ACCC to scrutinise wheat terminals
THE AUSTRALIAN Competition and Consumer Commission (ACCC) has announced an inquiry into how port grain terminal operators deal with their wheat customers.
The ACCC said last week it was seeking submissions from wheat export industry participants on access undertakings by CBH, GrainCorp and ABB for port export terminal services at each of the terminals they operate.
The undertakings relate to export terminals at:
• Western Australia: Albany, Esperance, Geraldton and Kwinana;
• South Australia: Port Adelaide, Outer Harbour, Port Giles, Wallaroo, Port Lincoln and Thevenard;
• Queensland: Fisherman Island, Gladstone and Mackay;
• New South Wales: Carrington and Port Kembla;
• Victoria: Geelong and Portland.
The terminal operators are obliged to have access arrangements in place by October 1 to retain accreditation to export bulk wheat under the Wheat Export Marketing Act 2008, the ACCC said.
Each of the proposed undertakings provides for, among other matters:
• A negotiate/arbitrate model in relation to price and non-price terms;
• Obligations regarding non-discrimination in the provision of port terminal services;
• Obligations regarding port terminal capacity management, including the shipping stem;
• Ring-fencing obligations providing for restrictions on information flows.
The ACCC staff will visit Brisbane, Sydney, Melbourne, Adelaide and Perth next month to meet with interested parties and has also published an issues paper on its website asking for comment.
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