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 AWB gets grain trains rolling 

AWB gets grain trains rolling

06 Apr, 2009 08:09 PM
AWB has moved to address the shortage of grain trains in eastern Australia, with 84 newly-constructed grain wagons just starting operations.

AWB says each wagon can carry up to 68 tonnes of wheat on main lines - when run in rakes of 40 wagons, each train can move 2700 tonnes.

The wagons are being hauled by specialist freight operator El Zorro, under the agreement with AWB it announced last year.

The new wagons increase to four the number of dedicated grain train sets now operating though this arrangement.

AWB managing director Gordon Davis said the investment in rail wagons demonstrated the company's ongoing commitment to invest in strategic assets that would provide solutions to growers and end-user customers on the east coast of Australia.

"These wagons, coupled with our efficient GrainFlow sites, will drive a new level of supply chain efficiencies on the east coast and underpin our ability to move grain to port," Mr Davis said.

"We will link our fast and efficient country storage sites to well-planned and managed rail services, to meet the demands of our export and domestic customers.

"In planning this wagon purchase last year we saw that there was a looming shortage of grain rail capacity and a clear need for new, high-capacity equipment that could make full use of the capabilities of our GrainFlow sites."

The wagons are standard gauge, but can be converted to broad gauge for use in Victoria if the need arises.

"In addition to our own sites, El Zorro will operate these trains from other company's facilities, wherever tonnage is available and rapid, efficient loading and turnaround can be achieved – this latter point is the key to being a competitive freight provider, offering best freight rates to customers and achieving strong fleet utilisation," Mr Davis said.

Meanwhile, AWB will make its first distribution of $195 million FOB (excluding GST) to wheat growers participating in its 2008/09 season wheat pools on Wednesday.

After deduction of supply chain costs, the net payment to growers will be $159 million.

AWB general manager for Australian commodities, Stuart Richardson, said that AWB's sales program was proceeding well, with wheat being placed to both export and domestic customers.

"Our wheat pools are selling well and this first distribution represents around 22pc of estimated pool equity, with some grades a little higher and others lower," Mr Richardson said.

"Those growers who contracted in late September or early October to receive AWB’s $10 a tonne premium for early commitment to the pools will receive that additional benefit in this first distribution.

"The early commitment program was strongly supported by growers last year and helps the sales and pool management process considerably, so the premium recognises that benefit."

Benchmark grade APW wheat currently has an estimated return of $330 a tonne in the AWB’s Western Pool and $335 a tonne in the Eastern Pool (FOB, excl GST).

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Date: Newest first | Oldest first
Isn't competition a wonderful thing.
Posted by Don, 7/04/2009 10:41:40 AM
Yes, Don competition is a truly wonderful thing - wheat growers are competing against each other and are selling their wheat at prices up to $100 per tonne below where they would have been with the single desk. Despite us providing cheaper wheat our major major customers are still turning away because we cannot guarantee reliable delivery. We are shaping up for a major disaster of course.
Posted by Wheat Fields., 7/04/2009 12:01:14 PM
Come on Jock! As the wheat industry is collapsing before us, don't plant a single acre of wheat.
Posted by Long fallow, 9/04/2009 10:22:06 PM
Along with many others in this forum, I predicted that abolition of the Single Desk would be linked to the reduced farm profits and was mocked by several deluded, over-confident, greedy & short sighted people who thought we'd actually be better off. Where are you proponents now fellas?? Fragmentation of the "pool" has seen traders better off, but the vast majority of producers are far worse off. Traders shop around pitting neighbours against each other. Producers are taking the majority of the risk, yet returns are down making producers become price takers. Overseas customers are shopping elsewhere, ships cannot be loaded in a timely manner, due to poorly maintained rail infrastructure which includes, closed branch lines, lines with 25 & 40km/h speed limits and a lack of wagons. Only now do we have a total of 4 grain trains to service the entire East Coast! No wonder our roads are choked with B Doubles and Road Trains! We were told competition would be good for us. Can somebody please tell me how, because so far this hair-brained idealogical experiment, which has been forced upon us, has been a catastrophy in reality.
Posted by CQ, 14/04/2009 4:34:25 PM
Competition a bad thing? I don't think so!
Posted by young farmer, 14/04/2009 6:08:16 PM

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