CBH Group to spend $4 billion on the network over a decade

Head of Operations Mick Daw said last year’s record harvest reinforced the need for CBH to continue its increased investments in the network, particularly in offloading projects critical to generating price value for producers in the first half of the year.

“As the size of the crop continues to grow, we need to invest more to improve our ability to receive crop efficiently, maintain current assets, and build infrastructure to increase the number of tonnes to system customer capacity,” Mr. Daw said.

“Over the past five years, CBH has invested more than $1.2 billion in the network, and we are pleased to commit to investing $4 billion over the next 10 years.

“Increasing the capacity of our network is essential to maximizing the value of producers’ grain in international markets and creating sustainable value for current and future WA producers.”

Network investment plans for 2023 include: site extensions; storage renovations; temporary storage constructions; lodging; throughput improvements; upgrades to receiving equipment and rapid rail unloading facilities.

In addition, CBH is in the process of procuring new railroad rolling stock and freeing up supply chain capacity in the Kwinana areas by advancing work on the narrow gauge/standard gauge transfer facility of ‘Avon.

A summary of major projects by area completed in FY22 and beginning in 2023 can be viewed in Table 1.

CBH has spent an average of $240 million per year over the past five years, while today’s announcement shows an annual spend of $350-450 million.

In the past two years alone, CBH has added an additional 5Mt of permanent and temporary storage to the network.

CBH Group Project Manager Sam Glidon said the temporary storage played an important role in securing last year’s record harvest and will be an important part of the grid infrastructure mix in the future.

“If we look at the amount of temporary storage added and planned for the network over the past two years, CBH will have increased its entire network storage capacity by more than 20% in just 12 months,” said Gliddon. .

“This is a phenomenal and much needed effort in all areas.

“Our strategy includes converting many of these temporary storages to permanent specifications in the future.”

Rail investment will be an important feature of network investment in the future, in line with the CBH strategy, to increase the logistics performance of the network.

Commercial negotiations are currently underway for the acquisition of standard gauge locomotives.

CBH will continue to advance the rapid rail unloading and siding projects that received a contribution from the $200 million funding from the state and federal governments under the Chain Improvement Program. agricultural supply (ASCI).

Construction of at least two of these rapid rail offloading facilities will begin in early 2023 and nine more rapid rail and siding projects will follow.

CBH continues to work through the approval process with government stakeholders while procuring long-lead items for track and offloading facilities, including steel, sleepers, bins and conveyors.

Source: CBH Group

About Jun Quentin

Check Also

Railways in Movies: North by Northwest

from north to northwest Newly dressed passengers walk past the New York Central’s 20th Century …