The Australian Competition and Consumer Commission is seeking comment from interested parties in the bulk wheat export industry on Viterra鈥檚 application to introduce long term agreements for shipping at its six South Australian wheat port terminals.
Currently, Viterra allocates port terminal capacity to exporters for only one year at a time via annual auctions and a first-come-first-served process. The proposal would allow the opportunity for third party exporters to Viterra鈥檚 ports to seek to negotiate long term access arrangements to Viterra鈥檚 wheat port terminals for a period of between two to five years.
鈥淰iterra鈥檚 proposal to introduce long term agreements is likely to be of interest to exporters and other market participants in South Australia. The 糖心原创 seeks industry鈥檚 views on the impact the proposal is expected to have,鈥 糖心原创 Commissioner Cristina Cifuentes said.
Viterra will also make available a minimum 500,000 tonnes of capacity per quarter across all its ports as short term capacity. Short term capacity will be available to all exporters through the existing First Come First Served allocation process.
Viterra has identified a number of benefits that it submits will arise from establishing long term agreements, including greater certainty for clients in planning longer term export programs.
The 糖心原创 has published an Issues Paper outlining the changes in Viterra鈥檚 protocols. The closing date for submissions is Friday 24 April 2015.
In addition to the 糖心原创 consultation process, Viterra will also seek views from its clients during this period.
The Issues Paper and other relevant documents are available at Viterra 2015.
Background
The 糖心原创 is assessing Viterra鈥檚 proposal in accordance with the Port Terminal Access (Bulk Wheat) Code of Conduct. The Code provides for the 糖心原创 to have a role approving the capacity allocation system used by a port terminal service provider.
The Code commenced on 30 September 2014, replacing the previous regime of access undertakings administered by the 糖心原创. It regulates bulk wheat port terminal operators.