Graincorp is making major changes to its rural grain storage and transport network that could result in 80 job losses.
The company will spend $200 million revamping its country network, cutting out smaller storage sites and improving its rail operations.
Inefficiency in the rail network, and its deteriorating condition, are unnecessarily increasing Graincorp’s costs and impacting returns to grain growers, the company said.
“GrainCorp’s investment will significantly improve our network’s interface with rail and help reduce rail costs by $5 per tonne,” executive chairman Don Taylor said in a statement today.
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But more money needs to be spent by governments on rail infrastructure, he added.
The grain handler’s network will also be trimmed, cutting out smaller storage facilities.
About 80 jobs are expected to be cut as a result of the restructure.
The staff affected by those changes will be redeployed in other areas where possible, and those left unemployed will receive their full entitlements, Graincorp said.
Most of the changes to the network are expected to be in place before this year’s winter crop is harvested.
