A Manildra locomotive and wagons transporting product across rural NSW. Photo: Manildra

AUSTRALIA’s biggest grain user, Manildra Group, is pushing ahead with a $250-million investment in rail, including a new fleet of locomotives and wagons to move wheat to its mills and transport finished products across the country and to export markets.

The move is part of a larger string of capital investments, which reached a milestone of $1.137 billion between 2021 and 2024, aimed at enhancing energy and operational efficiencies, according to Manildra’s 2024 Sustainability Report – Adding Sustainable Value released earlier this month.

The report outlined that most of Manildra Group’s $250M rail investment, around $220M, has been allocated to rolling stock, including 17 high-tech locomotives and 385 wagons designed to carry grain, flour, and containers.

Grain Central understands Manildra in 2023 signed a long-term contract with rail freight operator Southern Shorthaul Rail to provide train crews and oversee the daily operation of the new rolling stock.

According to an article published in the International Rail Journal, SSR’s contract with Manildra commenced in November last year.

Manildra had previously contracted Pacific National to provide rolling stock and services for its rail-freight requirements.

The new locomotives and wagons were manufactured in the United States and commenced arriving in Australia last year for full operations in early-2025.

It is anticipated that the infrastructure will increase Manildra’s “grain unloading capacity to 78 tonnes in 20 seconds”.

New Manildra wagons.

“[W]e’re building a stronger and more resilient supply chain, by shifting more freight from road to rail,” Manildra Group managing director John Honan said in a forward to the report.

“This helps reduce our reliance on trucks, ease road congestion, and enable quieter, longer, and more fuel-efficient journeys with fewer emissions.”

Of the new custom-designed 100-tonne wagons, 222 have aluminum bodies for bulk grain, 103 to freight products in 20-foot containers, and 60 new flour wagons to more than double the company’s existing capacity.

Manildra has touted the new locomotives as “setting benchmark in rail performance” with the 17 advanced EMD GT46C-ACe Gen II locomotives engineered for “best-in-class tractive efficiency and adhesion”.

“Designed to meet our rigorous Australian standards and conditions, the locomotives are produced using 75 percent recycled material inputs by industry-leading manufacturers Progress Rail,” the report said.

Manildra Group head of logistics and transport Mark Owens said the new rolling stock had a focus on innovative technologies for safety, efficiency and sustainability.

“We are investing in science and technology to drive universal changes in the logistics industry to become less carbon-intensive, improve efficiencies of transport, and reduce unnecessary journeys,” Mr Owens said.

“This cutting-edge rail expansion demonstrates our ongoing commitment to providing safe, efficient logistics solutions that contribute to a healthier, more sustainable future.”

SSR expansion

The contract with Manildra secures SSR a 100pc share of the domestic milling grain moved by rail in New South Wales and Victoria.

Former service-provider, Pacific National, is still a major player in the NSW grain freight sector, with GrainCorp NSW and Vic among its contracts.

In addition to Manildra, SSR works with major millers George Weston Foods and Allied Pinnacle, and multi-commodity firms including Louis Dreyfus and Arrow Commodities.

It also provides services to Fletcher International Exports, DP World, SWIFT Freight, and Grainforce Logistics.

SSR itself invested in new rolling stock, taking delivery of 22 broad-gauge high-capacity grain wagons in August 2024.

This $5M investment was SSR’s first new-build broad-gauge rolling stock in its 21-year history.