ACCC pressures grain traders over port access

The ACCC had rejected access arrangements proposed by port operators CBH, ABB and Graincorp in their current form, saying proposed arrangements needed greater clarity and transparency for wheat exporters.

Specifically, the ACCC wants port access arrangements required by the Wheat Export Marketing Act to:

• recognise the need for port operators to have flexibility to operate their supply chains efficiently in the transitionary environment;

• provide Australian wheat exporters with fair, transparent and non-discriminatory access to port terminal facilities; and

• provide transparent and clear processes for managing demand for port terminal services.

ABB said it would lodge a revised undertaking that took the ACCC’s requirements into account.

“ABB remains committed to working with the ACCC to implement an access regime which provides the industry the necessary level of comfort about our open access approach," chairman Perry Gunner said.  

“We are, and have been since the original submission, actively engaged in addressing the points raised by the ACCC and providing additional information, where required."

With the deadline for approval due on October 1, GrainCorp confirmed that it would work quickly to submit a revised port terminal access

GrainCorp managing director Mark Irwin said that the ACCC decision not to accept the initial draft of the undertaking was expected.

“Developing an access undertaking is a complex and lengthy process, particularly when it relates to services and infrastructure which have not previously been regulated by the ACCC,” Mr Irwin said.

“We submitted our draft undertaking to the ACCC on April 15.

"Following several discussions with the ACCC it became apparent that drafting changes and revision to some of the content of the draft undertaking would be required, and a decision to not accept the initial draft of an undertaking is not uncommon.”

On the impact the new regulations might have on the provision of port terminal services to grain exporters, Mr Irwin said the new regulations did not affect GrainCorp's ability to provide grain elevation services to customers at its port terminals.

“GrainCorp has always had the policy and practice of providing ‘open access’ at our port terminals," Mr Irwin said.

"We have had lengthy discussions with the ACCC, our customers and Wheat Exports Australia during the year, and these discussions have already led us to make a range of changes to our port terminal protocols and our shipping stem.

“Our willingness to respond to constructive input from interested parties, and to improve our protocols and procedures, shows that we are committed to working co-operatively within the new regulations controlling the export of bulk wheat from Australia introduced in July last year.”