CBH eyes Bunge dominated Bunbury facility

COOPERATIVE Bulk Handling (CBH) is looking to expand its operations announcing its interest in a new grain receival site near Bunbury, in Western Australia’s southern region.
CBH eyes Bunge dominated Bunbury facility CBH eyes Bunge dominated Bunbury facility CBH eyes Bunge dominated Bunbury facility CBH eyes Bunge dominated Bunbury facility CBH eyes Bunge dominated Bunbury facility

Kristy Moroney

The grower cooperative said the 120,000 tonne storage site located in Roelands, 20km from the town of Bunbury would meet grain producer demand.

The proposed new receival site would challenge United States competitor Bunge, who also operates in the south west of the state and has impacted CBH’s market share in the region.

General Manager of operations David Capper said if the plan passes all of its approvals both internally and externally, he'd like to see something on the ground by the end of 2017.

"As with everything, I'd like to have something on the ground this year, but that will have to wait and see," Capper said.

“It's not going to be an enormous site, but (as) always our objective is lowest cost pathway to port for growers and at the moment that area is pretty poorly serviced with Albany and Kwinana not having great road or any rail linkages to them,” he said.

The CBH general manager of operations said the cooperative had spoken to a lot of growers who are growing a lot more tonnes throughout last year.

“All of them indicated that that was an attractive pathway for them," Mr Capper said.

"Where we can capture volume and deliver benefits back to all growers, we should always consider that and that's what we're doing here,” he said.

"Competition is one aspect, but as with all our network it's about providing growers with the right level of service. Now we've got the Coalfields Highway we can leverage off, we think we can do a better job in that area."

CBH will now lodge a development approval submission for the $9 million project with the Shire of Harvey in May, with a final investment decision to be made by the cooperative board.