AWB has announced a new rail freight agreement with El Zorro and the commissioning of 84 new rail wagons to ensure that grain delivered to AWB GrainFlow on the east coast of Australia continues to go on rail as is commercially feasible.

AWB managing director Gordon Davis said today that the agreement with El Zorro provides the use of four trains for moving grain from AWB network storage and handling sites in Victoria and New South Wales and other bulk handling country grain storages.

"In addition, the new contract will also include the use of 84 new rail wagons the company has commissioned which demonstrates our ongoing commitment to ensure that AWB invests in strategic assets that support our ability to provide solutions to growers and endues customers from the east coast of Australia," Mr Davis said.

"The new rail freight agreement with El Zorro, a specialist rail freight operator, will ensure AWB can continue to provide its customers with an integrated storage, handling and freight service."

El Zorro business manager Geoff Tighe said that the new agreement with AWB builds on a successful partnership and provided an opportunity for El Zorro to broaden its footprint in the rail industry.

"It provides us with another platform to become the preferred rail carrier for customers seeking reliable and high-quality service," Mr Tighe said.

"Agreements like this ensure there is strong competition in the rail freight market which will ultimately benefit our customers and grain growers."

The new wagons will be delivered early in the New Year and will be built to run on standard gauge rail track, but they can be converted to broad gauge if required.