Container grain a step closer

The option of exporting grain in containers is a step closer for grain growers within Australia’s Esperance port zone (EPZ) following the announcement of funding for a feasibility study, the Countryman reported.

The project has just received a little over US$45,000 of funding through the Western Australia state government’s Royalties for Regions regional grants scheme, which is administered by the Goldfields Esperance Development Commission (GEDC).

The South East Premium Wheat Growers Association (SEPWA) has developed the project to investigate if a containerised grain trade through the port could profit the region or be a pipe dream.

It is driven by the opportunity to utilise a container crane at the Esperance Port, which was originally installed to service the defunct BHP Ravensthorpe Nickel Project and a newly deregulated grain market.

SEPWA president, Lyndon Mickel welcomes the funding and is grateful that Royalties for Regions sees value in the project, which has the ability to provide local grain growers with a valuable insight into the logistics of exporting grain in containers.

He said it is an exciting project which could create new marketing opportunities with a great diversity of markets and also foster new cropping alternatives for growers in the region.

“It will also help growers understand the costs involved in the exporting of grain in containers, which under the single desk grain marketing system growers weren’t privy to,” Mickel said.

Leader of the project, SEPWA projects officer, Nigel Metz, said containers offer an opportunity for grain exports of niche grades which could return premiums above the traditional bulk single destination cargos, which service the port.

“Currently it appears the main container trade will be supported by the regions minerals exports.

“With this underpinning the container shipping services in the near future, it makes sense to look into developing supporting trade from the regions grain production,” Metz said.

The first part of the project will identify if Esperance can fit in with the container trade logistically, what is needed to underpin a containerised grain trade and most importantly the costs associated with the trade and how it compares to bulk exports.

If containers appear to be economically viable, it will then progress to the second stage which will assemble relevant information for industry stakeholders in an attempt to initiate grain container trade from the region.

The project’s findings will be extended to all stakeholders and key market players will also be alerted as to potential opportunities.

Mickel said the group has no plans to become involved in grain marketing but is undertaking the project to help further develop the grains industry in the EPZ.

“We just want to facilitate the marketing of grain to end users and promote Esperance grain for the benefit of grain growers in the region,” Mickel said.

The project will commence in August with the first stage expected to be completed by the end of the year.
(Source:www.cargonewsasia.com)