GrainCorp is applauding the Victorian Government’s $8.5 million plans to upgrade state-owned rail sidings at major grain silos.
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State regional manager Peter Johnston said the investment would deliver significant benefits across an important regional industry.
The Victorian Government’s investment complements GrainCorp’s own spending schedule worth up to $80 million at key sites on the Victorian rail network.
“We are pleased to be able to partner with the government and congratulate them on their proactive approach,” Mr Johnston said.
“These upgrades will deliver improved rail efficiency for the users of GrainCorp’s open network and reduce costs.”
Primary beneficiaries of this spending were grain growers, as greater rail efficiency unlocked at least $5 a tonne in extra crop payments through sharper prices for their grain.
“The many customers using our network will also benefit from significantly improved rail efficiency, allowing them to get Victoria’s crop to its destination as quickly and efficiently as possible,” Mr Johnston said.
“Local communities will see a major reduction in heavy vehicle movements as around half a million tonnes of grain each year is returned to rail.” This meant less wear and tear on local roads and improved safety.
Investment in the government-owned rail infrastructure was critical to GrainCorp’s ability to deliver the benefits from its Project Regeneration initiative which focused on making key silo sites in strategic locations more efficient.
