Neil Johns, Graincorp: Improving the efficiency of grain logistics at bulk and container ports
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Transcript of Neil Johns, Graincorp: Improving the efficiency of grain logistics at bulk and container ports
Neil Johns, 20 November 2013
Improving efficiency at Bulk Grain Ports
Grain underpins global food
- 2 -
Wheat Barley Soybean Pulses Corn Canola
Cereal Foods & Beverages
Industrial Starch, Biofuels Edible
Oils
Animal Protein Beef, Poultry & Eggs,
Pork, Dairy, Fish
Grain processing
Food Products
Malting Ethanol Oil crushing Feed Milling
Sorghum
Grain supplies 60% of global calories
45% 55%
‘Food Security’ will drive trade
- 3 -
Grain Demand
Traded Grain
Population
Grain growth drivers to 2050
35% 50% 100%
45
11 9 16 1 20
27
44
23 12
14
-1
3
16
ME/North Africa Sub-SaharanAfrica
Sub-Continent Asia (ex.China) China Latin America Developed
+98%
+200% +140%+90%
+14%
+57%
Wheat Imports Growth to 2050MMt
Grain growth is on our doorstep
MENA
Sub-Saharan Africa
Asia
Sub-Saharan Africa
Asia (ex-China)
45% 76% 7% 100% 1% 57% 10%
Imports % of consumption
Sources: USDA, US Wheat Associates - 4 -
Middle East North Africa
World Wheat Imports Growth to 2050
Australia’s leading grain business
- 5 -
GrainCorp is Australia’s leading grain business with the largest network in eastern Australia
– 7 bulk grain ports ~16mmt elevation capacity handling ~85% of bulk exports
– 280 silos with~20mmt country storage capacity handling~55% production
– 2 port container facilities ~0.5mmt packing capacity
– 2 non grain bulk ports
– Manages 15+ trains handling ~60% of export grain rail transport
Country Storage Rail/Road Port Elevators
tonnes of storage
40m
~18m
Crop average
Port average
CAPACITY
utilisation
~35%
1. Grain constraint: Rail transport
- 7 -
Port capacity is not a constraint
0%
20%
40%
60%
80%
100%
-
2
4
6
8
10
12
14
16
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MM
T
GrainCorp Bulk Exports Excess Capacity Average Utilisation
Port utilisation ranges from 5% to 65%
- 8 -
Major constraint is rail transport
RAIL
RAIL
ROAD
ROAD
0%
20%
40%
60%
80%
100%
2004 2013
Use of rail transport has fallen from 90% to 60%
9
Contract flexibility
Capacity flexibility
Pricing flexibility
One size fits all
First in first served
Reference prices
2. Grain constraint: Regulation
- 10 -
Port regulation not required
0
3
6
9
12
0
3
6
9
12
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MM
T
MM
T
GNC Bulk Exports Containers Non GNC Bulk Exports
Non-GNC grain exports increased 3 fold in past 10 years
QBT
Port regulation applied unevenly
11
Mackay
Gladstone
Brisbane
Newcastle
Port Kembla
Geelong
Portland
NAT
Louis Dreyfus
Melbourne (Emerald)
Regulated Non-regulated
Containers
Containers
Containers
Containers
Thank you & Questions