| ||AWB and FreightCorp sign rail freight agreement|| ||
AWB Limited and FreightCorp today announced a joint rail freight agreement designed to deliver increased investment in NSW rail and grain handling infrastructure and significant long term cost savings to grain growers.
The agreement will see FreightCorp inject over $100 million into NSW rail and grain facilities with the construction of high volume Grain Consolidation Facilities (GCFs) at Werris Creek and Stockinbingal. FreightCorp will also purchase six new sets of grain wagons and AWB Limited one set to significantly enhance and improve grain hauling services in the State.
FreightCorp Managing Director Lucio Di Bartolomeo said these investments in long life fixed assets ensures ongoing future sustainability in the handling and transport of grain in NSW.
“The 5-year agreement represents a watershed in rail freight arrangements in NSW and marks the development of a long-term relationship between the two companies in providing grain transport and handling services,” said Mr Di Bartolomeo
The construction of these two inland-based GCFs will result in high volume efficient consolidation and transfer of grain destined for export ports in Newcastle and Port Kembla. These purpose built facilities will reduce the rolling stock required in NSW and significantly improve the effectiveness and efficiency of the system.
These facilities will be funded and constructed by FreightCorp and operated by AWB Limited.
Commenting on the signing of the agreement, AWB Chief Executive, Mr Andrew Lindberg said it will inject much needed investment in to NSW grain freight services and create new efficiencies and improvements to the system.
“Growers deserve a grain storage, handling and transport system which works to deliver them a more competitive and cost effective service. These changes will make the industry sustainable in the longer term and ensure that the savings come back to growers in the form of more efficient grain storage, handling and transport.” Mr Lindberg said.