CBH Group

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The CBH Group (commonly known as CBH, an acronym for Co-operative Bulk Handling) is a grain growers' cooperative that handles, markets and processes grain from the wheatbelt of Western Australia.

History

File:Kwinana CBH 2.jpg
CBH's Kwinana grain loading terminal in November 2009

CBH was formed on 5 April 1933,[1] at a time when a royal commission on bulk handling of grain was in progress,[2][3][4] and after over 20 years of failed proposals for bulk handling of grain in Western Australia.[5]

The trustees of the Wheat Board of Western Australia and Wesfarmers registered the company together with capital of £100,000 divided evenly into 100,000 shares.[6][7] The cooperative was formed under the principle of one person, one vote, regardless of the amount of grain supplied.

CBH merged with the Grain Pool in November 2002, after the Parliament of Western Australia passed legislation allowing the merger to go ahead.[8]

In 2016, the Australian Taxation Office revealed that despite generating more than $3.4 billion in revenue in 2013/14, the company paid no tax. This made it Australia's biggest revenue earner not to pay tax in the period under review.[9]

Transport

File:CBH 10 entering Yillimining yard.JPG
CBH class hauled train at Yilliminning in October 2013
File:Albany port grain silo.JPG
Grain silos at Port of Albany 2016
File:CBH locomotive at Albany Port.JPG
CBH locomotive at Port of Albany 2016

During the early years most grain movement was by rail over the Western Australian Government Railways network, with sidings and branch lines specifically serving wheat growing areas. Many of the branch lines and rail facilities have not been updated or maintained, with road transport increasing in many areas.

In 2009, CBH decided to put its rail grain haulage services out to tender for the first time.[10][11] It aimed that the amount of grain transported by rail rise from 50% to 70%.[10][12] CBH settled on a business model that saw it invest in new locomotives and grain wagons, with day-to-day operations contracted out.[13][14]

In December 2010, CBH awarded Watco Australia a ten-year contract to operate services in the south of Western Australia.[15][16][17] To operate the services, CBH purchased 22 CBH class locomotives from MotivePower, Boise[18] and 574 grain wagons from Bradken, Xuzhou.[19][20]

Under the agreement, Watco was responsible for providing a comprehensive rail logistics planning service, including train planning and scheduling, tracking, maintenance, inventory control, and crew management.[21] Watco operated and maintained the rolling stock, with ownership remaining with CBH.

The services link various CBH grain collection points in the wheatbelt with CBH terminal and port facilities in Albany, Geraldton, Esperance and Kwinana.[22] CBH operate on the Arc Infrastructure managed open access network.[23]

Although the contract officially commenced on 1 May 2012, Watco operated its first service on 30 March 2012.[24][25][26] Because of a delay in the delivery of the rolling stock, QR National continued to operate some Template:RailGauge gauge services until October 2012,[27] while to operate standard gauge services, locomotives were hired from Chicago Freight Car Leasing Australia and SCT Logistics.[28] A further three locomotives were delivered in 2015 as compensation for late delivery of the original order.[29]

In October 2013, CBH referred an ongoing dispute with the network owner Brookfield Rail over track access prices and the state of the network to the Economic Regulation Authority.[30][31] In December 2017 CBH Group expanded its locomotive fleet purchasing 10 DB class locomotives from Aurizon.[32][33]

When next tendered, the contract was awarded to Aurizon for six years with an option to extend to 10 years. Aurizon introduced a further three sets of wagons to the 10 owned by CBH.[34][35] Although scheduled to transition in May 2022, all parties agreed to bring the handover date forward to September 2021.[36][37]

Tonnages

In 1999/2000 season CBH received a record amount of grain, 12.2 million tonnes in all, made up of 11 different grain types.[38]

CBH received a new record harvest of 14.7 million tonnes from grain growers in Western Australia during the 2003/2004 season.[39] This record was broken in 2013/14, with 15.8 million tonnes of grain handled by January 2014.[40][41]

New records were set in the 2016/17 season when the company received 16.6 million tonnes of grain. The company expected over $5 billion to have been pumped into the Western Australian economy as a result of the record harvest. A new record for the month of December was set with 831,000 tonnes of grain moved to port via rail. The highest monthly shipping record was also broken in January with 1.88 million tonnes shipped out. The previous monthly shipping record of 1.66 million tonnes had been set in February 2014.[42]

Harvest management

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File:Kwinana CBH.jpg
Kwinana silo in November 2006

Historically the CBH system had up to 300 receival points[43] – in most cases tied into the Western Australian Government Railways railway network, as the railway lines were the prime grain transport method.

By the 2000s, the number of receival points had been reduced to less than 200[1] and the locations of the receival points became part of a system of management zones:

Each zone is further broken down into areas.[44]

References

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  7. See also the history of Western Australian Farmers Federation that shows the relationship between the WAFF, CBH and Wesfarmers
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  10. a b Bidding underway for WA grain rail management Template:Webarchive Rail Express 11 November 2009
  11. Tender plans for rail future Template:Webarchive ABC News 18 November 2009
  12. Asciano in $700m grain bid Template:Webarchive The Australian 30 August 2010
  13. Locomotives roll off production line and wagons hit the WA shore Template:Webarchive CBH Group March 2012
  14. Major new investment in WA grains industry Template:Webarchive Agriculture & Food Minister 24 August 2012
  15. Watco wins CBH Group rail contract The Sunday Times 13 December 2010
  16. US group wins CBH contract from QR National Template:Webarchive The Australian 14 December 2010
  17. Watco wins CBH grain rail contract Template:Webarchive Rail Express 15 December 2010
  18. Script error: No such module "citation/CS1".
  19. New wagons hit the Western Australian shoreScript error: No such module "Unsubst". CBH Group 9 February 2012
  20. WA grain industry takes ownership of first rail fleet Template:Webarchive Rail Express 29 August 2012
  21. CBH, Watco mark anniversary of moving grain on rail Template:Webarchive World Grain 3 April 2013
  22. Receival Site Map Template:Webarchive CBH Group
  23. ERA to mediate CBH, Brookfield rail talks Template:Webarchive Business News 31 October 2013
  24. CBH, Watco rail agreement starts early Template:Webarchive World Grain 2 April 2012
  25. CBH grain wagons go to work early Template:Webarchive Farm Weekly 5 April 2012
  26. First train runs from Merredin Template:Webarchive Merredin-Wheatbelt Mercury 12 April 2012
  27. Annual Report June 2013 Template:Webarchive Aurizon
  28. Annual Report September 2012 Template:Webarchive CBH Group
  29. CBH pushes market limits Template:Webarchive The West Australian 23 December 2013
  30. CBH, Brookfield off to ERA Template:Webarchive Rail Express 6 November 2013
  31. Consultation Brookfield Rail Pty Ltd Floor and Ceiling Cost Determination Template:Webarchive Economic Regulation Authority 6 January 2014
  32. MotivePower Roundup Motive Power issue 115 January 2018 page 106
  33. Diesels expand CBH's loco fleet Farm Weekly 18 March 2018
  34. Aurizon and CBH sign long-term agreement for WA grain haulage Aurizon 6 August 2021
  35. CBH chooses Aurizon as rail services provider Rail Express 13 August 2021
  36. CBH seeks a rail new deal Farm Weekly 14 April 2021
  37. Grain contracts change hands in Western Australia The Railway Magazine issue 1447 October 2021 page 106
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  40. Grain growers CBH back to best after record WA harvest The Australian 23 January 2014
  41. Western Australian bulk handler and the nation's biggest grain exporter CBH Group posts a near-record Profit Template:Webarchive The Weekly Times 3 February 2014
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Further reading

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External links

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