DEFIANCE, Ohio — Consolidated Grain and Barge (CGB) Enterprises, headquartered in Mandeville, La., plans to build a grain rail terminal in Defiance, Ohio.

To be served by CSX Transportation, the new terminal will be designed to store more than two million bushels of grain and load 90 railcars on a loop track. In addition, the facility will feature shuttle-loading capabilities.

“The Defiance area provides CGB with a good production area, a great transportation system and outstanding support from the community, all of which gives us the confidence to make this investment,” said Steve Burbrink, director of business development for CGB.

CGB will employ nearly 15 individuals at the grain shipment facility during peak grain handling periods. Construction is slated to begin in spring and conclude in June 2013.

“The decision by CGB to invest in Defiance represents a major success for our community,” said Jerry Hayes, executive director of Defiance County Economic Development. “This project will connect the city of Defiance to regional, national and global markets.”

The city of Defiance Rail Development Commission and Ohio Department of Development are providing funds for the project. In addition, the company received an enterprise zone tax incentive from Defiance County commissioners. Support has also come from Defiance Mayor Bob Armstrong.

But not everyone is pleased with the announcement of the new grain terminal. There are 15 grain elevators within 25 miles of the proposed sight and some see it as stiff competition.

A representative from Jewell Grain Co. (the closest existing elevator to the proposed site just 4.6 miles away) appeared to be unhappy about the CGB facility and refused comment until groundbreaking has taken place. Two other elevator companies also declined comment.

But a representative from Farmers Elevator Assoc. (just seven miles from the site) called the CGB plans “stiff competition,” adding, “farmers will likely get higher bids for their grain than what the elevators will pay.”

CGB owns and operates more than 70 grain facilities across the Midwest. In addition, the company has sizable operations in logistics and transportation, fertilizer, crop insurance, ag finance, soybean processing, producer risk management and related businesses.

Defiance is located in the northwestern corner of Ohio. The terminal will be located at 11859 Krouse Road, south of County Road 424 in the Enterprise Industrial Park.