The State Government will chip $8.5 million into a GrainCorp project to upgrade 16 primary grain loading facilities in Victoria and three in southern New South Wales.
The funding upgrade, part of the government’s Agriculture Infrastructure and Jobs Fund (AJIF), will result in an additional 500,000 tonnes of grain per year being transported by rail.
Agriculture Minister Jaala Pulford said this would result in an estimated $2.2 million reduction in road maintenance and accident costs.
“The government is determined to get Victorian grain moving to our ports quicker, make our country roads safer and growing the export potential of our farmers,” Ms Pulford said.
GrainCorp’s will spend $85 million on Project Regeneration, involving the upgrade of train loading infrastructure and sidings in Victoria and NSW.
“Project Regen will complement investments we have made in regional infrastructure to ensure our primary produce can reap transport driven productivity growth, including $220 million for the Murray Basin Rail Project.”
GrainCorp’s regional manager Peter Johnston welcomed the move.
“The Victorian government’s investment complements GrainCorp’s own investment of up to $80 million across key sites on the Victorian rail network,” Mr Johnston said.
“These upgrades will deliver improved rail efficiency for the users of GrainCorp’s open network and reduce costs. The primary beneficiaries of this investment are Victoria’s grain growers, as greater rail efficiency will unlock at least $5 per tonne that goes into their pockets through sharper prices for their grain.
He said investment in government-owned rail infrastructure was critical to GrainCorp’s ability to deliver the benefits of the Project Regeneration initiative.
“We hope the Federal government will deliver similar investment in ARTC infrastructure at Murtoa and Nhill,” Mr Johnston said.
Victoria exported $1.36 billion in grains in 2014-15 and the government said the new initiative would significantly boost the state’s grain export potential in the years ahead.
Currently, rail carries only about 50 per cent of Victoria’s grain to the Port of Geelong and 20 per cent to the Port of Portland.
“This $8.5 million investment by the Government will address lost time and poor train utilisation caused by slow train loading facilities at country sites, and inefficient track layouts at most sites that require excessive shunting,” Ms Pulford said.
“Through the Government’s investment in Project Regeneration sites will see upgrades at Warracknabeal, Beulah, Ouyen, Manangatang, Yarrawonga, Donald, Yelta, Wycheproof, Quambatook, Rainbow, Dunolly, Murrayville, Boort, Piangil, Oaklands, Murtoa and Nhill.
