GRAINCORP has thrown its support behind the $10 billion Inland Rail scheme, but has added it does not think it will be a major factor for its business.
“As we see it, the Inland Rail scheme will be an additive, rather than transformative influence on our business,” GrainCorp chief executive Mark Palmquist said.
“Our major freight paths are east to west, and obviously the Inland Rail scheme is planned to run north to south.
“We see some use for us from the project, but it is not going to be a game changer.”
The Inland Rail will run from Brisbane to Melbourne, with its proponents saying it will slash the cost of freight for regional farmers.
It would allow grain to easily move across the rail line’s catchment, a potential benefit in years of regional deficits.
“We see that it could be very useful in linking up areas with grain deficits and surpluses and smoothing out regional discounts and premiums, but for us, there are other rail infrastructure works that will be of more benefit,” Mr Palmquist said.
However, he said it would not result in the efficiencies from similar long-distance grain haulage systems in nations such as Canada.
“Canada has an established system with the grain travelling basically one way – we probably won’t achieve those sort of efficiencies with this project.”
On a grains industry level, he said farmers could more easily link up with ongoing demand from areas they had previously been priced out of due to freight costs.
“If you have the right product in Victoria you may be able to take advantage of a market that exists in Queensland or vice versa, it may open up opportunities in that space.”
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
