| ||Grain Industry Leaders Welcome Interim Authorisation For Logistics Joint Venture|| ||
AWB Limited (AWB) and GrainCorp Limited (GrainCorp) have welcomed the decision by the Australian Competition and Consumer Commission (ACCC) to grant an interim authorisation to set up a joint venture logistics company, to be called EGL Pty Ltd.
The JV will provide export logistics services to AWB and GrainCorp aimed at making a more efficient grain supply chain on the east coast.
The ACCC granted the interim authorisation on Thursday 7th October 2004. The interim authorisation means the JV company will commence immediately.
AWB Managing Director Andrew Lindberg and GrainCorp Managing Director Tom Keene said the decision will allow the new JV Company to better handle the projected above average receival tonnages for the coming harvest.
Mr Lindberg said AWB was focused on improving efficiencies in the supply chain, and ultimately reducing costs for the AWB National Pool. He said the JV would have minimal financial impact on AWB Limited.
“We are pleased to be working with the ACCC and thank them for their decision to grant the interim authorisation,” said Mr Lindberg.
According to Mr Keene, the decision by the ACCC introduces coordination into the grains industry with GrainCorp, AWB and the rail operators working together to improve coordination of the export grain supply chain on the east coast.
“The result of this JV will be a more efficient system that will benefit both producers and buyers of grain and provide clearer commercial incentives for investment in the grain supply chain,” said Mr Keene.