The Australian Competition and Consumer Commission (ACCC) has made a final determination that Cargill Australia Limited (Cargill) is an 'exempt service provider' of port terminal services provided via its port terminal facility at Port Adelaide, Inner Harbour.
The final determination sets out the reasons why the ACCC considers the exemption appropriate. These include the ACCC’s view that Cargill will face substantial competitive constraint from existing port terminal service providers and, as a new entrant, will have incentives to provide exporters with fair and transparent access to its services.
The exemption means that Cargill will not be required to comply with Parts 3 to 6 of the Port Terminal Access (Bulk Wheat) Code of Conduct in the course of providing services at Port Adelaide, Inner Harbour.
The ACCC’s final determination is available at Cargill wheat port exemption assessment.
Background
The Port Terminal Access (Bulk Wheat) Code of Conduct, which commenced on 30 September 2014, 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.