Mallee rail future in doubt

On Tuesday, the bulk grain handler released a statement saying it would transition from rail haulage to road transport for moving grain from the Mallee region from August 1.

Viterra group commercial manager Andrew Hannon said the move was "the most efficient and cost-effective supply chain for Mallee graingrowers".

Viterra was the only user of the two Mallee rail lines, operated by Genesee & Wyoming Australia, averaging one train a week on each line.

GWA did not return Stock Journal's calls before deadline but stated in February that regardless of the outcome of discussions with Viterra and the state government, "we will continue to maintain the tracks to ensure they are operational and available for any user".

Grain Producers SA chairman Garry Hansen said the announcement was disappointing, but not surprising.

"GPSA have felt it was inevitable that Viterra would choose road transport, as the rail numbers weren't stacking up," he said.

"So it is good that they have made this announcement early – it gives growers time to adjust to the change before harvest."

But Mr Hansen said GPSA would closely monitor Viterra's supply chain costs after August 1.

"Supply chain costs have increased substantially in the past 10 years, and we are still pushing for an inquiry into this, but we have been assured by Viterra the freight differentials will not go against growers," he said.

Mr Hannon said there would be no impact on services at the Loxton, Pinnaroo, Lameroo and Karoonda silo sites.

"We will continue to operate our grain storage network in line with seasonal requirements and demand, and the smaller sites in our network play a key role in the provision of segregation and grain storage capacity right across the state," he said.

GPSA will also be calling on the state and federal governments for more funding to fix Mallee roads to take on the extra road freight, estimated at 3000 B-double truck movements annually and even upgrade to allow road train use.

Local Member for Chaffey Tim Whetstone agreed, saying the Mallee and Karoonda highways were "already under increasing pressure from a lack of road maintenance".

"Without rail, hundreds of extra weekly truckloads of produce will take these routes," he said.

A spokesperson for Transport Minister Stephen Mullighan said in the past 12 months, the state government had invested more than $4 million in road infrastructure in the region to account for the anticipated increase in freight on local Mallee roads.