Grain handler GrainCorp Ltd
(ASX:GNC) has reduced its rail freight rates for the 2010/2011 year.
The company says across the 197 GrainCorp sites served by rail, the average freight rate per tonne has been reduced by 2%.
For more than 100 sites, the company says it has reduced rail rates by an average of $2.40 a tonne, or over 6%.
GrainCorp says road rates will be subject to variation if the price of fuel increases above the company’s forward estimates, or if demand for trucks outstrips supply at critical times.
Last year the company started to bid site-based, rather than ‘at-port’, prices to growers at its sites and says this practice will continue for the 2010/2011 harvest.
GrainCorp pulled itself out of the red to earn $63.16 million in profit for the 12 months to September 30, 2009.
