you must realize, that there are two terminals at Port Kembla and Newcastle, Graincorp have one in each, and the other are operated respectively by Quattro at Port Kembla, and NAT at Newcastle.
Whilst both graincorp terminals are by far the largest in capacity - approx 20% of the port kembla terminal is being converted to cement. Whilst at Newcastle, the original 4 shiploaders is now down to three, of which in general use, only two operate at a time.
This means that the throughput (loading rate) at both graincorp terminals has gone down from max rate of 4800 mth (metric tonnes hours) to around 3000 mth - also due to to 'upgrades to more automated systems - which appear not to be too great) - This is PK.
Newcastle is down from original nominal rate of 2400 mt /h to around 1800 mt/h (max)
This reduction of ability to move grain through the ports has an inevitable consequence of shutting out storage. This slack is being taken up by the alternate operators in both ports.....i believe that Geelong has a similar scenario.
So whilst this will allow the export season to be prolonged, you have to consider that by june/july, the majority of hard wheat from the east coast will be diverted to W.A. as has happened in the past.
Saying all of this, GrainCorp shares are still seriously undervalued, due to the company's marketing capability.
GNC Price at posting:
$5.18 Sentiment: Buy Disclosure: Held
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