<p>Grain output from Port Kembla will more than halve this season as a severe shortage of exportable grain from central and southern New South Wales takes its toll.</p> <p>Graincorp expects volumes from its Port Kembla terminal to drop under 1m tonnes, well below the 1.6m tonnes it handled last year.</p> <p>The terminal has capacity for up to 6m tonnes and is considered Graincorp’s flagship terminal.</p> <p>Graincorp managing director Tom Kenne told the ABC yesterday (Wednesday, November 15) that it was the third year since its privatisation that volumes had dropped.</p> <p>The grains handler expects to handle 2m-4m tonnes across its network this year, a drop from 10m tonnes in 2005ቢ.</p> <p>Graincorp recently confirmed that its NSW train operations – including two leased train sets and 18 crew – would be disbanded because of insufficient volumes.</p> <br />