China is set to overtake Indonesia and South Korea to become the biggest buyer of Australian wheat. More than 2 million tons of wheat still in the field this season has already been sold to Chinese buyers. GrainCorp.’s chief executive Allison Watkins states that underinvestment in the country’s railways is forcing more grain to be transported by truck. When comparing loading the average vessel with 18 trains versus 900 trucks – this could mean the country losing its freight advantage. Over the next five years demand from China is expected to increase by 11 million tons and investment in infrastructure is being urged to keep costs within the supply chain down.
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