CBH Group

CBH Group, commonly known as CBH, is a farmer-owned cooperative and one of the central organisations in Western Australia's grain industry. Its name derives from Co-operative Bulk Handling, reflecting the business's original purpose: developing and operating bulk systems for receiving and moving grain produced across the state's Wheatbelt. CBH operates the great majority of cereal-grain receival facilities in Western Australia and connects farms with storage sites, rail and road logistics, port terminals, processors and overseas customers. The organisation was established on 5 April 1933 after more than two decades of unsuccessful proposals for bulk grain handling in Western Australia. Its formation occurred while a royal commission was examining the subject. The trustees of the Wheat Board of Western Australia and Wesfarmers registered the company with capital of £100,000, divided equally into 100,000 shares. From the beginning, the cooperative used a one-member, one-vote principle rather than allocating control according to the volume of grain supplied. That governance model remains central to CBH's identity as an organisation owned by growers rather than public shareholders. CBH's operating system covers multiple stages of the grain supply chain. Grain is delivered to receival points located throughout farming districts, where it is assessed, handled and placed into storage. From there, CBH coordinates movement to export terminals and other destinations through road and rail networks. The organisation also manages grain marketing and has activities connected with processing and value-added agricultural products. Its principal commodities include wheat and other cereal grains, with the mix varying by harvest and growing region. The cooperative's network historically relied heavily on Western Australian Government Railways branch lines and sidings. As some rail infrastructure aged and road transport expanded, CBH changed its logistics model. In 2009 it began putting rail grain haulage services out to tender, while retaining ownership of locomotives and wagons and contracting day-to-day operations to specialist rail companies. Watco Australia began operating services under a ten-year arrangement in the early 2010s, and Aurizon later assumed the operating contract. Rail services connect inland collection points with CBH facilities and export terminals at Albany, Geraldton, Esperance and Kwinana. CBH expanded its scale through the 2002 merger with Grain Pool, enabled by legislation passed by the Parliament of Western Australia. Grain volumes have fluctuated with seasonal conditions, but the cooperative has recorded several major intake and shipping records. Its network received 12.2 million tonnes in the 1999-2000 season, 14.7 million tonnes in 2003-04 and 15.8 million tonnes by January of the 2013-14 season. In 2016-17, receipts reached 16.6 million tonnes, accompanied by notable monthly rail movement and shipping records. CBH's economic role extends beyond grain handling. Its facilities and logistics activities support farming communities, transport operators, regional employment and Western Australia's export infrastructure. At the same time, the organisation has faced scrutiny over access to rail infrastructure and taxation. In 2013 it referred a dispute with the network owner then known as Brookfield Rail to the Economic Regulation Authority over access prices and network condition. In 2016, Australian Taxation Office data reported that CBH had generated more than $3.4 billion in revenue in 2013-14 while paying no tax, making it the country's largest revenue earner in that data set without a tax payment. CBH remains an active cooperative focused on grain supply-chain infrastructure, grower services and domestic and international marketing.

CBH Group was created on 5 April 1933 during a period of sustained debate about how Western Australia should handle and transport bulk grain. More than twenty years of proposals had failed to produce a comprehensive system, while a royal commission was examining the issue. The trustees of the Wheat Board of Western Australia and Wesfarmers registered the new organisation with capital of £100,000 divided into 100,000 shares. Its cooperative constitution gave each member one vote, regardless of the quantity of grain supplied, establishing a grower-oriented governance structure. CBH developed a network of receival points across the Wheatbelt, historically placing many facilities beside railway sidings and branch lines operated by the Western Australian Government Railways. These sites allowed grain to be aggregated in bulk and moved efficiently toward storage and export terminals. Over time, the number of receival points fell from a historical high of about 300 to fewer than 200, and the system became organised into Albany, Esperance, Geraldton and Kwinana zones, each divided into smaller operating areas. The cooperative grew alongside Western Australia's grain production. It received 12.2 million tonnes in the 1999-2000 season and 14.7 million tonnes in 2003-04. CBH merged with Grain Pool in November 2002 after Western Australian legislation authorised the combination. The merger strengthened the organisation's role in grain handling and marketing and consolidated important parts of the state's grain supply chain. Rail logistics became a major strategic issue as some branch lines and railway facilities deteriorated and road haulage gained importance. In 2009, CBH decided to tender its rail-grain operations, with an objective of increasing the share of grain moved by rail from approximately half to about 70 percent. Rather than outsource ownership of the fleet, CBH adopted a model in which it purchased locomotives and wagons and contracted specialist operators to plan and run services. In December 2010, Watco Australia won a ten-year operating contract for southern Western Australia. CBH bought 22 locomotives and 574 grain wagons for the arrangement. Watco was responsible for planning, scheduling, tracking, maintenance coordination, inventory control and crew management, while CBH retained ownership of the rolling stock. The first Watco service ran on 30 March 2012, ahead of the contract's formal commencement on 1 May. Delays in rolling-stock delivery meant that QR National continued some narrow-gauge services until October 2012, while locomotives were temporarily hired for standard-gauge work. Three additional locomotives were delivered in 2015 as compensation for delays. CBH connected inland receival facilities with terminal and port locations at Albany, Geraldton, Esperance and Kwinana over the open-access network managed by Arc Infrastructure. In 2013, CBH referred a dispute with Brookfield Rail concerning track-access prices and the condition of the rail network to the Economic Regulation Authority. The cooperative later expanded its locomotive resources by buying ten DB-class locomotives from Aurizon in 2017. When the rail contract was next tendered, Aurizon won a six-year agreement with an option for extension. Aurizon added wagon sets to the ten sets owned by CBH and began operating the services in September 2021, several months earlier than the planned May 2022 handover. Production growth produced further records. CBH handled 15.8 million tonnes by January of the 2013-14 season, and receipts reached 16.6 million tonnes in 2016-17. That latter season also produced records for December rail movements to port and January shipping volumes. The scale of the harvest was associated with an estimated contribution of more than $5 billion to the Western Australian economy. CBH has also attracted public scrutiny. In 2016, Australian Taxation Office data indicated that the cooperative had generated more than $3.4 billion in 2013-14 revenue while paying no tax. The disclosure made CBH Australia's largest revenue earner in the relevant data set with no tax payment. Despite such scrutiny and continuing infrastructure challenges, CBH remains an active farmer-owned organisation whose core activities span receival, storage, transport, processing and marketing of grain.

1. 2021Aurizon assumes rail operations

   Aurizon took over the contracted operation of CBH rail services after the transition was advanced to September 2021.

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2. 2017Locomotive fleet expanded

   CBH purchased ten DB-class locomotives from Aurizon.

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3. 2016Large harvest and tax scrutiny

   The 2016-17 season produced record receipts of 16.6 million tonnes, while tax data released the same year drew public scrutiny of CBH's tax position.

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4. 2013Rail-access dispute referred to regulator

   CBH referred a dispute about access pricing and rail-network condition to the Economic Regulation Authority.

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5. 2010Watco rail contract awarded

   Watco Australia was selected to operate CBH rail services in southern Western Australia under a ten-year contract.

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6. 2009Rail operations put to tender

   CBH began restructuring its rail-haulage model and sought external operators while retaining ownership of key rolling stock.

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7. 2002Grain Pool merger

   CBH merged with Grain Pool after Western Australian legislation enabled the transaction.

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8. 1999Record seasonal grain intake

   CBH received 12.2 million tonnes of grain during the 1999-2000 season across eleven grain types.

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9. 1933CBH is established

   Co-operative Bulk Handling was registered on 5 April by the Wheat Board of Western Australia trustees and Wesfarmers, using a one-member, one-vote cooperative structure.

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A farmer-owned, vertically integrated grain supply-chain cooperative serving Western Australian growers and connecting the Wheatbelt with domestic and global markets.

• Bulk grain receival and storageAgricultural logistics1933

  CBH operates a large network of receival points across Western Australia's Wheatbelt. Growers deliver harvested grain to these facilities, where it is assessed, handled and placed into storage before movement to domestic users, processors or export terminals.

• Grain transport and rail logisticsFreight and supply-chain services

  CBH coordinates the movement of grain from inland receival sites to ports and other destinations using road and rail. Its rail model has included CBH-owned locomotives and wagons operated by contracted rail companies, linking the Wheatbelt with Albany, Geraldton, Esperance and Kwinana.

• Grain marketingAgricultural commodities

  As part of its integrated grain business, CBH markets grain produced by Western Australian growers into domestic and international channels. Marketing operates alongside storage, logistics and export infrastructure rather than as a standalone consumer brand.

• Grain processingFood and agricultural processing

  CBH has activities in processing grain and related agricultural products, extending the cooperative's role beyond receiving and transporting raw commodities. Specific branded consumer product lines are not identified in the supplied reference material.

• 2021Transition rail operations to AurizonStrategy

  A new rail operating contract was tendered after the Watco arrangement.

  What changed. CBH awarded Aurizon a six-year operating contract with an option to extend, and the parties brought the handover forward to September 2021.

  Aftermath. Aurizon became responsible for operating the services and introduced additional wagon sets alongside CBH-owned equipment.

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• 2017Expand the locomotive fleetStrategy

  CBH continued to develop its rail-based grain logistics capacity under a model retaining ownership of rolling stock.

  What changed. CBH purchased ten DB-class locomotives from Aurizon.

  Aftermath. The purchase increased the cooperative's available locomotive resources before the subsequent change in contracted rail operator.

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• 2009Change the rail operating modelStrategy

  CBH sought to increase the proportion of grain moved by rail while responding to changing conditions in Western Australia's rail network.

  What changed. The cooperative put rail grain-haulage services out to tender and chose to own locomotives and wagons while contracting operational responsibilities to specialist providers.

  Aftermath. Watco Australia became the initial contracted operator, followed later by Aurizon.

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• 2002Merge with Grain PoolM&A

  Western Australian grain handling and marketing activities were being consolidated, and legislation was required to permit the combination.

  What changed. CBH merged with Grain Pool in November 2002 after the Parliament of Western Australia passed enabling legislation.

  Aftermath. The merger expanded CBH's role across the state's grain supply chain.

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• 2016Tax-payment scrutinyControversy

  Australian Taxation Office data reported that CBH generated more than $3.4 billion in revenue during 2013-14 while paying no tax. The disclosure attracted public attention because CBH was identified as Australia's largest revenue earner without a tax payment in the relevant data set.

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• 2021Aurizon takes over CBH rail operating contract

  Aurizon became the contracted rail operator for CBH after the parties brought the transition forward from the originally scheduled 2022 date.

  Leadership change
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• 2017CBH expands locomotive fleet with Aurizon locomotives

  CBH purchased ten DB-class locomotives from Aurizon as part of the cooperative's rail-freight strategy.

  Other
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• 2013CBH refers rail-access dispute to economic regulator

  CBH referred an ongoing dispute with Brookfield Rail concerning track-access prices and network condition to the Economic Regulation Authority.

  RegulationLawsuit
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• 2010Watco Australia selected to operate CBH rail services

  CBH awarded Watco Australia a ten-year contract covering rail operations in southern Western Australia.

  Other
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• 2009CBH tenders rail grain-haulage operations

  CBH decided to put its rail grain-haulage services out to tender and pursued a model in which it owned rolling stock while specialist operators handled operations.

  Other
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• 2002CBH merges with Grain Pool after Western Australian legislative approval

  CBH Group completed a merger with Grain Pool after legislation passed by the Parliament of Western Australia enabled the transaction.

  M&A
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1. CBH Group