1. The future of grain on rail GrainCorp’s perspective
AusRAIL PLUS 2005
22 November 2005

2. GrainCorp – why rail matters to us

3. Impact of rail on the grains industry
The delivery of rail services significantly impacts GrainCorp’s ability to service its customers:
Adequate capacity and timely delivery
The absolute level of rail rates set by the rail provider
Relative rail rates between silos affects the viability of GrainCorp silos against competitive

4. The nature of the grains industry
Historical receival comparison (ex-farm)
2005/06 (forecast) 11 million tonnes winter crops only (Qld, NSW, Vic)
2004/05 (actuals) 9.5 million tonnes summer & winter crops (Qld, NSW, Vic)
2003/04 (actuals) 11.8 million tonnes summer & winter crops (Qld, NSW, Vic)
2002/03 (actuals) 2.1 million tonnes summer & winter crops (NSW, Vic)
2001/02 (actuals) 12.0 million tonnes summer & winter crops (NSW, Vic)

5. Investment An ongoing role for government investment
Branch line maintenance - $69 million welcome but more needed
Community benefit requires community investment – below rail responsibility remains with government
Plan for post 2007
Investment must be linked to rewards
A place at the table for all participants
Those who benefit from an efficient grain line system should invest in it
Those who invest in the system are entitled to share in the benefits
The value of collaborative investment

6. Access
Victorian Government initiated reform process in July 2004 by declaring that existing arrangements were “unworkable”.
Pricing regime under development with new system scheduled to be operational before harvest 2005/06
The Victorian system provides a model of how things should not work

7. Contestability
Transparent and impartial administration of below rail infrastructure can only be carried out by governments
Victorian system requires:
Access to conditional paths on fair terms
Protocols for train programming
Access to safe working systems; and,
Standardised access agreements
Collaboration and limited competition are not mutually exclusive

8. The future of grain on rail GrainCorp’s perspective
AusRAIL PLUS 2005
22 November 2005