AWB in talks to get El Zorro to rescue grain crop

Staff WriterMarch 14, 2008, 12:00 amMarch 14, 2008

AWB was negotiating a long-term contract with niche rail operator El Zorro to handle New South Wales and Victorian grain crops, Lloyd’s List DCN was told yesterday (Thursday, March 13). A reconstruction of rail freight services has been underway since Pacific National’s withdrawal from non-performing rail services in southern states. El Zorro provides AWB with two trains that move grain from AWB GrainFlow network and other bulk handling company country grain storages. The trains operate in Victoria and NSW, with one train available for standard gauge track and the other for broad gauge. AWB spokesperson Peter McBride told Lloyd’s List DCN that the company’s partnership with El Zorro had been a successful one and they were now looking into the future given Pacific National’s pulling out. &#8220We are currently in discussions with El Zorro to have a more robust and long-term relationship," Mr McBride said. &#8220If we get a decent wheat crop and a bigger season then we will use El Zorro for our export crop to various parts of Victoria and NSW.&#8221 Mr McBride said that the number of train movements per annum would depend on the size of the crop and AWB’s appetite to export grain under the new wheat marketing legislations. However, El Zorro business manager Geoff Tighe told Lloyd’s List DCN that the new contact under negotiation would see train movements at least double. &#8220We run about 250 trains over the course of the year," Mr Tighe said. "AWB has confidence within us and right now, this very day, we are discussing more services, perhaps 500-700 per annum." Mr Tighe said that El Zorro would need to acquire or lease more rolling stock to cope with the demand of a potential bumper harvest. &#8220We are gearing up and planning how we will run a service with them of that nature but we are confident that we will have all the answers,&#8221 he said. &#8220AWB want us to go across a fair bit of territory so we are planning that with them right now. &#8220Hopefully, they’ll establish a contract with us for next season and then we’ll need to organise suppliers, equipments, drivers We are pretty confident that we’ll have all those things in place.&#8221 Mr Tighe said that the partnership with AWB offered a great opportunity for El Zorro to broaden its footprint in the rail industry. &#8220It provides us with a platform to become the preferred rail carrier for customers seeking reliable and high-quality services,&#8221 he said. &#8220The introduction of competition in the rail industry will lead to operational efficiencies and should be welcomed by all stakeholders.&#8221 Mr Tighe said that in four to six weeks a final proposal would be met.