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Grain Infrastructure Group Review – Summary Points. Presentation to Fuelling Food in WA. John Georgiades Executive Officer Grain Infrastructure Group. John Georgiades, Executive Officer GIG 02 October 2008. Grain Infrastructure Group Review – Background. HISTORICAL PERSPECTIVE.

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Grain infrastructure group review summary points

Grain Infrastructure Group Review – Summary Points

Presentation to Fuelling Food in WA.

John Georgiades Executive Officer Grain Infrastructure Group

John Georgiades, Executive Officer GIG 02 October 2008


Grain infrastructure group review background

Grain Infrastructure Group Review – Background

HISTORICAL PERSPECTIVE

  • In 1997, the Minister for Transport established the Grain Logistics Committee.

  • In 2004 the Grain Infrastructure Group (GIG) was established

  • – a DPI initiative.

  • WA Strategic Grains Infrastructure Study (WASGIS) was initiated by GIG.

  • ARG and CBH initiated a ‘bottom-up’ supply chain evaluation of their

  • Networks known as Grain Network Review (GNR).

  • 2005 to present

  • DPI verification using GIG working party to model the supply chain

  • and estimate costs based on actuals from Bin to Port


Grain infrastructure group review summary points

WA Grain Industry Facts

  • Infrastructure

  • 197 receival points, 4 export grain ports

  • 3,350 km NG rail, 500 km SG rail

  • Established heavy haulage road network

  • Task

  • Current 10mt average, 15mt peak crop

  • 60% average task by rail

  • 80% WA grain bound for export

  • Half the nation’s export grain from WA

  • Impact

  • 25,000 jobs (directly & indirectly)

  • $5.5b pa contribution to economy

  • Importance to viability of regional communities


Grain infrastructure group review summary points

Rail Freight Grain Network


Grain infrastructure group review summary points

WA Grain Flows to Port

LEGEND

rail site to port

road to rail

road site to port

road farm to port


Grain transport rail operation

GRAIN TRANSPORT RAIL OPERATION

  • In a “normal” grain year ARG will in general terms operate the following train sets to the 4 major rail ports in WA:

  • Albany narrow gauge 2 trains each of 50 wagons, each loaded to 54 net tonnes = 2,700 net tonnes each

  • Geraldton narrow gauge 1 trains each of 50 wagons, each loaded to 44 net tonnes = 2,200 net tonnes each

  • Kwinana narrow gauge 4 trains each of 50 wagons, each loaded to 44 net tonnes = 2,200 net tonnes each

  • Kwinana standard gauge 3 trains each of 58 wagons, each loaded to 70 net tonnes = 4,060 net tonnes each

  • each train usually averages one round trip per 24 hour day from port to country loading point and return

  • notional capacity all up is 28,000 tonnes per day to the ports.(560 truck trips)


Grain transport rail operation1

GRAIN TRANSPORT RAIL OPERATION

To put this in perspective, in the case of the Kwinana zone, ARG will deliver some 4.5 million tonnes in year at up to 21,000 tonnes or more per day. These trains travel down the Avon Valley, skirt around the Perth Metro area through Midland, Forrestfield, Canning Vale, Cockburn and down to Kwinana. All this while the majority of the people of Perth are totally unaware that it is even happening.  I’m sure that that awareness will increase dramatically were this task to divert to the roads.


Grain transport demand

GRAIN TRANSPORT DEMAND


Grain infrastructure group review summary points

Drought has

suppressed this


Grain infrastructure group review outcomes

Grain Infrastructure Group Review – Outcomes

GIG REVIEW

EXHIBIT 13: SUPPLY CHAIN RESOURCE COST PER TONNE


Grain infrastructure group review outcomes1

Grain Infrastructure Group Review – Outcomes

GIG REVIEW

2006 $’s. Since that time there have been rate adjustments and fuel cost escalations which impact on both rail and road.


Grain infrastructure group review outcomes2

EXHIBIT 14: LIST OF PROJECTS GRAIN RESCUE PACKAGE

NATURE OF

NUMBER OF

ORGANISATION

FUNCTION

PROJECTS

PROJECTS

TOTAL VALUE in 2007$'s million

Lines open

Lines Closed

WESTNET RAIL

136.7

RAILWAY TRACK

RESLEEPERING

Up to 18

226.7

MAIN ROADS

UPGRADING AND

DEPARTMENT

STATE ROADS

MAINTENANCE

10

63.2

151.4

COOPERATIVE BULK

INTERMODAL

RAPID RAIL

HANDLING

TRANSFER

LOADING

18

106.8

COOPERATIVE BULK

COMMUNITY

ROAD AND RAIL

HANDLING

SAFETY

ACCESS

15

40.8

437.5

435.7

MAIN ROADS

STATE ROADS NON

UPGRADING AND

DEPARTMENT

RAIL AREAS

MAINTENANCE

25

50

50

pro rated from PB

LOCAL

ROADS FARM GATE

UPGRADING AND

report

GOVERNMENT ROADS

TO RECIEVAL BIN

MAINTENANCE

175

350

350

837.5

835.7

TOTAL VALUE OF INFRASTRUCTURE PROJECTS

Grain Infrastructure Group Review – Outcomes

GIG REVIEW


Grain infrastructure group review conclusions

Grain Infrastructure Group Review – Conclusions

GIG REVIEW CONCLUSIONS

  • 1 Returns insufficient to warrant reinvestment (based on 2006 conditions).2 Volume is being diverted from rail to road (variety of reasons) undermining network viability.3 Deregulation of Grain Marketing can potentially fragment the supply chain and lead to closure of the grain rail network.4 Infrastructure Investment is required: Resleepering $200m, State roads $50m, Loading $150m.5 If no investment then Requirement for roads could increase by $24m p.a. Logistic Resources will be diverted from grain to other industries – threatening industry viability. Significant environmental and community impacts


Grain infrastructure group review summary points

Supply ChainCoordination


Supply chain coordination

Supply Chain Coordination


Supply chain coordination1

Supply Chain Coordination


Modal impacts

Modal Impacts

FUEL USAGE

Rail uses an average of some 1.5 to 2 litres of

diesel per net tonne. 

The road equivalent is closer to 9 litres per net tonne.


Emission impacts garnaut

Emission ImpactsGarnaut

Garnaut’s Climate Change report


Emission impacts garnaut1

Emission ImpactsGarnaut

Garnaut’s Climate Change report


Emission impacts garnaut2

Emission ImpactsGarnaut

Garnaut’s Climate Change report

Key points on Transport

Transport systems in Australia will change dramatically this century,

independently of climate change mitigation.

High oil prices and population growth will change technologies, urban forms and roles of different modes of transport.

An emissions trading scheme will guide this transformation to lower emissions transport options.

Higher oil prices and a rising emissions price will change vehicle

technologies and fuels.

Governments have a major role to play in lowering the economic costs of adjustment to higher oil prices, an emissions price and population growth, through planning for more compact urban forms and rail and public transport.


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