Eyre Peninsula Grain Export Supply Chain Planning Study

We have completed a planning study to identify the most effective and sustainable export grain supply chain for the Eyre Peninsula. The study assessed all future investment and expansion options, including the potential full or partial re‑opening of the Eyre Peninsula rail network. Before its closure in 2019, the rail system moved around 750,000 tonnes of grain to Port Lincoln each year — roughly 30% of the region’s average 2.5‑million‑tonne crop.

Outcomes of the planning study will be used to identify options to deliver an optimal grain export supply chain solution, looking at positive outcomes for both growers and communities, including changes and impacts on State and Local Government roads.

The planning study was jointly funded by the South Australian Government and the Eyre Peninsula Local Government Association on a 75:25 basis. Building on this work, we developed options to deliver the most effective grain export supply chain for the region. The study focused on achieving positive outcomes for growers and communities, including assessing impacts and potential changes to both State and Local Government road networks.

About the study

Following changes in the export grain industry and the shift away from grower‑based traders and bulk handlers, several new grain port proposals have emerged in South Australia, particularly on the Eyre Peninsula. Lucky Bay Port near Cowell opened in 2020, while proposed direct‑loading facilities at Cape Hardy and Port Spencer have not yet secured investment.

The rail freight network was upgraded in 2006 through joint industry and government funding, supported in part by a grower levy. However, the 2016 Eyre Peninsula Freight Study found that rail was no longer commercially viable for grain. Rail haulage ended in 2019, shifting all grain transport onto roads and increasing pressure on local road networks and Port Lincoln. Councils have raised concerns about higher freight volumes and the resulting road maintenance impacts. Proposed new ports on the lower Eyre Peninsula have added to these concerns, as many connecting council roads remain unsealed. These issues are closely tied to future decisions about port, road and rail investment.

In 2023, Aurizon and Viterra (now Bunge) prepared a business case to redevelop the rail‑based supply chain, including new grain loading and discharge facilities. Submitted to both the Australian and South Australian Governments, the proposal aims to improve supply chain efficiency and increase grower returns. It would lift annual rail grain volumes to Port Lincoln from around 700,000 tonnes to approximately 1.2 million tonnes.

Study scope and outcomes

The study focused on the grain supply chain from farm to local storage, considering grower needs such as harvest logistics, market conditions, product quality, and segregation, with some consideration of the impacts of multiple handling.

The study:

Developed an effective and practical export grain supply chain by examining different transportation methods and network configurations.
Reviewed bulk grain logistics across the Eyre Peninsula, including access to Port Lincoln, Thevenard and Lucky Bay.
Considered grower and community outcomes, including heavy vehicle traffic, impacts on council roads, and effects on regional communities.

Overall, the study identified an optimal export grain supply chain and noted that some solutions could support other commodities in the future.

Community engagement

We sought feedback on current freight movements, future investment needs, and the implications of rail on existing and planned investments, including those not rail‑related. We also gathered views on impacts to local east–west road networks, particularly considering proposed new ports on the lower Eyre Peninsula.

Read the What We Heard for further details about this consultation.

Next Steps

The Planning Study, which was informed by consultation with Eyre Peninsula councils, bulk handlers, port operators and key industry stakeholders, has been completed and will now be submitted to Government.

Outcomes will guide further transport planning as well as inform future Government funding and investment decisions.