SYDNEY, AUSTRALIA — The Australian Competition and Consumer Commission (ACCC) said on Aug. 14 that it will not accept Emerald Logistic Services initial plan for bulk wheat exports at Emerald’s bulk-grain port terminal in Melbourne, Australia, but said it would reconsider a revised proposal.
“While the ACCC considers most aspects of Emerald’s proposed undertaking are appropriate, there are certain concerns,” ACCC Commissioner Joe Dimasi said.
Emerald has provided a draft revised undertaking to the ACCC in response to the concerns of the ACCC and stakeholders. The ACCC said the draft revised undertaking appropriately addresses the ACCC’s concerns. If Emerald formally resubmits a proposal in line with that draft revised undertaking, the ACCC's preliminary view is that it would be likely to accept it.
“To inform its final decision, the ACCC is seeking industry comment on the revisions made by Emerald,” Dimasi said.
Emerald’s undertaking adopts a similar framework to its current undertaking, which is due to expire on Sept. 30. Emerald’s revisions include changes which give greater certainty to exporters about the target percentage of grain to be transported by rail, clarify that customer agreement is required for stock swaps, and make clear that its access agreement only applies to port services.
The ACCC has a role in approving access undertakings for port terminal operators who also have bulk wheat exporting operations. The undertakings are intended to ensure that competing exporters are able to access the ports, ensuring fair competition in the market for the export of bulk wheat.
The ACCC is seeking comments from stakeholders on its draft decision. Submissions should be provided by Aug. 28.
The ACCC’s draft decision and Emerald’s draft revised undertaking are available at http://transition.accc.gov.au/content/index.phtml?itemId=964331
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