U.S. Rep. Mike Bost (R-IL) recently raised concerns with the U.S. Treasury Department over the recent acquisition of a Cahokia, Ill., grain terminal by a Chinese state-run company.
“This transaction fully divests U.S. ownership of an active grain terminal along the Mississippi River to COFCO International Ltd., China’s largest state-run food and agriculture company with a focus on grains, oilseeds, and sugar supply chains,” wrote Rep. Bost and U.S. Rep. Nikki Budzinski (D-IL) in a June 27 letter sent to U.S. Treasury Secretary Janet Yellen.
The Cahokia facility, a grain and byproduct transloading terminal located on the Mississippi River near St. Louis, is a high-speed rail and truck-to-barge loading facility that is served by the Alton & Southern Railroad and is able to receive product from all seven of North America’s Class I railroads, according to their letter.
They demanded that Yellen, in her capacity as chair of the Committee on Foreign Investment in the United States (CFIUS), review the transfer to understand how it will impact the safety and security of the American people, especially in southern Illinois.
Rep. Bost and his colleague also pointed out that COFCO’s acquisition of this facility isn’t its first, noting that in 2016, COFCO acquired another grain terminal when it purchased the remaining shares of Nidera, a Dutch agribusiness focused on grain and seed trade.
“COFCO now owns more than six locations across the U.S. for commercial sales, port terminals, and warehouse storage,” they wrote, adding that it’s “alarming” that a majority of U.S. ports and terminals are owned and operated by foreign entities, especially China.
“COFCO’s acquisition of the Cahokia grain terminal is just the latest in an ongoing divestiture of American waterways and will contribute to that majority,” wrote the members.
“China is attempting to buy up America’s commercial infrastructure and farmland at a breakneck pace. The economic and national security implications are far too great to allow that to happen,” Rep. Bost said in a related statement released last week. “This is an issue that should resonate with Republicans and Democrats alike.”