Donaldson questions O'Brien on CBH's claims that poor rail conditions cause grain shipment delays. O'Brien refutes this, attributing delays to CBH's new business model, deregulation, and a bumper crop, while affirming rail line maintenance.

AnsweredQoN 253Legislative Council
Asked
18 March 2009
Portfolio
Transport

QuestionView source ↗

GRAIN FREIGHT NETWORK — CO-OPERATIVE BULK HANDLING
Can the minister respond to public comments from Co-operative Bulk Handling that suggest that the cause of ships waiting offshore for grain to be delivered to port is the poor condition of rail lines that, by inference, have not been properly maintained? Hon SIMON O’BRIEN

AnswerView source ↗

I thank the member for some notice of the question. I have noted comments attributing grain handling problems to the state of the rail lines. In relation to those matters, I have communicated regularly with the Public Transport Authority and WestNet Rail. WestNet is responsible for maintaining the rail network in a fit-for-purpose state that ensures that grain can be moved by rail. Both WestNet and the PTA have assured me that WestNet has maintained the lines at a standard equal to or better than they were in 2000. They have both assured me that the rail lines were not to blame for problems encountered by CBH as the primary grain handler. CBH has been implementing its new business model, Grain Express, which has seen a reduction in rail use by CBH to move the grain. The combination of a new business model, a new deregulated grain market and a bumper season—which has produced the second biggest crop ever—has created unforeseen problems for CBH. These are not problems to be blamed on the state of the rail line. I call on CBH to take note of its problems this year and review its model to reconsider its own move away from rail, especially if the trend in recent decades of bigger crops continues. This government is looking into further investment in rail because we have confidence in our state’s future and the future of its farm sector, unlike the previous government, which talked a lot but did nothing.
Hon SIMON O’BRIEN replied: I thank the member for some notice of the question. I have noted comments attributing grain handling problems to the state of the rail lines. In relation to those matters, I have communicated regularly with the Public Transport Authority and WestNet Rail. WestNet is responsible for maintaining the rail network in a fit-for-purpose state that ensures that grain can be moved by rail. Both WestNet and the PTA have assured me that WestNet has maintained the lines at a standard equal to or better than they were in 2000. They have both assured me that the rail lines were not to blame for problems encountered by CBH as the primary grain handler. CBH has been implementing its new business model, Grain Express, which has seen a reduction in rail use by CBH to move the grain. The combination of a new business model, a new deregulated grain market and a bumper season—which has produced the second biggest crop ever—has created unforeseen problems for CBH. These are not problems to be blamed on the state of the rail line. I call on CBH to take note of its problems this year and review its model to reconsider its own move away from rail, especially if the trend in recent decades of bigger crops continues. This government is looking into further investment in rail because we have confidence in our state’s future and the future of its farm sector, unlike the previous government, which talked a lot but did nothing.
I thank the member for some notice of the question. I have noted comments attributing grain handling problems to the state of the rail lines. In relation to those matters, I have communicated regularly with the Public Transport Authority and WestNet Rail. WestNet is responsible for maintaining the rail network in a fit-for-purpose state that ensures that grain can be moved by rail. Both WestNet and the PTA have assured me that WestNet has maintained the lines at a standard equal to or better than they were in 2000. They have both assured me that the rail lines were not to blame for problems encountered by CBH as the primary grain handler. CBH has been implementing its new business model, Grain Express, which has seen a reduction in rail use by CBH to move the grain. The combination of a new business model, a new deregulated grain market and a bumper season—which has produced the second biggest crop ever—has created unforeseen problems for CBH. These are not problems to be blamed on the state of the rail line. I call on CBH to take note of its problems this year and review its model to reconsider its own move away from rail, especially if the trend in recent decades of bigger crops continues. This government is looking into further investment in rail because we have confidence in our state’s future and the future of its farm sector, unlike the previous government, which talked a lot but did nothing.
I have noted comments attributing grain handling problems to the state of the rail lines. In relation to those matters, I have communicated regularly with the Public Transport Authority and WestNet Rail. WestNet is responsible for maintaining the rail network in a fit-for-purpose state that ensures that grain can be moved by rail. Both WestNet and the PTA have assured me that WestNet has maintained the lines at a standard equal to or better than they were in 2000. They have both assured me that the rail lines were not to blame for problems encountered by CBH as the primary grain handler. CBH has been implementing its new business model, Grain Express, which has seen a reduction in rail use by CBH to move the grain. The combination of a new business model, a new deregulated grain market and a bumper season—which has produced the second biggest crop ever—has created unforeseen problems for CBH. These are not problems to be blamed on the state of the rail line. I call on CBH to take note of its problems this year and review its model to reconsider its own move away from rail, especially if the trend in recent decades of bigger crops continues. This government is looking into further investment in rail because we have confidence in our state’s future and the future of its farm sector, unlike the previous government, which talked a lot but did nothing.

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