Australia's Port Kembla Welcomes New Grain Terminal

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Researched by Industrial Info Resources Australia (Perth, Australia)--Export capacity at Port Kembla in New South Wales is set to increase with a new, 1.3 million-metric-ton-per-year grain terminal, to be built by Quattro Grain, a joint venture between Noble Resources Australia (Melbourne), Emerald Grain (Melbourne), Cargill Australia (Melbourne) and Qube Logistics (Sydney).

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Quattro Grain has appointed Kerman Contracting (Perth) as the main contractor for the project, and hopes to complete the AU$65 million (US$61 million) facility in time for the late 2015 harvest.

Upon its completion, grain export capacity on the east coast will total 20 million to 25 million metric tons. But with the average Australian harvest of about 18 million metric tons, with an approximate export of 8 million metric tons, competition for grain is set to heat up between rival companies.

"This is a significant strategic project, which we believe will alter the dynamics of the tightly controlled grain-handling market," said Maurice James, managing director of Qube. "The joint venture looks forward to supporting grain producers by providing high levels of service and modern infrastructure to customers seeking to export grain from Port Kembla."

Concurrently with the development of the Quattro Grain terminal, New South Wales ports have committed to upgrade Berth 103, where the new export terminal is to be built, to accommodate Panamax vessels. The project will be completed on a tight timetable to meet the demands of the new terminal.

Across the port, Australia's largest grain handler, GrainCorp (Sydney), has announced Project Regeneration, a major efficiency program that is aimed at maximizing capacity and minimizing freight costs. The $200 million project begins with the justification of operational sites across the network, reducing operating inefficiencies and reducing the number of operational sites for the next harvest to 180, from 252 during the last harvest.

By focusing on the core 180 sites, which already receive 90% of all grain, GrainCorp can concentrate investments in those parts of the network that require upgrades. Included in the project are three new sites, with state-of-the-art grain-handling and train-loading capabilities. However, much of the increased efficiencies will rely on investment in government-owned rail lines across the country.

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