neil johns, graincorp: improving the efficiency of grain logistics at bulk and container ports
DESCRIPTION
Neil Johns, General Manager Ports, GrainCorp delivered this presentation at the 2013 Regional Ports Conference. The event showcased the latest port developments and assessed the policy, planning and operating strategies designed to maximise the efficiency of Australia's regional ports: gateways for facilitating trade, engagement and regional growth. Featuring local and national case studies, the two day event provided a spotlight on port developments across the country, highlighting the infrastructure, investment and long-term planning necessary to meet Australia’s current and potential competitiveness. For more information on the annual event, please visit the conference website: https://www.informa.com.au/regionalportsconferenceTRANSCRIPT
Neil Johns, 20 November 2013
Improving efficiency at Bulk Grain Ports
Grain underpins global food
- 2 -
Wheat Barley Soybean Pulses Corn Canola
Cereal Foods & Beverages
Industrial Starch, Biofuels Edible
Oils
Animal Protein Beef, Poultry & Eggs,
Pork, Dairy, Fish
Grain processing
Food Products
Malting Ethanol Oil crushing Feed Milling
Sorghum
Grain supplies 60% of global calories
45% 55%
‘Food Security’ will drive trade
- 3 -
Grain Demand
Traded Grain
Population
Grain growth drivers to 2050
35% 50% 100%
45
11 9 16 1 20
27
44
23 12
14
-1
3
16
ME/North Africa Sub-SaharanAfrica
Sub-Continent Asia (ex.China) China Latin America Developed
+98%
+200% +140%+90%
+14%
+57%
Wheat Imports Growth to 2050MMt
Grain growth is on our doorstep
MENA
Sub-Saharan Africa
Asia
Sub-Saharan Africa
Asia (ex-China)
45% 76% 7% 100% 1% 57% 10%
Imports % of consumption
Sources: USDA, US Wheat Associates - 4 -
Middle East North Africa
World Wheat Imports Growth to 2050
Australia’s leading grain business
- 5 -
GrainCorp is Australia’s leading grain business with the largest network in eastern Australia
– 7 bulk grain ports ~16mmt elevation capacity handling ~85% of bulk exports
– 280 silos with~20mmt country storage capacity handling~55% production
– 2 port container facilities ~0.5mmt packing capacity
– 2 non grain bulk ports
– Manages 15+ trains handling ~60% of export grain rail transport
Country Storage Rail/Road Port Elevators
tonnes of storage
40m
~18m
Crop average
Port average
CAPACITY
utilisation
~35%
1. Grain constraint: Rail transport
- 7 -
Port capacity is not a constraint
0%
20%
40%
60%
80%
100%
-
2
4
6
8
10
12
14
16
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MM
T
GrainCorp Bulk Exports Excess Capacity Average Utilisation
Port utilisation ranges from 5% to 65%
- 8 -
Major constraint is rail transport
RAIL
RAIL
ROAD
ROAD
0%
20%
40%
60%
80%
100%
2004 2013
Use of rail transport has fallen from 90% to 60%
9
Contract flexibility
Capacity flexibility
Pricing flexibility
One size fits all
First in first served
Reference prices
2. Grain constraint: Regulation
- 10 -
Port regulation not required
0
3
6
9
12
0
3
6
9
12
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MM
T
MM
T
GNC Bulk Exports Containers Non GNC Bulk Exports
Non-GNC grain exports increased 3 fold in past 10 years
QBT
Port regulation applied unevenly
11
Mackay
Gladstone
Brisbane
Newcastle
Port Kembla
Geelong
Portland
NAT
Louis Dreyfus
Melbourne (Emerald)
Regulated Non-regulated
Containers
Containers
Containers
Containers
Thank you & Questions