Viterra buys grain facilities and ship loader in Australia from Cargill

Viterra has entered into an agreement to purchase five warehousing and transfer yards and a mobile ship loader in South Australia and Western Victoria from Cargill.

The five Cargill GrainFlow facilities are located in Maitland, Crystal Brook, Mullally, Pinnar and Dimbula. The mobile ship loader is located in Port Adelaide, writes APC-Inform.

Financial terms of the deal were not disclosed. The deal must also be approved by the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

Viterra said the increased site network would result in a 15% reduction in freight rates at Mallala, Crystal Brook and Pinnar. A 25% reduction in freight rates is also expected in Dimboola and Maitland.

“We are investing around A$25 million in these facilities over the first two years and will continue to invest A$8 million annually to support performance and improve delivery times where needed. This is in addition to the $75 million we currently invest in our network each year,” said Viterra CEO Philip Hughes.

The deal is part of Viterra’s wider plan to improve the efficiency of the grain supply chain in South Australia to better compete with interstate and international suppliers from the Black Sea region, South America, as well as Canada and the US, he said.

Read also: The EU approved the agreement on the merger of Bunge and Viterra for $34 billion.