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The Australian Wheat Board (AWB) has announced a five-year deal for bulk grain haulage with freight train operator El Zorro, hoping the proposed expansion of rail services would attract government funding.
The two companies have also agreed on operating 84 new rail wagons to ensure commercial viability of the freight service in Victoria and New South Wales, especially on the Benalla-Oaklands line.
“The government now needs to commit to upgrading the Benalla-Oaklands line as part of its overall plan to standardise tracks in the north-east,” AWB spokesman Peter McBride told the ABC
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He said the Victorian Government should acknowledge the importance of the line that the grain industry largely relies on.
"I think what this does show to the government is that we are committed to put grain on rail and hopefully that strengthens our position when we're talking to the Victorian Government,” he said.
The agreement also involves the use of four trains for transporting grain from bulk handling and storage sites.
El Zorro business manager Geoff Tighe said the new contract would provide the company with an opportunity to expand its activities in the rail sector.
“It provides us with another platform to become the preferred rail carrier for customers seeking reliable and high-quality service," Mr Tighe told Stock & Land.
"Agreements like this ensure there is strong competition in the rail freight market which will ultimately benefit our customers and grain growers."
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