A recent round of funding for a rail line extension at Albany Port in Western Australia could allow it to take advantage of emerging timber markets in India. Source: ABC Rural
The port received $2.5 million in Royalties for Regions funding, for a loop line into the port rail system.
The current rail line is a one-way a push and pull system and the extension will open up areas of the port which have not previously been accessed by rail.
Port CEO Brad Williamson said the extension would boost trade for grain exporters, and also for a growing timber market.
He said that there was growing interest in exporting logs to India.
“That trade is starting to get quite serious and I think we’ll get one, or maybe two log exporters from the port,” he said.
WA Plantation Resources chief operating officer Ian Telfer said the WA timber industry has identified India as an emerging market, which will grow over the next five years.
Mr Telfer said the timber industry would need to increase the amount of land it leases from WA farmers and landholders to match the capacity.
He said he was confident the demand for timber exists, but it will be ‘at least a five year timeline’ before exports will begin in earnest.
“They have some very old pulp mill technology that is using domestic supply of wood,” he said.
“To meet the demand of paper based goods they are installing new capacity, which requires a different fibre.”
Mr Telfer said paper goods would need a eucalypt-based fibre, which is grown in southwest WA.
He said demand would grow in Australia’s longest-serving export market, Japan, as well as a newer market in China and emerging Indian markets.
