Large-scale contract harvesting trials, where cane supply can be more efficient, were undertaken in Penang Mill for the first time this season. Five units operated under this system and although the achievement was not as expected, the results showed savings ranging from $1/tonne in Malau sector to $3/tonne in Ellington II sector. Harvest efficiency is expected to greatly increase once the contract harvesting is implemented at all mills. In a joint effort, the council and Corporation will pursue this concept under the SCOF sub-committee on harvesting and transport.

The aging rail transport fleet and its infrastructure continue to affect the efficiency of rail cane delivery to the factory. During the year, 793,375 tonnes of rail cane was delivered by Lorries through conversions, an increase of 39% over the previous session.

Due to increase in conversion the number of cane on road is increased causing traffic congestion, and the strain of foreign exchange reserve is adversely affecting the whole economy. In view of this, FSC has been asked by the government to progressively reverse the rail growers using lorry mode transportation to rail proper and the Corporation has provided commitment to the government that by year 2010 49% of the total crop will be delivered to mills via rail network.

The age profile of the locomotive fleet is between 20 years and 40 years. The cane trucks are of various types and ages. Furthermore, due to lack of investment, the condition of track is generally poor. The Corporation is considering strategies such as progressive upgrade of locomotive components selective maintenance on cane trucks, track bridges and road crossings.