The Australian Competition and Consumer Commission invites submissions from interested parties in the bulk wheat export industry on CBH’s proposed new Port Terminal Services Access Undertaking.
The undertaking would provide access for third party exporters to CBH’s port terminal services for bulk wheat export at its four port terminals in Western Australia.
CBH is proposing to introduce long-term agreements, which will make available up to 66 per cent of port terminal capacity for customers to book for three years. Capacity not covered by long-term agreements will be available to all exporters through the existing processes. Currently, CBH allocates port terminal capacity to exporters for only one year at a time via annual auctions and first-come-first-served process.
“CBH’s proposal to introduce long term agreements is likely to be of interest to exporters and other market participants in Western Australia. The ACCC seeks industry’s views on what impact the proposal is expected to have,” ACCC Commissioner Cristina Cifuentes said.
The proposed undertaking would commence after the expiry of CBH’s current undertaking on 30 September 2014, if a mandatory industry-wide code of conduct governing access to bulk wheat ports is not introduced before then.
CBH has proposed for the new undertaking to apply until 30 September 2017, or until a mandatory industry-wide code of conduct is implemented. CBH intends to obtain greater certainty for both itself and exporters pending the introduction of the code.
The ACCC is assessing CBH’s proposed undertaking in accordance with the criteria in Part IIIA of the Competition and Consumer Act 2010.
The ACCC has published an Issues Paper outlining the changes in CBH’s proposed undertaking. The closing date for submissions is 30 April 2014.
The Issues Paper and other relevant documents are available at http://www.accc.gov.au/regulated-infrastructure/wheat-export/co-operative-bulk-handling-2014/proposed-undertaking.