-
Posted by Allen Newton
- |
-
21 June, 2026
A SUBCONTRACTOR on CBH Group’s Broomehill rapid‑rail and outloading facility has launched Supreme Court action against rail contractor Martinus Rail, alleging more than $2 million remains unpaid under a settlement agreement reached late last year.
According to WA publication Business News, Pacific Industrial Company has filed a writ in the Supreme Court of Western Australia claiming Martinus failed to pay the final instalment of a $4.8 million settlement relating to works carried out on CBH’s Broomehill project. The payment, worth about $2 million, was due on 25 March.
The writ outlines a protracted dispute between the two contractors dating back to September 2024, when Pacific Industrial alleged it was owed $12.2 million for delay costs and progress payments. Martinus rejected the claim and counter‑alleged that Pacific Industrial had failed to comply with its subcontract and had not demobilised from site by the agreed deadline.
Martinus sought about $2.2 million from Pacific Industrial, largely to cover liquidated damages it said it faced under its head contract with CBH. Pacific Industrial disputed those allegations, including claims of “continuous and intentional breaches”.
The parties reached a settlement in October 2024, with Martinus agreeing to pay $4.8 million across six instalments. Pacific Industrial alleges the final instalment was not paid and is seeking a court order for the outstanding amount, plus interest and costs. Martinus has been contacted for comment.
CBH awarded Martinus Rail and Aerison major contracts for the Broomehill rapid‑rail and outloading facility in 2023. The project included construction of a 2.1‑kilometre rail siding designed to improve grain loading efficiency and reduce turnaround times for rail movements through the Great Southern region.
The facility was completed in early 2025 and forms part of CBH’s broader network‑capacity program aimed at lifting export efficiency across its supply chain. The Broomehill upgrade is one of several rail‑linked investments CBH has made to reduce bottlenecks between receival sites and port terminals.
CBH is not a party to the legal action and has not commented publicly on the dispute.
