Panel Delivery – Potential Rail Users Cubbie Ag perspective.

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Cubbie Ag’s cotton related freight requirements count for 42% of the Balonne Shire’s cotton related freight movement.

Transcript of Panel Delivery – Potential Rail Users Cubbie Ag perspective.

Panel Delivery Potential Rail Users Cubbie Ag perspective Cubbie Ags cotton related freight requirements count for 42% of the Balonne Shires cotton related freight movement. Commodity/inputVolume/annumTruck trailers required to move volume of commodity Cotton (lint) 150,000 MT6,000 Cotton seed 175,000 MT7,000 Inputs fertiliser 60,000 MT2,400 Inputs liquid chemical 990,000 litres50 Diesel 17,500,000 litres700 TOTAL Cotton 16,150 trailers (25MT) Balonne Shire freight movement via the current road corridor Note: These freight numbers are based on full production, as we know production will vary due to seasonal influences. In my opinion it would be reasonable to assume an average production number of approximately 60-70% of total production. Current production over the past 15 years the cotton industry has seen the introduction of genetically modified cotton and improved cotton plant varieties thanks to our industrys researchers, the industry has seen an increase of 46% of cotton lint produced per hectare over this period Future production I envisage the cotton lint yield will continue to improve at a similar rate as occurred over the 15 year to date I also envisage that enhanced water efficiency measures will be introduced and this will increase production from a greater area Competition to markets Recently cotton industry representatives and individual growers have worked hard to establish critical offtake agreements with overseas end users. Timely, efficient delivery has allowed the Australian cotton industry to be acknowledged as a significant reliable deliverer of cotton lint and cotton seed. There is no question this reliable delivery puts the Australian cotton industry in good stead when competing against other countries. Simply we cannot afford deterioration of the current delivery position or our offtake agreements will be put in jeopardy. Summary Cotton lint, cotton seed and a number of cropping inputs presents a real freight opportunity to increase demand, usage and volumes for agricultural rail freight services from the Balonne Shire. An opportunity also exists for a modern upland intermodal freight hub / warehousing facility to be constructed in the Balonne Shire, this will help manage a smooth commodity passage through to our key markets. This type of facility has the potential to attract private enterprise investment.