Bidding underway for WA grain rail management
CBH had received at least 20 expressions of interest for the contract to manage the grain rail network in Western Australia, the agribusiness has revealed.
By Sineva Toevai
The grain handler was currently holding a series of road-show presentations to explain the freight task in the state.
CBH has received interest from parties in Australia including ARG, which has been managing the storage handling and transport.
ARG chief executive Ken Lewsey said the company was “looking forward” to putting
a comprehensive and competitive bid forward for the work, however CBH told Lloyd’s List DCN last week that if ARG sought to continue running the grain rail network, its performance must improve "significantly".
Grain marketing deregulation last year became a key driver behind the recent decision to carry out a tender process in the hope of obtaining a better deal for grain growers, CBH grain operations manager Colin Tutt said.
He said the share of the freight task currently transported by rail in WA was no longer adequate.
“We need to benchmark freight rate in a competitive environment,” Tutt said.
CBH had also been approached by companies abroad including those in Japan, North America, Europe, Korea and South Africa.
CBH wanted the successful bidder to boost the total freight delivery capacity on rail to about 70 per cent from the current 50 per cent.
“Rail is more socially acceptable and is the most efficient way of moving grain up-country to port,” Tutt said.
CBH planned to issue tender documents next month, evaluate the applications between January and February next year, and appoint a grain rail manager by June.
“We are happy with the way it’s progressing but we are not underestimating how difficult the transition process will be,” Tutt said.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
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