| | ASX: AWB on track to export bulk grain by rail on east coast | | |
(25/08/2008) |
AWB today announced a new rail freight agreement with El Zorro and the commissioning of 84 new rail wagons to ensure that grain delivered to AWB GrainFlow on the east coast of Australia continues to go on rail as is commercially feasible.
AWB Managing Director Gordon Davis said today that the agreement with El Zorro provides the use of four trains for moving grain from our network storage and handling sites in Victoria and New South Wales and other bulk handling country grain storages.
“In addition, the new contract will also include the use of 84 new rail wagons the company has commissioned which demonstrates our ongoing commitment to ensure that AWB invests in strategic assets that support our ability to provide solutions to growers and endues customers from the east coast of Australia,” Mr Davis said.
“The new rail freight agreement with El Zorro, a specialist rail freight operator, will ensure AWB can continue to provide its customers with an integrated storage, handling and freight service.
El Zorro business manager Geoff Tighe said that the new agreement with AWB builds on our successful partnership and provides another great opportunity for El Zorro to broaden its footprint in the rail industry.
“It provides us with another platform to become the preferred rail carrier for customers seeking reliable and high-quality service,” Mr Tighe said.
“Agreements like this ensure there is strong competition in the rail freight market which will ultimately benefit our customers and grain growers,” he said.
Mr Davis said the new agreement and wagons coupled with our efficient GrainFlow sites will drive a new level of supply chain efficiencies on the east coast.
“The wagons will be delivered early in the New Year and will be built to run on standard gauge rail track. However they can be converted to broad gauge if required,” 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.
“AWB has also established a freight team that will seek to utilise our own rolling stock to haul from suitable sites in addition to purchasing freight capacity from other operators in the market
“AWB commends the Victoria State Government for its recent commitment to invest in gold rail lines and addressing the issue of trail track access for two years which were key recommendations of the Victorian Rail Freight Network Review.
“The company is still in discussions with the Victorian Government regarding the possible upgrade of the strategically important Oaklands rail line, as we believe the upgrading of this rail line to standard gauge will allow us to deploy our rail assets in the most efficient manner across Victoria and New South Wales.”
AWB GrainFlow is a subsidiary company of AWB Services Ltd. GrainFlow operates a network of 22 storage centres along the east coast and into South Australia.
El Zorro is an established niche rail operator based in Williamstown, Victoria. The company has expanded operations in the past three years and now operates freight train services in NSW, Victoria & SA.
Media Inquiries:
Peter McBride, AWB, 03 9209 2174 or 0417 662 451 or
Geoff Tighe, El Zorro, 03 9397 8288
Top of page