The ACCC has released draft determinations proposing to exempt the services provided by grain handler Viterra in its Port Adelaide Inner Harbour and Outer Harbor facilities from parts of the Port Terminal Access (Bulk Wheat) Code.
Viterra applied to be exempt from parts 3 to 6 of the code at all six of its South Australian port terminals; however, the ACCC’s draft determinations do not propose to exempt the company’s Port Lincoln, Wallaroo, Port Giles, and Thevenard facilities.
“Although Viterra is the dominant port service provider for South Australia’s bulk grain export market, we’ve formed the preliminary view that an increase in competition justifies a reduction in regulation at Inner Harbour and Outer Harbor,†ACCC Deputy Chair Mick Keogh said.
“The draft determinations for Inner Harbour and Outer Harbor were finely balanced but after looking at the South Australian grains market in detail, we were satisfied that Viterra’s Port Adelaide terminals face a level of competition from nearby third party facilities, Port Adelaide’s containerised exports, as well as domestic grain markets.â€
“We don’t believe that Viterra’s port terminal facilities around the Yorke Peninsula and Eyre Peninsula face sufficient competition to support exemptions at this time, though the ACCC will continue to closely monitor developments in the South Australian market,†Mr Keogh said.
Over the last six years, 68 per cent of all grain grown in South Australia, and 94 per cent of all bulk grain exports, have been exported through Viterra’s port terminal facilities.
If the ACCC grants a final exemption for Inner Harbour and Outer Harbor, the lower level of regulation will include Viterra no longer being subject to the code’s non-discrimination requirements and dispute resolution processes.
The company will also not require ACCC approval of capacity allocation systems, and no longer be required to publish certain information about expected capacity or bulk grain stocks held at these port terminals.