Click here to add ATMA to your favourites Click here to visit the ATMA Facebook page Click here to follow ATMA on Twitter
Latest News Print version

GrainCorp initiates historic infrastructure investment
Article in World Grain on 5/6/2014

SYDNEY, AUSTRALIA — GrainCorp announced on June 5 the initiation of “Project Regeneration.” The initiative is a three-year strategic investment of A$200 million in GrainCorp’s country grain storage network that is designed to deliver improved supply chain performance.

GrainCorp Executive Chairman Don Taylor said the investment reflects GrainCorp’s commitment to provide improved service to customers as international demand for grain increases. “Project Regeneration represents the single largest capital investment in the country network in GrainCorp’s history. It will deliver a faster and more efficient rail capability for the benefit of growers and grain buyers.”

Project Regeneration involves four work-streams:

1. Reshaping the country network;
2. Localized cluster operations;
3. End-to-end export logistics; and
4. Rail loading improvements.

GrainCorp said Project Regeneration will be funded from cash flow and debt facilities. There is an associated restructuring cost of A$4 million which is expected to be reported as a significant item in GrainCorp’s earnings, principally in FY14.
Changes to GrainCorp’s country network and operating model will largely be in place prior to the harvest of this year’s winter crop.

The capital works associated with improved rail capability and three new sites will be undertaken over the next three years, subject to planning approvals and co-investment by government in rail siding improvements.

Further details on Project Regeneration, including site maps and a list of sites under the new network configuration is available in a dedicated section of GrainCorp’s website:

Through Project Regeneration, GrainCorp is seeking to return up to 1 million tonnes of grain to rail, through reduced train cycle times and streamlined, more reliable operations.
“Rail freight performance has been in decline for some years. Slow loading and short sidings mean grain trains are shunted across multiple sites and cycled slowly, creating both cost and complexity. Furthermore poor track conditions limit wagon weights and track speed, adding to inefficiencies,” Taylor said. “We estimate rail costs in eastern Australia are A$10 per tonne higher than best practice, reducing returns to growers by around A$180 million in an average season. GrainCorp’s investment will significantly improve our network’s interface with rail and help reduce rail costs by A$5 per tonne.

However, the full benefits of our network investment — and the rest of the $10 — can only be unlocked if there is also further investment by track owners in the government-owned rail infrastructure that supports the entire industry.

“Reduced rail costs are good for growers, as competition for grain will see buyers able to post higher bids for grain,” Taylor said.

Project regeneration consists of four strategic subsections.
1. Reshaping the country network

The country network will consolidate to around 180 sites that already receive around 90% of all grain delivered to GrainCorp’s network. A long tail of smaller sites (72 last harvest) receives the residual 10% of grain.
Focusing on the core sites will enable GrainCorp to:
• Invest where it is most needed, in the sites where grower and buyer demand is greatest; and
• Improve service by concentrating equipment, labor and other resources.

Strengthening the core sites will also be supported by the development of three new state-of-the- art country storage sites in Queensland and NSW. The consolidated country network will have storage capacity of 20 million tonnes — enough to hold double GrainCorp’s average intake.

2. Localized cluster operations
The country network will be configured into 34 clusters, each centered around 1 or 2 “Primary” sites, geared to maximizing the amount of grain transported by rail. Primary sites will be export-focused, providing fast cycling point-to-point service for unit trains between country and port.

Several “Major” sites per cluster will service the domestic market by road, and run shorter shuttle rail services in NSW for both export and domestic. Many clusters will also have a number of special purpose “Flex” sites, which will provide additional capacity for specific segregations or customer requirements.

A new, leaner Country Operations structure will be aligned with the 34 clusters, enabling a closer focus on local operations and service. It is anticipated there will be reduction of around 80 full time roles as a result of this restructure. GrainCorp will seek to redeploy affected people within the company where possible. Where this is not possible, assistance to find new employment will be provided. All affected people will receive their full entitlements.

3. End-to-end export logistics
To optimize rail and network efficiencies, export customers will be offered the ability to bundle elevation and transport of export grain under a service to be called ExportDirect. Under ExportDirect, grain stock will be managed to ensure grain is optimally positioned and available for export or domestic outload.

The objectives of ExportDirect are:
• Maximizing rail movements from the sites that have the most efficient rail capability. Primary sites have the capacity to service all export elevations through GrainCorp’s ports, around 5 million tonnes in average year.
• Allowing the benefits of investment in the primary sites to be transmitted throughout the network, by ensuring buyers can buy export or domestic grain at any GrainCorp site — but ensuring grain movements are managed from the most cost effective site

4. Rail loading improvements
GrainCorp will invest in upgrades to rail loading capability at its 68 Primary sites. This will enable the company to provide a streamlined and dedicated rail service from these sites — using faster cycling, point-to-point ‘long unit trains’ (40+ wagons).

Rail capability upgrades at the primary sites will accelerate loading speed (tripling the current average load rate). The upgrades will involve the installation or upgrade at most primary sites of:

• Single load points with over-rail garner bins and weight optimization;
• High speed elevators; and
• Rail pre-positioning bins with fumigation and blending capability.

In addition, around 40 Major sites in NSW will service point-to-point ‘short unit’ shuttle trains (around 20 wagons) to domestic customers and export shuttles to GrainCorp’s four inland subterminals, where grain will be transhipped to long unit trains.

This upgraded capability will optimize rail operations for export and domestic customers — reducing rail cost, increasing rail capacity and improving reliability.

Supporting investment from track owners will be required to upgrade and extend rail sidings at approximately 40 Primary sites, to reduce the need to break and shunt trains. GrainCorp is working with governments in this regard

All News
14 Mar 18 Job Vacancy - Khalid Port
16 Feb 18 Seminar on Petfood & Aquatic feed production challenges
12 Feb 18 The Essential Modern Miller
23 Jan 18 Interflour Group MD and CEO Greg Harvey returns to Australia
8 Jan 18 Mill Manager Vacancy
8 Jan 18 ATMA's Young Achiever Award Applications OPEN!
8 Dec 17 Position Vacant
8 Dec 17 Experienced Mill Supervisor
12 Oct 17 Bread offers an unexpected protein hit
15 Aug 17 2018 Science and Innovation Awards Grants
9 Aug 17 Positions Vacant
24 Jul 17 Aministrators called in for West Coast Milling
24 Jul 17 17 full-time jobs to go in Tamworth
13 Jun 17 Mill dust explosion kills three employees
5 Jun 17 Energy assessment grants available
9 May 17 Position Vacant
19 Apr 17 Position Vacant - Sales & Service Technician
27 Mar 17 Grain Test Equipment Sale
14 Feb 17 Position Vacant - Technical Miller
8 Feb 17 Total Product Moisture Workshop
30 Jan 17 Position Vacant
16 Jan 17 Global Miller’s Symposium - Exchange of knowledge between international wheat millers
13 Jan 17 Position Vacant
10 Jan 17 Vacancy - Production / Machine Operator
15 Sep 16 SFMCA Development Officers Required for SA, NSW, QLD
14 Sep 16 InterGrain undergoes change in ownership
14 Sep 16 David Johnson appointed as Chairman and CEO of Emerald Grain
14 Sep 16 Whitworths acquires Carr's Flour Mills
31 Aug 16 PIX/AMC 2016 Review
31 Aug 16 Premix Account Manager Vacancy
20 Jul 16 Agribusiness Gippsland Conference - 28 July
12 Jul 16 Fundamentals of Flour Milling Course in Sydney
12 Jul 16 Fundamentals of Baking Course in Sydney
1 Jul 16 Vacancy - Stockfeed Production Manager
1 Jul 16 Vacant Position - Qualified Technical Miller
27 Jun 16 Position Vacant - Mill Manager
14 Apr 16 History of Henry Simon
30 Mar 16 Flour manufacturing sector to benefit from new Thunderstorm Detector
22 Oct 15 The Grain Divide - A Documentary Film
22 Oct 15 Production of Salt Bush into pellets
16 Sep 15 "An introduction to the Australian Grains Industry"
7 Sep 15 AMC2016 - Speaker Expression of Interest
14 Aug 15 66th Convention of Milling Technology - Germany
6 Aug 15 Major turnaround in Western Australian wheat yield rankings
30 Jul 15 SQP Grain and Southern AG Grain are changing their names to Emerald Grain
28 Apr 15 Alltech aquires Ridley Inc. in USA
27 Apr 15 Merging of Nederman and MikroPul
17 Apr 15 Buhler - African Milling School officially opens
1 Apr 15 Grains & Legumes Consumption Symposium 30 April 2015
18 Feb 15 Positions Vacant
18 Feb 15 Allied Mills to cut 45 jobs at their Ballarat Mill
25 Nov 14 PerkinElmer acquires Perten Instruments
13 Nov 14 UniGrain acquire West Australian based Morton’s Seed and Grain
3 Oct 14 Australian wheat suffering feed image problem Philippine Association of Flour Millers says
22 Aug 14 GrainCorp announces new MD and CEO
22 Aug 14 Bunge to build a bulk grain export terminal at Geelong
13 Aug 14 65th Convention of Milling Technology from September 09th to 10th, 2014
28 Jul 14 AGSA Conference 2014 - 64TH Australian Cereal Chemistry Conference
15 Jul 14 nabim ENROLEMENTS CLOSE 25TH JULY 2014
11 Jul 14 GrainCorp buys stake in Egyptian flour miller
10 Jul 14 GrainCorp initiates historic infrastructure investment
5 Jul 14 Enrolments for 2014/15 nabim milling training course NOW OPEN
3 Jul 14 BCG Grains Research Expo
28 Jun 14 Australian Grains Industry Conference 28-29 July 2014
24 Jun 14 64th Australian Cereal Science Conference - August 24-27th 2014
8 Jun 14 Peter Cobb - General Manager Laucke Flour Mills awarded the 2014 ATMA Young Achiever Award
11 May 14 7th International Congress "Flour-Bread '13" and the 9th Croatian Congress of Cereal Technologists "Brašno-Kruh '13",
17 Apr 14 Laucke Flour Mills wins grant to boost productivity
4 Mar 14 ABARES Outlook 2014 conference
13 Feb 14 GLNC Media Release: Europe announces comprehensive whole grain definition
7 Feb 14 Sumitomo acquires Emerald Agribusiness Group
22 Jan 14 Nebraska feed plant explosion
20 Sep 13 The powers of the environment and safety regulators seminar
20 Aug 13 News on the RACI Cereal Chemistry Division
15 Aug 13 Situations Vacant - Relief Shift Miller Position
14 Aug 13 The Grains & Legumes Nutrition Council
5 Aug 13 nabim Silver Medal awarded to Dirk Segerius
22 Jul 13 64th Convention of Milling Technology
11 May 13 Grain Tech India 2013
11 May 13 Energy Management in the Food Industry
11 May 13 Grains & Legumes Nutrition Council
24 Feb 13 Machine Dressed Mungbeans Standards
24 Feb 13 Quinoa
2 Jan 13 Wheat Genome Mapped
2 Jan 13 The Role of Wheat Classification
13 Aug 12 Presentations from 2012 Australasian Milling Conference

© Copyright Australian Technical Millers Association 2018. All rights reserved.
Terms & Conditions | Privacy Policy | Refund Policy