CBH launches a request for proposal process for new trains but concedes it could take ‘two years’ to arrive

CBH Group has put the wheels in motion to buy at least three more trains to bolster its 10-train fleet, but it could take two years before these are put into action in WA. The farmer co-operative this month launched a request for proposal with “multiple rain companies” to buy new standard gauge locomotives to bolster and replace its existing fleet. CBH chair Simon Stead said senior figureheads agreed the businesses needed more rolling stock and train sets but believed there was “a lot more” to be gained in the short term by using its existing train sets. CBH invested $175 million in its first-ever fleet of 22 locomotives and 574 wagons in 2010. Mr Stead revealed CBH’s plans to buy more trains at a public meeting with farmers at Kulin in August, saying CBH was focused on bolstering capacity on both road and rail. Mr Stead confirmed this week that buying more trains was part of the co-operative’s plan, and revealed it had released a request for proposal from “multiple rail companies” to buy new standard gauge locomotives to bolster and replace its existing fleet. “In line with our strategy to achieve a monthly peak export capacity of three million tonnes by 2033, CBH has started the multi-stage process of purchasing rail locomotives and wagons,” he said. “CBH is now looking to award contracts for the manufacture and supply of additional, standard-gauge locomotives, narrow-gauge locomotives and wagons, to replace and expand our current fleet. “The process has started with the release of a request for proposal for standard gauge locomotives . . . further requests for proposals are planned to be released in coming months for wagons, and narrow-gauge locomotives. “Multiple rail companies have been invited to participate in the current standard gauge locomotive request for proposal and it is anticipated this process will be completed by the second quarter of 2023.” About a third of WA’s freight rail network is standard gauge, most of which operates with a 23 or 24 tonne axel load. The narrow gauge network spans around 2500km, and is a mix of 16, 19 and 21 tonne axel load. About 300km is dual gauge, meaning both standard gauge and narrow gauge locomotives can use it. Aurizon took on CBH’s lucrative grain-on-rail contract for about $30m in August last year, just before the record 24.3Mt harvest. Aurizon provided three fleets — two narrow-gauge and one standard-gauge — to complement CBH’s 10 existing fleets, which have effectively been leased to Aurizon for management and driving. CBH recently leased an additional 10 locos from Aurizon as a bridging strategy before buying new trains. “We acknowledge we need more rolling stock, and more train sets. . . once we order the first three, the program will start with a replacement policy,” Mr Stead told farmers at the Kulin meeting. “We bought 10 train sets 10 years ago, and now we need to look at how we replace those moving forward. “We need a permanent audit of rolling stock and locomotives in the future.” At the meeting, Mr Stead said the company and Aurizon had this year been hamstrung by difficulty finding train drivers. WA is suffering a severe train driver shortage, with many switching to the mining industry where they can earn $230,000 a year in the Pilbara compared with the $95,000 that drivers are typically paid in Perth or regional WA. It has become such a trend that many reportedly refer to the Public Transport Authority as the Pilbara Training Academy. “At this time, one of the key constraints we have is having enough drivers to operate the trains we have running,” Mr Stead said. Mr Stead said it was not as simple as ordering “off the shelf”, because WA’s grain on rail network had a number of “bespoke requirements” including portions of narrow gauge lines and axel loading limits on those lines. “We are definitely looking at more train sets and we are close to finalising our requirements for the first three sets,” Mr Stead said. “Bearing in mind, delivery time is about two years until they come. “There is a lot more we can gain in the train sets we have on lines that are open right now, in terms of when we have enough drivers.”