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Australian premier agribusiness, ABB Grain, and rail-freight transportation operator, Genesee & Wyoming Australia, are close to signing a five-year broad gauge agreement to annually move up to 300,000 tonnes of Victorian grain.
The two companies have signed a memorandum of understanding ahead of finalising the agreement which would start on November 1.
ABB’s executive manager – group operations, John Warda, said the new agreement would provide “transportation certainty” for Victorian grain growers, rail capacity for ABB’s exports from Victoria and service the company’s investments in the Port of Melbourne grain terminal and Australian Bulk Alliance grain receivals sites.
“The agreement provides for one grain train of up to 40 wagons and capacity to move up to 300,000 tonnes of grain for export, complementing rail freight capacity provided by other grain companies in Victoria,” Mr Warda said.
“The broad gauge grain train will also be available for use by other customers.
“Separately, ABB’s agreement with GWA for moving grain by rail in South Australia provides the company with a capability, if need be, to shift grain on standard gauge lines from the Wimmera region into the Port of Melbourne or Port Adelaide.
Mr Warda said rail was crucial for the cost-effective movement of grain in Victoria and ABB Grain was very pleased to have been able to negotiate the long-term agreement with GWA.
Genesee & Wyoming Australia’s Managing Director Bert Easthope said: “The planned agreement with ABB for some of GWA’s rail assets to be deployed in Victoria to meet a demand was a further extension of the relationship and arrangements that ABB and GWA will have in place for SA. This will create flexibility for both organisations in meeting the transport task of the grain industry.”
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