Australia: port Kembla’s main grain line closed until Aug-Oct

Rail access to Port Kembla looks like being restricted to one line until August at least to allow repairs to be carried out to rectify damage caused by torrential rain last month.

The Moss Vale-Unanderra line was initially expected to reopen this month, but a source today said rail-line operator ARTC has today advised instead it is expected to reopen in four to six months.

“That’s August to October,” the source said.

Port Kembla is one of NSW’s two bulk grain ports, with Newcastle the other.

Both are home to a GrainCorp and a Qube export terminal and, like every other terminal from Brisbane to Geraldton, they are booked solid over coming months as Australia exports its record 2021-22 winter crop.

The halving of rail capacity into Kembla is expected to make filling vessels on time difficult for exporters including ADM, Arrow, Cargill, CHS Broadbent, ETG, and GrainCorp, all of which have cargoes booked to load at the southern New South Wales port prior to August.

While Kembla loads the occasional cargo of barley, it is this season loading only canola and wheat.

After a short closure caused by rain damage, the Illawarra rail line into Port Kembla via Sydney is operating.

However, trains using the route share the system with passenger trains, which makes scheduling more difficult, and the extra distance and steeper gradient make for longer and more expensive transit.

“It’s an extra $7 a tonne, and you need more locos that don’t exist…and it’s a greater cycle time of 72 hours, not 48 hours.”

Another source said going via Sydney adds another four hours in straight travel time.

Exporters have already been shifting capacity into Victorian ports where possible, and using more road transport to help compensate for the reduced rail access into Kembla.

ARTC has been contacted for comment, and two of the affected exporters have described the situation as “not ideal”, but understand the need to rectify the rail line to ensure safe operation.

GRAIN Central

Tags: barley, canola, wheat, rail, Port Kembla, restricted, bulk, grain port