The Australian Competition and Consumer Commission has issued a draft decision proposing to not accept, in its current form, Emerald Logistic Services Pty Ltd’s (Emerald) proposed wheat port access undertaking. The undertaking relates to access to port terminal services for bulk wheat export at Emerald’s bulk-grain port terminal in Melbourne.

“While the ACCC considers most aspects of Emerald’s proposed undertaking are appropriate, there are certain concerns,” ACCC Commissioner Joe Dimasi said.

However, Emerald has provided a draft revised undertaking to the ACCC in response to the concerns of the ACCC and stakeholders. The ACCC is of the view that the draft revised undertaking appropriately addresses the ACCC’s concerns. If Emerald formally resubmits an undertaking in line with that draft revised undertaking, the ACCC's preliminary view is that it would be likely to accept it.

“To inform its final decision, the ACCC is seeking industry comment on the revisions made by Emerald,” Mr Dimasi said.

Emerald’s undertaking adopts a similar framework to its current undertaking, which is due to expire on 30 September 2013. Emerald’s revisions include changes which give greater certainty to exporters about the target percentage of grain to be transported by rail, clarify that customer agreement is required for stock swaps, and make clear that its access agreement only applies to port services.

The ACCC has a role in approving access undertakings for port terminal operators who also have bulk wheat exporting operations. The undertakings are intended to ensure that competing exporters are able to access the ports, ensuring fair competition in the market for the export of bulk wheat.

The ACCC is seeking comments from stakeholders on its draft decision. Submissions should be provided by 28 August 2013.

The ACCC’s draft decision and Emerald’s draft revised undertaking.