WA grain transhipment idea awash with support from growers

WA’s grain exports capacity could soon be bolstered with a privately-funded group scoping out out an additional pathway for grain producers to maximise premium prices when demand is high.

Countryman understands planning has been well underway by a private investor group, Sea Transport, into setting up “an additional pathway” for grain producers to access export markets from January to June when world demand was usually at its peak.

The Pastoralists and Graziers Association of WA, WAFarmers and WA Grains Group have all been in “lock step” and supportive of the concept, similar to what has been operating successfully at Lucky Bay on South Australia’s Eyre Peninsula with T-Ports for three years.

The $130 million development was SA’s first farmer and private equity partnership port, which had its one millionth tonne of grain delivered into the system in December 2022.

Pastoralists and Graziers Association grains committee chair Gary McGill said they were “confident” that the group was serious about its investment in WA, which could see four shallow water port sites located near the Dongara, Jurien, Lancelin/Ledge and Ravensthorpe areas, with “a number of up-country aggregations to support those ports”.

He said the aggregation sites would operate as depots for grain producers to deliver in to, that would ensure export quality standards were met, before the grain was transported to the ports and shipped via a transhipment vessel out to a bulk grain ship waiting off the coast.

The transhipment vessel would unload into the cargo ship and repeat the process until it was full and embarked towards its destination.

“We have thoroughly examined the concepts put forward by Sea Transport and are confident in the prospects of them investing in WA,” Mr McGill said.

The concept would allow for three to four million tonnes of grain to be exported through the additional export pathway, which Mr McGill said was “a good thing” for the market and would compliment CBH’s existing infrastructure and model.

Mr McGill said the volume would unlikely make much of a dent in CBH’s throughput as WA growers continued to produce harvest results of about 25MT, depending on the seasons — especially with the amount of extra land expected to be cropped if a phase out of the live sheep trade goes ahead.

While he wasn’t sure of the costs associated with the investment, Mr McGill said the likelihood of it getting off the ground by 2027/28 was good.

Local contact for the investor group, former CBH director and Morawa grain grower Rod Madden, said while “the concept will work” it was subject to “WA Government approvals to access Crown Land, excavation and groynes being built” in the identified locations.

Mr Madden said all financials and capital details were “confidential” and he didn’t wish to speak further until approvals were granted.

Mr McGill and Mr Fowler travelled to South Australia in July to tour T-Ports transhipment vessel and were impressed with the set up, as well as that of the whole system.

“It was a positive experience,” he said.

“We spoke with growers and traders and they were all positive about their experience and described it as a game changer for them.”

He said the three grain groups were supportive of CBH’s “serious” $4b investment in new rail and infrastructure to tackle the logistics and port issues in WA, and the different concept could benefit the cooperative during busy times of the year to ensure greater returns to growers.

“Any trader that operates in WA can elect to use the Sea Transport facility,” Mr McGill said.

“Whether CBH chooses to or not is up to them.”

CBH decline to commented on the plan.