March 4, 2011

 

Australia's grain exports in chaos

 

 

Damages to Victoria's rail network caused by flood resulted in a shortage of road transport; along with a late harvest, Australia's grain exports were badly affected. 

 

Port terminal operators, Australian Bulk Alliance, and GrainCorp, said all three factors had led to a backlog in grain shipments from Victoria and other states.

 

Simon McNair, general manager of ABA, operator of the Melbourne grain terminal, said flood damage to a number of broad-gauge rail lines in Victoria had pushed grain transportation to road carriers.

 

McNair said there was a lot of grain going into ABA's Melbourne terminal and GrainCorp's port terminal at Geelong by road transport.

 

"But going by road is not as fast as by rail, so vessels are queued up," he said. "The demand for road transport has also forced up freight costs."

 

GrainCorp corporate affairs manager, David Ginns, agreed, saying road trucks were scarce.

 

He said the problem would deteriorate when rice was harvested in southern NSW and the harvest of cotton and summer crops in northern NSW and Queensland about to take trucks out of Victoria and NSW.

 

The problem is further aggravated by the delayed harvest caused by heavy rain from December to February.

 

Ginns said higher moisture in grain deliveries to storages meant bulk handlers were putting more effort into insect control.

 

He said fumigation with phosphine took three weeks before grain was ready for transport. With a four-to-six-week delay in harvesting, exports were being delayed by seven to 10 weeks.

 

McNair said shipping slots at ABA's Melbourne terminal were booked until the end of July.