Competition regulator proposes to allow GrainCorp to vary the running of its Newcastle bulk grain facility.
GrainCorp has secured the support of the competition regulator to vary the conditions of its Newcastle bulk grain facility in New South Wales.
The Australian Competition and Consumer Commission (ACCC) has issued a draft decision proposing to consent to GrainCorp’s plans to give it greater flexibility to compete against two other bulk wheat export operations at the Port of Newcastle.
GrainCorp wants its Carrington terminal in Newcastle to be subject to minimal regulation. It claims existing conditions put it at a competitive disadvantage because other bulk wheat export facilities it competes with are not subject to access regulation.
The ACCC says there is enough competition and capacity at the port, and up-country, such that the current level of regulation is not required.
“Where there is sufficient competition, minimal or no regulation is required; where wheat ports have significant market power or are a monopoly and owned by a wheat marketer in competition with others upstream, then regulation is required to ensure farmers can sell their grain into a competitive market,” ACCC Chairman Rod Sims says.
The ACCC is now seeking comments from interested parties on its draft decision, before making its final decision. The deadline for submissions is May 2.
The ACCC approves access undertakings for port terminal operators that also have bulk wheat exporting operations.
Operators must submit access undertakings to the ACCC to meet legislative requirements and be entitled to export bulk wheat.