Western Australia has received the second largest grain crop on record, with more than 900,000 tonnes of material moved by CBH Group on rail in December 2018 alone.
This record-breaking crop has led to CBH group’s rail fleet bypassing its 50 million tonne transport milestone since the co-operative purchased its own locomotives and wagons in 2012.
CBH purchased 22 locomotives and 574 wagons at a cost of $175 million to improve its grain rail freight operations in WA. Since this initial investment, the group has added a further three locomotives.
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CBH Acting General Manager Operations, Ben Raisbeck, said CBH purchased the rail fleet to increase the efficiency of the supply chain, and move more grain, faster across the network to our four port terminals.
“Our decision to invest in rail has benefited our growers, however we must continue to manage freight costs and limit rail access price rises which directly impact the international competitiveness of Western Australia’s grain industry,” Raisbeck said.
“We’re proud to have reached the 50 million tonne milestone, and thank our employees and partners, including rail operator Watco Companies, for contributing to the success of our supply chain during this time.”
The Australian subsidiary of American company Watco Companies has a 10-year contract to operate CBH’s rail grain freight services.