Glencore grain business Viterra will continue to move grain by rail in South Australia after extending its rail agreement with Genesee & Wyoming Australia on the Eyre Peninsula up to March 2019.
Viterra’s logistics and commercial relations manager Jonathan Wilson said the current three year agreement was due to expire in 2018 but the two companies had worked together on a 12-month extension.
“This allows more time for government and industry stakeholders to examine the long term future of the rail network,” Wilson said.
Currently, two rail lines service 15 storage and handling sites to transfer grain to Port Lincoln for shipping.
“Our focus is on offering Eyre Peninsula growers the most efficient and cost effective supply chain in moving grain from upcountry to port,” Wilson said.
“We are the only customer using this rail network. We work very closely with G&WA and will continue to support discussions between stakeholders to determine the best logistics solution for the future.”
More than 725,000 tonnes of grain has been moved on the Eyre Peninsula rail lines since 1 October, 2016, Viterra said.