The Australian Competition and Consumer Commission has accepted an undertaking from Co-operative Bulk Handling allowing Western Australian wheat exporters access to CBH’s ports at Kwinana, Geraldton, Albany and Esperance.
The access arrangements require:
- CBH not to discriminate or hinder access to port terminal services
- clear and transparent port loading protocols to manage demand for port terminal services
- CBH 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
“The existing auction system for allocating capacity at CBH ports has promoted competition amongst wheat exporters in Western Australia, which has benefited farmers and the export industry,” ACCC chairman Rod Sims said.
The ACCC considers that CBH’s current access arrangements have successfully allowed access to CBH’s port terminal services by wheat exporters and that it is appropriate for those existing arrangements to continue.
CBH agreed to continue with its existing auction arrangements after the ACCC raised concerns about a two-tiered capacity allocation scheme that CBH had previously proposed.
“The ACCC is open to revisiting capacity management options with CBH which are likely to promote efficiency and competition in the wheat export marketing industry in the future,” Mr Sims said.
The accepted undertaking applies from October 2011 to September 2014.
The ACCC has a role in approving access undertakings 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 fair competition in the market for the export of bulk wheat.