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Tuesday, August 19, 2014

Bunge plans east Australia port, offers more competition for GrainCorp, (NYSE: BG)

A subsidiary of U.S. firm Bunge Limited plans to build a port terminal on Australia's east coast, boosting competition for the country's largest agribusiness, GrainCorp Ltd. Bunge Australia said on Wednesday that the terminal would be built in Geelong, Victoria, with capacity to export 45,000 tonnes of grain a year.GrainCorp has seen a wave of competition emerge across the Australian east coast, a stronghold for the bulk grain handler.Bunge has applied for planning permission to build its second port terminal, which would have three storage silos. Bunge opened its first Australian port in Western Australia earlier this year."We decided on Geelong due to the capabilities of its port, complementary infrastructure and good transport access for grain supply," Chris Aucote, Bunge general manager, said in a statement.

Shares of BG traded higher by 1.78% or $1.45/share to $82.89. In the past year, the shares have traded as low as $73.12 and as high as $84.18. On average, 902036 shares of BG exchange hands on a given day and today's volume is recorded at 1216411.