Rail Transport | Road Transport
Land transport is a major feature of the grain distribution system. Typically, it involves two components. The first is from farm to the country receival point and the second from the receival point to the export terminals or domestic customers. There are some exceptions where, for example, some deliveries are made direct from farm to domestic customers, grain merchants or to receival facilities at terminal ports. The transport stage from farm to country receival point has traditionally been undertaken by growers, using their own trucks. Contract haulage may also be used in this task. Distance travelled depends on the distribution of the local receival points, with the national average being about 17 kilometres. This varies between the states, starting from an average of about 8 kilometres in Queensland.
Rail Transport
Transport from country receival point to terminal port is the more substantial component of the land transport task, and for the most part, this is done by rail. Historically, the expansion of the wheat industry has been tied to extension of the rail system, paving the way for subsequent social and economic growth. This has impacted directly on the development of storage and handling infrastructure. It should also be recognised that to some extent rail enjoys a natural competitive advantage over road for grain transport because of the bulk characteristics of the commodity and the location of production areas.
The average length of haul from receival point to export terminal is about 350 kilometres, but this varies considerably between the states. South Australia has a comparatively long coastline which is relatively close to the main grain production areas and has more terminals than other states. As a consequence, average haulage distances are lower (around 160 kilometres) and a greater proportion of growers deliver direct to the terminals. In New South Wales, on the other hand, the average rail haulage distance from receival point to terminal is about 500 kilometres.
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Road Transport
Road transport is becoming increasingly competitive for the movement of grain. Deregulation and microeconomic reform is providing greater opportunity for participation and road transport technology continues to develop. In South Australia and Western Australia, road transport captures a much larger share. In South Australia, grain terminal ports are much closer to the grain producing areas than in other states, making direct road transport from the farm to port cheaper and more efficient. In Western Australia many country grain receival sites are not serviced by the rail network, making road transport the only alternative.
The principal function of the transport sector is to provide for timely and reliable movement of grain from receival points to export terminals and domestic customers, ensuring commitments to customers are met. The integrity of the grain by type and grade must be maintained throughout the process and of course, grain hygiene and quality must be maintained.
Grain transport logistics are sometimes co-ordinated on behalf of the marketing companies by BHCs, since they usually have responsibility for handling the grain at both ends of the transport chain. The transport companies, therefore, maintain close operational liaison with the BHCs who in turn must be constantly aware of marketing companies' requirements.
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