Bunge gives Bunbury test run

21 Apr, 2014 02:00 AM
Bunge Australia accepted its first grain deliveries at the company's Bunbury export terminal last week. The grain was used to test the workings of the facility.
We're really happy with the progress of the build.
Bunge Australia accepted its first grain deliveries at the company's Bunbury export terminal last week. The grain was used to test the workings of the facility.

BUNGE Australia has accepted its first grain deliveries at the company's newly developed Bunbury port site.

But company general manager Chris Aucote said the 3000 tonnes of wheat trucked to the site was for use in the commissioning process.

The final truckloads were delivered on Wednesday last week before being run through Bunge's new silos, elevators and other equipment to ensure it would function as specified come future harvests and their associated delivery periods.

"The delivered tonnes aren't bound for a boat as of yet," Mr Aucote said.

"It's just a practice run - we haven't even got all the proper roadways and associated infrastructure in at the port just yet."

But despite that Mr Aucote said the relatively small deliveries had been very exciting and the testing process had run very smoothly.

"We were always going to have a few little teething problems with something that's this new," he said.

"We're really happy with the progress of the build and happy with how the tests, which circulate the grain through all the available pathways at our port facility, are performing so far."

Long-time proponent of competition at the ports and Pastoralists and Graziers Association Western Grain Growers Committee chairman John Snooke said his committee was rapt that Bunge would soon be exporting grain from Bunbury and posing as competition to the 80-year CBH export monopoly in WA.

"We've been surprised at how quickly the build has happened," he said.

"The way Bunge runs its business is extraordinary.

"It was very well prepared when it was first approved to enter the WA grains space and it has been really good to see."

Mr Snooke said the timeline Bunge set for itself, and shared with the PGA on its entry to WA, has been met and it marked the real start of the evolution of WA's grains industry.

"We need competition in our supply chain," he said.

"Eastern States growers are being exposed to more competition and now it's our turn."

p Industry speculation suggests Bunge could accept the first of its accumulations for export before the middle of the year.

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21/04/2014 10:26:00 AM, on Farm Weekly

21/04/2014 1:24:37 PM, on Farm Weekly

The behaviour of CBH down in the Bunbury catchment this year will see very proactive up country investment by both Bunge and the other multinationals who are now set to unravel their plans for WA. It is clear port investment can only be exploited if you don't need to depend on grain stored in CBH. CBH is about to be overwhelmed by a wave of investment from the competition. And the Kwinana zone is where the competition will target given the huge catchment that still has potential to produce yet more grain from the high rainfall livestock areas.
22/04/2014 7:45:42 AM, on Farm Weekly

up country receival sites will start popping up in the kwinana zone in the next 1-3 years. expect some major announcements in the coming 6 months. the competition knows they simply have to attack kwinana to bring the co-op cbh to its knees. sites likely on major highways just outside of the national parks. storage and handling costs will be discounted (loss leading) to bankrupt the co-op. growers should have gotten their equity when they had a chance. irony is it will be lack of loyalty of shareholders that deals grain to the competition. sad tale of wasted wealth
NSW Farmer
22/04/2014 7:48:50 AM, on Farm Weekly

CBH needs to take the co-op to the next level and bring NSW farmers onto the share registry. we can all enjoy the benefits of corporatisation when it happens. Without help from WA farmers we have a massive debt crisis about to unfold in rural NSW
22/04/2014 7:54:18 AM, on Farm Weekly

The competition knows it has to invest up country to make these port investments work. You will see a number of key Wheatbelt towns become up country receival hubs in the coming years. The farmer directors on the current board wouldn't have a clue how to deal with the strategies the ABCD's of grain will employ to bring the co-op to its knees. When you think about it, all they have to do is set up shop in Kwinana, CBH's cash cow zone, & discount rates one or two years & it will be lights out for the co-op. Disgraceful this board can't see beyond the nose on their faces.


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