Construction on the malt house, which is subject to development approvals, will start at the end of 2008 and will process 100,000 tonnes of barley per annum.

Malt produced at the plant will service Carlton and United Breweries and the expanding export market.

GrainCorp will store and handle barley and also provide "logistics services" for BBM.

"The Pinkenba terminal will undergo a $10 million upgrade to provide dedicated services to BBM," GrainCorp's general manager of ports and new business, Nigel Hart, said.