General News
22 January, 2025
Rail freight operator says its bumped up capacity to meet transport demand
Growers welcome increased capacity on Victorian grain lines.
One of Australia's biggest grain hauliers, Pacific National, says it's increased train capacity on some Victorian rail lines by 20 per cent, allowing it to carry 3000 tonnes of products each trip.
Pacific National has added 10 wagons to some train sets, boosting the number from 40 to 50.
It's believed the additional wagons have been added to services on the Mildura/Yelta corridor following the extension of grain sidings and crossing loops.
Pacific National group executive coal and bulk Patrick O'Donnell said the company had reconfigured its locomotives to deliver more for customers and ensure it could move more grain from paddock to port.
Pacific National had also increased the number of wagons on its northern NSW services by an additional 30 per cent, from 48 to 62, allowing it to run trains that spanned almost a kilometre.
Growers in the north-west said they had seen an increase in grain and oilseed trains on several lines.
Daniel Keam, Wallup, said he had recently noticed more trains at the Warracknabeal silos on the Hopetoun line.
"We were quite surprised because there were trains there for a few days in a row," he said.
"The canola was moving quite quickly, whether or not that is seasonal or it may be GrainCorp, which may have gone fairly hard in its marketing early in the season, needs to get it to port as quickly as possible," Mr Keam said.
A lot of grain was being stored on farms, and exporters Riordans and Broadbents "were a lot more competitive when the season stopped."
Victorian Farmers Federation president (VFF) Brett Hosking, Quambatook, said the Manangatang line ran directly past his property.
"The grain trains themselves are still around the 40 wagon mark; there are container trains that go up to Ultima, which are often longer, up to about 50 wagons," he said.
"It (more grain on rail) would be a good thing.
"I know rail is a more efficient way of moving freight, and we also know it is a safer way to move that bulk freight, so we don't have that interaction with your everyday 'mum and dad' motorist.
"We are reducing the risk of accidents, not eliminating it completely, but certainly reducing it."
He said the more rail was used, the more money invested in it meant greater efficiencies.
"The rail is there to be used; it will ensure our roads last longer," he said.
In its final harvest report for the season, GrainCorp reported receiving 2.4 million tonnes of grain into its Victorian up-country sites.
In December, the Australian Bureau of Agricultural and Resource Economics and Sciences (Australian Bureau of Agricultural and Resource Economics and Sciences) projected the state's grain production would decline by 25-30pc.
Pacific National group executive coal and bulk Patrick O'Donnell said bulk commodities like grain were best hauled by trains as no other mode came close to rail's carrying capacity.
"In fact, moving 800,000 tonnes of grain on rail is the equivalent of removing more than 20,000 B-double trucks off the road network," he said.
Last year, the Australasian Railway Association (ARA) submission on the state government's Victorian Freight Plan update recommended that 30 per cent of contestable freight be moved by rail.
Mr O'Donnell said high supply chain costs had a significant and direct impact on Australian grain growers and threatened the industry's global competitiveness.
Already facing comparatively higher production costs, reducing supply chain costs presented a key opportunity to ensure Australian grain remains globally competitive and deliver savings for Australian growers.
In a recent report, GrainGrowers wanted to see greater scalable capacity in the supply chain.
GrainGrowers Trade and Supply Chain policy manager Annabel Mactier said.
At the same time, it was great to see more grain being moved on rail in Victoria, Australia's rail network faced many challenges that must be addressed.
"A patchwork of track gauges, varied axle loads, ageing infrastructure, more frequent and intense weather patterns, and capacity constraints now hamper the network's operations, slowing transportation times and increasing costs to growers," she said.
"In the lead-up to the federal election, GrainGrowers is calling for targeted funding to upgrade and standardise critical grain rail freight corridors to improve resilience, drive efficiency, and increase the share of grain moved on rail.
"Over the longer term, increased grain freight transportation on rail can improve efficiency and deliver a viable way of substantially reducing carbon emissions."
According to the ARA, rail freight produced 16 times less carbon pollution than road freight per tonne-kilometre travelled.