ABB Grain and rail-freight transportation operator, Genesee & Wyoming Australia, are close to signing a five-year agreement to move millions of tonnes of grain harvested in South Australia.
The two companies have signed a memorandum of understanding ahead of finalising the agreement which would start on November 1.
ABB Grain's executive manager for group operations, John Warda, said the new agreement would provide "transportation certainty" for SA grain growers in the new fully deregulated market.
"The industry will require a coordinated supply chain approach for all exporters and ABB is best positioned to provide this service as a result of this proposed agreement with GWA," Mr Warda said.
"The long-term agreement will provide up to two grain trains on Eyre Peninsula lines and two on SA's standard gauge lines, the latter enabling ABB to rail grain into Port Adelaide and our new Outer Harbor terminal when opened.
"The agreement will complement our road freight activities across the South Australia and is vital for the smooth movement of grain."
According to ABB, on average 62pc of grain produced in SA reaches the export facilities via rail transport.
Genesee & Wyoming Australia's managing director Bert Easthope said the agreement was a positive step for the grains industry and the rail industry in ensuring that transport services were provided for the long term.
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