CBH cuts back on the east coast

29 Apr, 2016 02:00 AM
CBH will close its Melbourne office and is relocating positions to Perth and Adelaide from the east coast.
CBH will close its Melbourne office and is relocating positions to Perth and Adelaide from the east coast.

CBH IS scaling back its east coast grain accumulation network and closing its Melbourne office.

A little over ten years since it opened in Melbourne in 2004, with an ambitious plan to become a major player on the east coast, the Western Australian grains giant has decided to relocate its east coast accumulation centre to Adelaide and the east coast trading roles to the main Perth office.

There are likely to be a couple of regional positions left on the east coast and South Australia, but the Melbourne office, which had around eight staff members at its peak, will be shut down.

Along with the Melbourne office, CBH also had a strong regional accumulation network through SA, Victoria and NSW.

However, a spokesperson for the company said it did not mean the company would be exiting the east coast grains space.

Instead, she said the work would be conducted more efficiently out of Perth and Adelaide.

“The decision to centralise the accumulation functions to Adelaide was made to align this function in the region where the majority of CBH's tonnages are accumulated,” she said.

The writing has been on the wall for the Victorian and NSW positions for some time.

Last year, CBH announced a number of redundancies, including that of the east coast manager, traders and regional positions.

There has also been a failed push into east coast logistics.

The company was on the cusp of investing in an east coast storage network, however announced last year it would not be pursuing the project.

In turn, the lack of an upcountry storage network is regarded as one of the reasons CBH publicly announced in January it wished to sell its share in the Newcastle Agri Terminal port facility, which it co-owns with Olam and Glencore Grain.

All impacted workers have been offered roles with the business in either Adelaide or Perth.

Gregor Heard

Gregor Heard

is the national grains writer for Fairfax Agricultural Media
Date: Newest first | Oldest first


4/05/2016 9:32:15 AM

As a CBH shareholder I'm confused in relation to CBH, s strategic direction. In a very globally competitive environment a business focus on one state , WA , will not deliver the best future outcome
5/05/2016 8:40:09 AM

X, you miss the point. CBH is a service provider with a focus on providing efficient and low cost grain handling in WA. As long as it is not too distracted from that objective and sticks to its knitting, there is no reason why it can't be highly competitive, to the benefit of shareholders.
5/05/2016 5:38:20 PM

If CBH has surplus funds to start spending on non core empire builds, then it is charging WA growers too much and these high costs will serve to underwrite the business case for the competition to invest in WA. If CBH is not efficient, then it loses its most profitable tonnes to the competition as has happened in the Bunbury catchment. Just wait til they target the Kwinana zone. It ain't far off either. Muchea and Meckering supersites.


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