WA operator Brookfield Rail says it’s committed to a long-term, sustainable solution with major grain handling customer CBH.
But the sides are yet to come to terms on a new rail deal, a week out from the end of a 90-day negotiation period.
Brookfield said on Thursday it was “disappointed” in CBH, with the grain handler reportedly ready to take the matter to arbitration.
“We are of the view both parties could have negotiated a mutually acceptable agreement within the set 90 day negotiation period,” Brookfield said.
The operator claims to have acted in good faith throughout the process, and said it is “ready and willing to continue negotiations right up until the last hour of this current 90 day period”.
While Brookfield committed to abide by the processes of the Railways (Access) Code 2000 (WA), the operator warned CBH an arbitration period “will likely be a costly and time-consuming exercise for both parties”.
The process would also create further uncertainty for growers, Brookfield suggested.
CBH and Brookfield are at odds on terms for a new access agreement, which would allow CBH’s grain wagons to roll on the rails, which Brookfield holds an exclusive contract to operate.
The operator claims it has presented a price which will deliver “a sustainable grain freight rail network at the standard that CBH needs without further ongoing reliance on government funding”.
But CBH, apparently, does not agree that Brookfield is offering it a fair price, and the sides remain at loggerheads.
“Our solution will deliver the performance, safety, reliability and efficiency that CBH has requested for the grain freight rail network, including the Miling line and Tier 3 lines CBH has sought access to, for the 10 year period, and well beyond,” Brookfield continued.
“In order to deliver on these needs, access fees must increase to fund the required maintenance and capital investment.”
Brookfield says the proposed price is “well within” bookends established by the Economic Regulation Authority.
It says the proposed fees represent “a small proportion of commodity value and a small portion of CBH’s overall supply chain charge to farmers”.
“If CBH chooses to pursue arbitration then we look forward to having the matter resolved as expeditiously as possible,” Brookfield concluded.
“We remain ready to do a deal that meets the needs of CBH, their growers and our communities by ensuring continued reinvestment of funds into one of the state’s most important infrastructure assets.”
