GrainCorp bunker storage: Bulk handler adds 80,000 tonnes at Murchison East

More details about the million tonnes of extra grain storage being built to cope with the expected second big harvest in a row are emerging.

GrainCorp is increasing its storage capacity because another year of big receivals is expected.

GrainCorp is adding 80,000 tonnes of bunker storage to its Murchison East receival site in preparation for the second big harvest in a row on the east coast.

GrainCorp managing director Robert Spurway told The Weekly Times the Murchison East upgrade was part of a million tonnes of extra storage being built to cope with anticipated demand.

Other extra storage across Victoria, NSW and Queensland is being kept confidential until local planning approvals are approved.

GrainCorp has also drawn up a list of previously closed storage sites to be reopened once local need has been determined.

Mr Spurway said these added up to an extra 500,000 tonnes of capacity.

“We are unable to disclose which of these flex sites will be opened,” he said.

“We are still working out which ones make sense.”

Mr Spurway said GrainCorp was expecting another big year of receivals but was awaiting the next crop report to be issued by the Australian Bureau of Agricultural and Resource Economics and Sciences in mid-September to see production estimates for the east coast.

“We expect we will get a good share of that crop based on the fact that supply chains on farm are fairly full and domestic feed is fairly fully satisfied,” he said.

“But we’re not putting numbers on that at this point.”

GrainCorp is expecting the carry-over of grain into the new season to be about 4.5 million tonnes despite export shipments were at the top end of expectations.

He said July was a record sales month and last week, GrainCorp shipped out 260,000 tonnes through the ports and 120,000 tonnes in domestic sales.

Viterra chief operating officer James Murray said his company was well placed to handle this year’s expected above average harvest of 8.5-9 million tonnes.

Mr Murray said last season’s receivals were six million tonnes, as South Australia had an average harvest.

He said Viterra would export 5.2 million tonnes this season and would start the 2021-22 season with a below average carry-in.

He said the company had 10 million tonnes of storage capacity in SA and western Victoria and did not need to build extra capacity this year.

“We’re well positioned to handle this year’s crop,” he said.

Western Australia is expected a record 20 million tonnes of crop this harvest and concerns are being raised about the preparedness of bulk handler CBH.

In June, the company said it was well behind in its shipping program.

A WA source told The Weekly Times ships were banked up off the coast ready for loading and CBH was paying many millions of dollars in demurrage costs.

A CBH spokeswoman said the company would not disclose demurrage costs because the “number is changing constantly”.

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GRAINCORP TO REOPEN CLOSED STORAGES