Restructuring of body in charge of planning peak grain handling

11/4/97

The State Government has announced a major restructuring of its peak grain handling and freight system planning body dealing with the movement of grain from the farm gate to port.

Transport Minister Eric Charlton said the change would improve the performance of the grain logistics system, encompassing grain storage, handling, transportation and marketing.

Mr Charlton said the ultimate objective was to maximise net farm gate returns to growers and to do this it was necessary to widen the scope of the original Grain Freight Steering Committee and to look at changes required over the next five to 25 years.

The new body, to be known as the Grains Logistics Committee (GLC), would incorporate a steering committee and a review committee comprised of representatives from the WA Farmers Federation, Pastoralist and Graziers' Association, Co-operative Bulk Handling, Australian Wheat Board, Grain Pool of Western Australia, Westrail and The Road Transport Industry.

The GLC would be chaired by Merredin farmer and businessman Jim Flockart.

"Priorities have changed over the last 15 years with deregulation of freight transport, freeing up of the domestic grains market, marketing strategies of the Australian Wheat Board and changes to the grains industry," Mr Charlton said.

"Added to this has been growing recognition of the interdependence not only between different parts of the transport system, but between all components of the grain logistics chain.

"In order to ensure maximum efficiency and therefore maximum return to growers, it is essential that we have a long-term planning approach including road construction and maintenance program.

"Consultation with local government will be integral to the planning approach."

The new committee's terms of reference include:

·         development of a long-term vision and strategic plan for storage, handling, transport and marketing of all grains;

·         promotion of growers' interests by encouraging secure long term agreements between various industry participants;

·         assessment of current practices and planning for integration of storage, handling and transport;

·         examination of marketing strategies as they impact on storage, handling and transport costs;

·         review of the efficiency of directional flows of grain from country receival points to ports;

·         ensuring that adequate information is available to determine best courses of action;

·         ensuring that initiatives reduce system wide costs rather than simply transferring costs from one organisation to another, with particular emphasis on the effects on the road system; and -

·         having due regard to any impacts outside the grain system.

Mr Charlton said that with State grain production increasing from five million tonnes a few years ago to 10 million tonnes in 1996, greater efficiency and co-ordination would be critical to the future of the Industry.

"The Grains Logistics Committee will be central to achieving this and will generate important spin-offs to the State from improved export earnings", he said.

Media contact: Steve Manchee 481 2133