GrainCorp confirmed that it had reached an agreement with the NSW State Government for the ownership and management of the NSW branch line ('broad acre') trains.

The agreement will commence immediately.

The arrangement between the NSW State Government and GrainCorp involves the transfer at no cost of eighteen 48 Class locomotives and 180 wagons to GrainCorp. These trains will be used to consolidate grain from silos on the branch lines into Werris Creek, Parkes, Temora and Junee sub-terminals, for transfer to main line trains to the Newcastle and Port Kembla port terminals.

The branch line trains will also service grain storage sites managed by other grain handlers.

GrainCorp Managing Director Mr. Mark Irwin said, ''The deal provides long term security for the branch line train operations and to growers delivering grain to silos on these lines. GrainCorp will, over time, upgrade the 48 class locomotives, and maintain the wagons, to ensure their continued operation.''

''Day to day operation of the trains will be contracted to Pacific National, the operator of these trains since July 1, 2008, under an agreement with the NSW Government. The branch line trains have the capacity to handle an above average crop from their catchment areas, and in the past six months the branch line trains have moved over 400 kt into GrainCorp sub-terminals,'' Mr Irwin said.