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Grain Traffic Post 2000

Grain Traffic Under Privatisation

Vicgrain announced on 27-8-2000 that it would be working with Freight Australia to provide a new on-farm pick-up service along the Meringur line. This was a service previously developed by V/Line in 1988.

Following widespread rains that gave excellent growing conditions for grain crops, Vicgrain announced on 12-9-2000 that it was spending more than $1 million constructing additional bunker storages at eight locations in the State. Crops in the Yelta district were being monitored with the prospect of additional bunker storages to be built near the receival facility. It had been decided earlier that additional bunker storages would be constructed at Carwarp, Murrayville, Ouyen and Woomelang.

The 2001/2001 harvest was a record yield with reported receivals totalling 4.9 million tonnes which saw many sites particularly in northern Victoria and the Mallee smash daily receival records at peak periods. GrainCorp recorded that on third of the harvest was received by the 13 largest facilities, including Yelta (104,910 tonnes) and Ouyen (102,760 tonnes).

The Minister for Ports (Ms. C. Broad) announced on 23-2-2001 that an agreement had been made with GrainCorp to spend $3.6 million to connect standard gauge rail access to the bulk grain wharf at the Port of Geelong. It would be completed in by February 2002.

The Minister also announced that a committee had been set up to develop an integrated Victorian freight and logistics strategy by the end of the year. The government was supporting private sector investment in inland ports to streamline the sea freight transport chain and relieve port congestion and pressure on limited port land.

Four inland ports were being developed at Altona North, West Wodonga, Morwell and Merbein. Commercial investors had earmarked Mangalore, Somerton, Mooroopna, Echuca and Warrnambool as possible inland port developments.

The Minister also indicated that the government would have the final report of an independent review of rail standardisation options with access to the ports of Geelong and Portland as a priority.

In November 2001, the president of the Victorian Farmers Federation Grains Group, Mr. R. Hards of Yarrara, indicated that mallee wheat farmers could be contributing to the fate of many of their local silos as they sought to achieve the best price for the grain in a deregulated market. Farmers were using valuable time during their grain harvest to search each day for the best payment and delivery deals. The establishment of "super" sites by AWB Limited, Ausbulk, Graincorp, Pivot Grain, Brooks and others created spirited competition. Mr. Hards pointed out that the trend for less grain receival facilities could be exacerbated by smaller silos having to subsidise the keener competition at the big sites. This would speed closures as less grain delivered means a higher cost per tonne.

In June 2002, the Managing Director of Freight Australia, Mr. M. Van Onselen, released a document titled "Moving Ahead - A Plan for Better Rail Freight in Victoria". Freight Australia proposed that the government help pay for four key projects:

The initiatives were aimed at upgrading track and terminals to take heavier train loads, to improve signalling, standardise the track, and to upgrade level crossing systems and bridges.

Freight Australia's plan included a strategy to achieve the following objectives for the Mildura line:

Freight Australia claimed the benefits of larger, heavier capacity wagons would benefit the grains industry by improving the economics of shifting grain.

The strategy was presented to the government and it now remained for the Minister for Transport to decide on the future approach to upgrading and standardisation of the Mildura line. More details on the "Moving Ahead" strategy can be found in the section on Privatised Freight Traffic.

Grain Network Upgrade strategy from Freight Australia "Moving Ahead - A Plan for Better Rail Freight in Victoria" document. Source: Freight Australia

The 2002 grain harvest was affected by a severe drought. At the Yelta receival point, only 20% to 30% of the grain received in 2001 was delivered.


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