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The foundation of this pleasing performance is the rejuvenation of GrainCorp’s storage and handling business through a five year, $250 million capital injection. This intensive capital program, designed to improve service to customers, will improve the quality of future earnings. Investment in our core business has now peaked and future capital expenditure will be aligned to maintain existing infrastructure. 

Increased competition in storage and handling presents the opportunity to streamline the Company’s cost base and optimise the productivity of its extensive silo assets. From the farm to the port, these assets are already incomparable. 

GrainCorp operates some of the most modern and efficient grain handling facilities in the world and intends to maintain this competitive edge through ongoing and focused capital investment. 

GrainCorp has already committed to a further $40 million worth of capital expansion. 

Included among capital projects was the construction and commissioning of a $2.5 million grain-grading plant, which can deliver increased prices to producers at GrainCorp's Newcastle Terminal. The grading plant allows GrainCorp’s customers to clean large parcels of grain with increased precision and speed. 

Most importantly, GrainCorp has the right people on the ground where it counts, with grain traders and grain accumulators located throughout NSW and a growing number in Victoria. GrainCorp is continuing to develop its network of rural Service Centres, which are providing producers with products and services from fertilisers and seed to financial solutions. 

GrainCorp Service Centres provide a year- round relationship with customers and generate employment in small rural towns that have suffered the withdrawal of services. 

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A large percentage of GrainCorp’s assets, whether country or port-based, are commonly linked by rail. Consequently, GrainCorp needs to ensure it has an involvement in that industry. 

An involvement in rail is a defined and strategic direction for GrainCorp. Rail provides the ability to accumulate grain, to store grain and to deliver grain to GrainCorp’s own ports, or to its domestic customers in a seamless operation. 

Integration of these core functions will realise greater efficiencies that will be of direct and substantial benefit to all stakeholders in GrainCorp’s business. It is a significant and necessary step that the grains industry cannot afford to neglect. 

Integration of these services and the consequent emergence of competing supply chains are vital for future progression. 

GrainCorp’s future clearly lies in being an integrated logistical partner for its customers, providing solutions for their businesses. 

