Pacific National will haul for GrainCorp in NSW and Victoria for a further five years. Photo: GrainCorp

PACIFIC National is to haul grain in Victoria and New South Wales for major bulk handler GrainCrop for a further five years following the signing this week of an agreement to continue the existing arrangement.

PN has its roots in the NSW Government railway, and GrainCorp has its in the NSW Government handling authority, which means the organisations have worked closely together since early last century.

While the short-lived take-or-pay arrangement was a low point in the PN-GrainCorp relationship, PN has been hauling for GrainCorp on a needs basis under a contract which started in 2019, and will roll into a new one to take effect from November 2024.

In a LinkedIn post published on Wednesday, GrainCorp announced the signing of the new five-year deal.

“Over the last three busy and challenging years in the grains industry, we have moved 7.6 million tonnes of grain, with trains covering over 3.6 million kilometres to complete the task across NSW and Victoria,” the post stated.

Also in the post, Pacific National CEO Paul Scurrah said the company was honoured to continue to provide extensive regional and interstate rail haulage services to one of Australia’s leading agribusinesses.

“Pacific National has deep and unrivalled experience, expertise and capacity in hauling large volumes of grain safely and efficiently,” Mr Scurrah said.

“This includes being able to call on the resources of 300 highly trained and skilled essential frontline freight workers and a rolling stock fleet of more than 50 locomotives and 1400 grain wagons.

“As Australia’s largest private rail freight operator, Pacific National looks forward to continuing our close and longstanding relationship with the largest grain storage and handling company on the eastern seaboard.”

GrainCorp CEO Robert Spurway said GrainCorp’s longstanding partnership with PN was a pillar of GrainCorp’s integrated value chain.

“GrainCorp and Pacific National have worked together through the challenges of COVID-19 restrictions and weather impacts to the network over the last few years to deliver a strong supply chain performance for the industry.”

“We are looking forward to the next five years of collaboration.”

GrainCorp is the largest bulk handler by far in eastern Australia, and its grain in Queensland is hauled by Watco Australia under a 10-year agreement signed in 2018.