SAFETY will remain the CBH Group’s greatest priority, as its new chief executive officer Jimmy Wilson begins his tenure at Australia’s largest grain exporter.
The former BHP Billiton iron ore boss took the reins from former CBH CEO Andy Crane on October 1 and has since signalled an increased focus on safety to reduce workplace injuries at the bulk handler.
Mr Wilson is among 21 people – including eight past and present BHP Billiton employees – facing charges of culpable homicide after 19 people died following a dam collapse in 2015 at Brazil’s Samarco mine.
The mine is a joint venture owned by BHP and Brazilian mining company Vale.
After a review of safety procedures in place at CBH, Mr Wilson said he was comfortable with safety standards but would be aiming for improved targets.
“I think the thing that keeps you awake at night always is safety, at the end of the day you don’t want to have any fatalities, you don’t want to have any incidents,” Mr Wilson said.
“This is a business where there’s lots of moving parts, there’s equipment, there’s vehicles – I guess that is the piece that always worries an executive in this sort of business.
“There’s always that potential which is why Andy (Crane) pushed so hard and I will push so hard on the safety front.
“The mantra that I run is safety, culture, cost, volume.”
Mr Wilson said while he was “remorseful and regretful” of the dam collapse at Samarco, he was confident BHP and its executives would not be found responsible for the event.
“BHP Billiton stands by its executives and obviously the organisation itself in terms of the processes that were applied so (I’m) hugely supported by BHP Billiton and very appreciative of that and very confident in our situation on that case,” he said.
He expected the court case to run for several years.
Mr Wilson said although the supply chain at BHP was more simple than the CBH network, there were several transferable skills he would bring across to the co-operative.
Mr Wilson led BHP’s energy coal, stainless steel and nickel west divisions in Australia and managed BHP’s chrome and aluminium operations in South Africa, before becoming president of the company’s iron ore division where he was recognised for posting massive savings of up to 50 per cent.
After a month in the top job at CBH, Mr Wilson believed there was plenty of opportunity to deliver greater value to the co-operative’s 4200 grower members, with the most potential for improvement within the company’s operations division.
He said his experience in operations would help CBH deliver its $750 million Network Strategy announced earlier this year, to decrease receival sites from 200 to 100 locations over the next decade.
“I’ve got an operating pedigree whereas Andy (Crane) probably had more of a marketing pedigree and so naturally I will probably add a bit more value on the operating side of the business and possibly focus in that area a little bit more,” Mr Wilson said.
“That’s probably where the business needs to focus now given that we’re going to be deploying this $750m on the network over the next five to 10 years.”
The new CEO said successfully delivering the Network Strategy would help ensure Australia remained competitive in its important South East Asian markets.
According to CBH estimates, South East Asia’s demand for wheat is expected to grow by 13 million tonnes over the next decade, while supply is expected to increase by about 17mt.
Mr Wilson admitted Australia would likely lose some of it’s market share to competitors in the Black Sea and North America.
“It’s going to be tough going forward,’’ he said.
“Given that obviously our focus has got to be to safely and sustainably, with the right culture, get CBH’s costs down the cost curve and ensure that we’re competitive long-term.
“As a result the strategy within the business – in the storage and handling business and in the logistical part of the business – is to get down that cost curve sustainably and safely.”
Mr Wilson said he believed the co-operative business model would help deliver extra cost reductions and give growers more control.
He dismissed rumours he was approached by the Australian Grains Champion last year in its bid to corporatise CBH.
“Certainly if I was a grower, I would want the co-op model, I wouldn’t want any other model, simply because with the outbound logistics they have control over those costs,” Mr Wilson said.
After attending several grower meetings since beginning with CBH, Mr Wilson said he had received plenty of feedback.
He said he was looking forward to meeting CBH staff and growers as this year’s harvest got into full swing.
“The main feedback is to get out outbound logistical costs down, make our receival points work more effectively and more efficiently and to progress with the network rationalisation,” he said.
“They (growers) are an astute bunch of people, these are all businessmen in their own rights - they’re pretty innovative, they’re pretty astute, they’re pretty capable folk.”
