The ACCC has released a draft determination proposing to grant Riordan Grain Services an exemption under the mandatory wheat code for its port terminal facility at Portland.
At this time, however, the ACCC proposes to not grant an exemption to GrainCorp’s Portland port terminal.
The ACCC considered the way in which these port terminal facilities compete for bulk wheat volumes and examined the catchment area that supplies grain to Portland. The ACCC also considered the level of competition in services across the supply chain.
The ACCC invites interested parties to respond to these preliminary views, and will consider them prior to reaching a final view.
The ACCC’s draft assessments are available at: Draft determination.
The ACCC invites submissions from interested parties on its draft determinations. The closing date for submissions is 13 September 2019.
Background
The Wheat Port Code of Conduct commenced on 30 September 2014.
The code regulates bulk wheat port terminal service providers to ensure that exporters have fair and transparent access to terminal facilities. Where appropriate, the ACCC may reduce regulation at a specific port terminal by exempting the relevant port terminal service provider from certain provisions of the code.
Exempt service providers are not subject to a number of the code’s provisions, including a non-discrimination requirement, dispute resolution processes, ACCC approval of capacity allocation systems, and certain reporting requirements.
The code provides that exempt service providers are however still required to deal with exporters in good faith and publish a port loading statement and loading procedures.