The Australian Competition and Consumer Commission has accepted an undertaking from Viterra allowing wheat exporters to access Viterra’s six ports in South Australia.

The access arrangements require:

  • Viterra not to discriminate or hinder access to port terminal services
  • clear and transparent port loading protocols to manage demand for port terminal services
  • Viterra to negotiate in good faith with eligible wheat exporters for access to port terminal services
  • wheat exporters to have access to dispute mediation or arbitration on terms of access

Viterra’s revised undertaking introduces an auction system for allocating capacity by May 2012.

“Auctioning capacity will increase competition among wheat exporters and improve the efficient use of Viterra’s port terminal services. These arrangements will benefit all parties involved in the South Australian bulk wheat export market, including Australian farmers,” ACCC chairman Rod Sims said.

The ACCC had rejected the continuation of the ‘first come, first served’ (FCFS) capacity allocation arrangements operated by Viterra. The ACCC noted that under the previous FCFS arrangements, only Viterra and one other exporter could access Viterra’s deep water port terminals at Port Lincoln and Adelaide Outer Harbour in the peak months of January to April 2012.

Prior to the introduction of the auction system, Viterra has withdrawn a number of its own bookings. This greater access to Viterra’s port terminals at Port Lincoln and Adelaide Outer Harbour between January and April 2012 is expected to increase the number of third party exporters from two to seven.

 

Other features of the accepted access arrangements include greater transparency of available capacity, pricing and stock at port information.

“In welcoming Viterra’s initiatives, the ACCC looks forward to a more open, transparent and competitive environment in the South Australian bulk wheat export market,” Mr Sims said.

The accepted undertaking applies from October 2011 to September 2014.

The ACCC has a role in access arrangements for wheat exporters as part of the deregulation of the wheat industry. Access undertakings are intended to ensure that third party exporters are able to access the port terminals operated by vertically integrated port terminal operators, ensuring competition in the market for the export of bulk wheat.

The undertaking and the ACCC’s reasons for decision will be available on the ACCC website.

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