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Competition in West Australia’s grain handling heats up amid new logistics, expansion

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Consistently rising wheat output in Australia is creating export opportunities for new entrants, particularly in the grain handling space in the Western region, where the desire for more flexible loading options is driving demand for mobile shiploaders and supporting logistics expansion.

Wheat production in the 2025-26 marketing year (October to September) is currently projected between 33 million-34 million mt, according to trade participants, nearly 27% higher than the 10-year average, based on data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

“Crop is going to be very big, especially if we have more rain in September,” said a trade source based in Western Australia.

“Think 12 million mt of wheat is possible for production [in Western Australia],” said another Perth-based grains trader.

For Australia — which exports at least 70% of its wheat production annually except in drought-stricken years — getting a big crop to the export market is a process fine-tuned by years of expertise in grain accumulation, logistics, shipping slots, and marketing, among other things.

Still, the efficiency of wheat exports is highly subject to a factor beyond exporters – the distribution of wheat grades and crop protein levels in different port zones, which can differ substantially depending on the weather.

“Probably around half of the total export capacity across all Australian bulk ports is in long-term agreements [LTAs], but that figure is different when considering useful export capacity. Many port zones do not have sufficient grain at the right time to maximize their export capacity, and inland logistics can be complicated. This basically makes it more complicated to plan exports out of good ports with enough volumes of wheat grades they [exporters] require,” according to a Victoria-based grains exporter.

These issues have led to a gradual shift in the export market landscape, namely the rising relevance of mobile loaders in Western Australia.

While it was always a mature market in Victoria and Queensland, accounting for varying port capacities along the East Coast, it was far less common in Western Australia due to low loading costs and sufficient capacity at CBH loading facilities. However, with loading costs rising over the years, as well as unforeseen delays and reduced flexibility on loading periods, more and more exporters are turning to mobile loaders in Western Australia, with at least three loaders currently in operation in the state, said the same source.

Logistics firm Qube also recently announced a planned expansion into Western Australia’s grain handling and export space in its FY25 report released Aug. 21, after its grain throughput across the existing East Coast export terminals more than doubled in the financial year to 3.08 million mt.

Qube had earlier completed the acquisitions of Melbourne International RoRo & Auto Terminal (MIRRAT) in May and a new agri storage and handling facility adjacent to its existing facility in Narrabri, strengthening its existing network on the East Coast.

The company’s expansion in Western Australia entails a bulk grain ship loading facility at the Port of Albany, which has a rail connection and was used for woodchips exports, said a containerized grain exporter based in Australia.

However, further upgrades are needed before the port is ready to load and export grain, according to the same source, who does not expect the port to be ready in time for the MY25-26 winter crop harvest.

Besides Qube, other market participants are also looking to expand their footprint in Western Australia. Fremantle-based exporter Premium Grain Handlers is building a site in Kojonup that will store oats, wheat and barley, a company source told Platts, part of S&P Global Commodity Insights.

“More players are entering the export market supply chain, and I think that is always good news for the market in the long run, to drive more efficiency in processes and create further value for the growers,” said a Perth-based grains broker.

Platts assessed Australian Premium White and Australian Standard White FOB Australia at $/mt and $/mt on Aug. 26, respectively, both unchanged day over day.
Source: Platts

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