Western Australian grains co-op CBH Group has announced a 12-month extension to the interim access deal it has with rail network operator Arc Infrastructure.
Unable to agree to terms on a long-term access agreement, CBH and Arc Infrastructure – formerly known as Brookfield Rail – have operated on interim rail access deals since 2015.
The new interim deal extension covers CBH access from January 1, to December 31, 2018. It is the fourth extension of the interim access agreement.
The interim deal allows CBH wagons to use Arc’s Tier 1 and Tier 2 rail lines as well as the Miling line.
CBH wants to secure a long-term deal that opens as many of WA’s 509 kilometres of Tier 3 rail lines as possible. As network operator, Arc Infrastructure has questioned the financial viability of opening many of these lines, after it shut them down roughly four years ago.
The sides are also, understandably, negotiating over rates on all tiers of rail line.
CBH general manager of operations David Capper said the interim deal extension meant business as usual for growers in the upcoming harvest.
“The agreement ensures there are no disruptions to growers and their harvest programs,” Capper said on December 22.