AWB Limited (AWB) today announced the formation of its new grain logistics company AWB GrainFlow Pty Ltd (GrainFlow), which as a wholly owned subsidiary will operate AWB’s growing supply chain and logistical business services.
AWB Managing Director Andrew Lindberg said GrainFlow would establish a new, defined and separate identity for supply chain operations such as AWB Grain Centres, recently purchased rail wagons and AWB’s port investments.
"In the past few years AWB has developed a number of infrastructure initiatives within the grain supply chain which have introduced competition and instigated reduced costs for growers," Mr Lindberg said.
"Those initiatives will now continue under the identity of GrainFlow, as a separate business entity. Its role will be to maintain and introduce improved industry practices, increase competition, and deliver a commercial return on investment.
"Establishing this new company will also mean a greater level of independence in the supply chain management functions AWB undertakes for the AWB National Pool," Mr Lindberg said.
Mr Lindberg said a separate Board has been established for GrainFlow to support the separate identity of the new company.
"For growers and other customers of AWB’s grain centres will largely be business as usual, except that the business will now be conducted with the GrainFlow entity," Mr Lindberg said.
"Having a defined and recognisable company that is separate from the rest of the AWB organisation should minimise confusion between the functions of different parts of the AWB organisation," Mr Lindberg said.
Mr Lindberg said GrainFlow would encompass a number of business ventures, including AWB Grain Centres (and the coordination of services such as on-farm pick-up), company owned rail stock, the AWB investment in the Melbourne Port Terminal and any future supply chain investments.
AWB Storage and Handling Manager Grant McDougall has been appointed the General Manager of GrainFlow.