customers. It's been an ongoing struggle for container shippers, and in doing that, POET appears to be taking matters into their own hands to at least solve their logistic issues."
According to Savannah Marine Terminal Inc.'s website, the terminal transfers grain and other bulk commodities from CSX and Norfolk Southern railcars or hopper trucks to container trucks which are driven to the port for export. Boasting a 40-acre multiplex, there is capability of moving hundreds of thousands of tons of bulk material, grain, coal, oil, forest products and heavy-lift commodities per month. There are three warehouses with about 80,000 square feet of storage as well as a dry-storage facility.
With an annual production of about 3 billion gallons at 34 locations across the Corn Belt, POET produces 14 billion pounds of distillers grains and 975 million pounds of corn oil per year. When it comes to container shipping, POET currently is the 36th-largest shipper, exporting to more than 20 countries around the world.
Editor’s Take:
Having control of your own destiny, especially in very challenging times for the shipping industry, makes a great deal of sense. POET’s move to acquire the Savanah Marine Terminal will allow them the flexibility to continue meeting customer demand around the globe. That is good for POET, good for their customers and good for farmers. This type of strategic thinking has been rare in recent times and is refreshing. We are very interested in anything that would benefit our nation’s farmers/ranchers, and this qualifies! It helps them sell their production and puts more money in their pocket which affords them the opportunity to purchase trucks from CAD members!
