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GrainCorp cuts 80 jobs as part of restructure

GrainCorp has today announced that it will be closing some of its regional receival sites before this year’s harvest, as well as cutting 80 jobs as part of a $200m overhaul of its country network in Victoria, NSW and Queensland.

GrainCorp Executive Chairman Don Taylor said that inefficiencies within the rail network are increasing GrainCorp’s costs and that the restructure, titled Project Regeneration, will seek to return one million tonnes of grain to rail through reduced train cycle times and more reliable operations.

“Rail freight performance has been in decline for some years,” said Taylor. “Slow loading and short sidings mean grain trains are shunted across multiple sites and cycled slowly, creating both cost and complexity. Furthermore poor track conditions limit wagon weights and track speed, adding to inefficiencies.

“We estimate rail costs in eastern Australia are $10 per tonne higher than best practice, reducing returns to growers by around $180 million in an average season. GrainCorp’s investment will significantly improve our network’s interface with rail and help reduce rail costs by $5 per tonne.

Taylor added that in order for the network to run to run efficiently, further investment by track owners in the government-owned rail infrastructure is essential.

In reference to the staff layoffs, Taylor said that the 80 affected staff will be redeployed where possible, and that all affected people will receive their full entitlements.

 

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