ABB Grain busy on logistics; plans up to 3 million tonnes exports in 2009

South Australian-based ABB Grain Ltd. reported Thursday (February 12) that export shipping of new season grain is happening faster and earlier in the year than previously.

South Australia is likely to export up to 3 million tonnes of grain, mostly wheat and most of it in the first half of the year, the company reported. Year-earlier figures weren't immediately available.

Grain exports in December were four times greater than the year-earlier month. In February, nearly 500,000 tonnes either has been shipped or is scheduled for shipment from South Australia's five export terminals, all operated by ABB Grain, up 66 percent from February last year, it said.

"March has all the makings of being equally busy, as marketers seek to ship grain as early as possible and, especially, before Northern Hemisphere harvests influence demand and returns for Australian grain" in the calendar second half, it said in a statement.

AWB Ltd. operated a national monopoly over the export of wheat from Australia for more than 60 years, but this arrangement ended June 30, 2008, with 22 companies now accredited as bulk wheat exporters, including ABB Grain. Barley exports from South Australia were similarly deregulated in 2007.

"In the liberalized wheat and barley market, the equation of multiple buyers, multiple owners of grain and multiple exporters has provided a complexity to the shipping program not previously experienced," said ABB Grain.

The challenge for the company is how to marshal many marketers' inventory from around the state to the port of shipment. The company introduced its Export Select program this year to simplify its logistics task and to ensure all specified grades of grain are in the export position at the right time.

ABB Grain's shipping stem, which is published daily on the company's Web site www.abb.com.au, has 23 vessels scheduled to load cargoes of grain through the end of February. A further 12 are already scheduled for March. Most cargoes are organized on a cost, insurance and freight basis by ABB Grain, said a company spokesman.