SYDNEY, AUSTRALIA — The Australian Competition and Consumer Commission (ACCC) has decided to exempt Viterra’s Port Adelaide Inner Harbor and Outer Harbor facilities from parts of the Port Terminal Access (Bulk Wheat) Code but not to exempt the grain handler’s services at its Wallaroo and Port Giles facilities.
The decision means Viterra will no longer be subject to requirements not to discriminate against exporters seeking access to its facilities and will not be subject to access-related dispute resolution processes at Inner Harbor and Outer Harbor. The company also will not require ACCC approval of its capacity allocation systems and will no longer be required to publish certain information about expected capacity or bulk grain stocks held at these port terminals. However, Viterra still will have to follow these requirements at its Port Giles and Wallaroo facilities.
“While Viterra is the dominant port service provider for South Australia’s bulk grain export market, we believe their Inner Harbor and Outer Harbor facilities now experience sufficient competition to justify a reduction in regulation,” said Mick Keough, deputy chair of the ACCC. “We are satisfied that Viterra’s Port Adelaide terminals face adequate competitive constraint from three main sources: nearby third-party terminals, Port Adelaide’s containerised export, and domestic grains markets.”
Keough said the ACCC believes it is able to reduce regulation at Viterra’s Port Adelaide operations as the level gives users options in getting their grain to market.
“We don’t believe, however, that Viterra’s Port Giles and Wallaroo facilities currently face enough competition to support a decision to exempt it from the parts of the code which regulate access to the facility by other parties,” Keough said. “But we will continue to closely monitor developments in the South Australian market to see if additional competitors emerge.”
The ACCC noted that Viterra is still required to deal with grain exporters in good faith, publish a port loading statement and loading procedures, and make standard terms and reference prices available at the Port of Adelaide. It also remains subject to the competition law provisions in Part IV of the Competition and Consumer Act 2010.
“The ACCC can revoke its decision to exempt the Port Adelaide terminals at any time, should the reasons for granting it no longer apply,” Keogh said.
Viterra made applications to be exempt from Parts 3 to 6 of the Code at all six of its South Australian port terminals in July 2019. The ACCC’s assessment has required consideration of Viterra’s operations and the broader South Australian grain industry. Given the ongoing changes and market developments, the ACCC has consulted stakeholders and considered a range of data, including current peak season shipping data.
The ACCC anticipates it will release final determinations for Viterra’s Port Lincoln and Thevenard facilities in July 2021, after it considers peak period shipping data.