Dairy Exports: Fonterra Warms To KiwiRail For Milk Movements
February 24th, 2010
Fonterra and KiwiRail are yet to hold formal talks on any serious expansion of rail freight from its South Island plants but the potential for bulk milk haulage is clear. Gary Romano, managing director for Fonterra Trade and Operations, floated the idea of a “milk train” potentially providing a more efficient link between Edendale and a wider milk catchment. Potential routes would include Oamaru to Edendale (near Invercargill) and Sterling to Otautau, giving Fonterra access to dairying areas in north and south Otago.
Fonterra is already leaning more heavily on KiwiRail since announcing it is cutting back on the number of ports it uses and trimming its key supply routes. The ability of KiwiRail to win more business may come down to the efforts of CEO Jim Quinn since his appointment in March 2009. Romano says Quinn has brought “a totally refreshing commercial perspective on life.”
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The commissioning of the ED4 drier at Edendale, the biggest such plant in the world, is already providing spin-off benefits to KiwiRail, which has added a return train between Dunedin and Edendale. Fonterra has an inland port development at Mosgiel on the old Fisher & Paykel Appliances site. KiwiRail says additional product from Edendale will be added to existing services.
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