Industry Agriculture Founded 5 April 1933 Number of employees 1,200 | Area served Western Australia Headquarters West Perth Type Cooperative | |
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Key people Andrew Crane (CEO)
Neil Wandel (Chairman) Products Grain marketing, logistics Revenue $3.72 billion (September 2015) Profit $82.7 million (September 2015) Net income 82.7 million USD (September 2015) Subsidiaries Pt Eastern Pearl Flour Mills | ||
Cbh group overview
The CBH Group (commonly known as CBH, an acronym for Co-operative Bulk Handling), is a grain growers' cooperative that handles, markets and processes grain from the wheatbelt of Western Australia. CBH has a permanent staff of around 1,200 and annual revenue of $3.72 billion.
Contents
Harvest casuals at the cbh group
History
CBH was formed on 5 April 1933, at a time when a royal commission on bulk handling of grain was in progress, and after over 20 years of failed proposals for bulk handling of grain in Western Australia.
The trustees of the Wheat Board of Western Australia and Wesfarmers registered the company together with capital of £100,000 divided evenly into 100,000 shares. The cooperative was formed under the principle of one person, one vote, regardless of the amount of grain supplied.
CBH merged with the Grain Pool of WA in November 2002, after the Parliament of Western Australia passed legislation allowing the merger to go ahead.
In 2016 the Australian Taxation Office revealed that despite generating more than $3.4 billion in revenue in 2013-14, the company had paid no tax. This made it Australia's biggest revenue earner not to pay tax in the period under review.
Transport
During the early years most grain movement was by rail over the Western Australian Government Railways network, with sidings and branch lines specifically serving wheat growing areas. Many of the branch lines and rail facilities have not been updated or maintained, with road transport increasing in many areas.
In 2009, CBH decided to put its rail grain haulage services out to tender for the first time. It aimed that the amount of grain transported by rail rise from 50% to 70%. CBH settled on a business model that saw it invest in new locomotives and grain wagons, with day-to-day operations contracted out.
In December 2010, CBH awarded Watco WA Rail a ten-year contract to operate services in the south of Western Australia. To operate the services, CBH purchased 22 CBH class locomotives from MotivePower, Boise and 574 grain wagons from Bradken, Xuzhou.
Under the agreement, Watco is responsible for providing a comprehensive rail logistics planning service, including train planning and scheduling, tracking, maintenance, inventory control and crew management. Watco operates and maintains the rolling stock, with ownership remaining with CBH.
The services link various CBH grain collection points in the wheatbelt with CBH terminal and port facilities in Albany, Geraldton and Kwinana. CBH operate on the Brookfield Rail managed open access network.
Although the contract officially commenced on 1 May 2012, Watco operated its first service on 30 March 2012. Because of a delay in the delivery of the rolling stock, QR National continued to operate some 3 ft 6 in (1,067 mm) gauge services until October 2012, while to operate standard gauge services, locomotives were hired from Chicago Freight Car Leasing Australia and SCT Logistics. A further three locomotives will be delivered in 2015 as compensation for late delivery of the original order.
In October 2013, CBH referred an ongoing dispute with the network owner Brookfield Rail over track access prices and the state of the network to the Economic Regulation Authority.
Tonnages
In 1999/2000 season CBH received a record amount of grain, 12.2 million tonnes in all, made up of 11 different grain types.
CBH received a new record harvest of 14.7 million tonnes from grain growers in Western Australia during the 2003/2004 season. This record was broken in 2013/14, with 15.8 million tonnes of grain handled by January 2014.
New records were set in the 2016/2017 season when the company received 16.6 million tonnes of grain. The company expected over A$5 billion to have been pumped into the Western Australian economy as a result of the record harvest. A new record for the month of December was set with 831,000 tonnes of grain moved to port via rail. The highest monthly shipping record was also broken in January with 1.88 million tonnes shipped out. The previous monthly shipping record of 1.66 million tonnes had been set in February 2014.
Harvest management
See also CBH grain receival points
Historically the CBH system had up to 300 receival points – in most cases tied into the Western Australian Government Railways railway network, as the railway lines were the prime grain transport method.
By the 2000s, the number of receival points had been reduced to less than 200 and the locations of the receival points became part of a system of management zones:
Each zone is further broken down into areas.