AWB, GrainCorp Jointly Manage Transportation

SYDNEY - Jun 28/04 - SNS -- The Australian wheat board, AWB Limited (AWB), and GrainCorp Limited (GrainCorp) have created a joint venture company to handle grain export logistics on the east coast of Australia.

To be incorporated and jointly owned by AWB and GrainCorp, the new company will provide export logistics services to the two companies and will consist of a small number of expert staff based separately from the operations of its parent companies.

The new company will not be involved either company’s activities for domestic grain, or their competitive position on up-country grain storage and handling.

Under the terms of joint venture agreement, the new company:

Will contract with AWB and GrainCorp to manage and co-ordinate supply chain activities in Eastern Australia in relation to their export grains;

It will enter into contracts for receival, storage & handling and rail services with all service providers and other entities to provide an integrated storage and transport service for AWB and GrainCorp export grain businesses; and

It will operate in a neutral and independent manner, keeping each party’s confidential information ring-fenced from the other party.