RECORD grain harvests have exposed issues with regulations around grain ports, according to the Australian Consumer and Competition
Commission (ACCC).
The Commission’s chair Mick Keogh said consultation with the bulk grain export industry revealed while grower representative groups and some exporters generally supported regulation of bulk grain export supply chains, port terminal operators did not.
He said grain exporters were concerned about a lack of transparency in the way port operators allocated capacity to them.
A key issue the Commission consulted on was the suitability of the Bulk Wheat Code of Conduct, which is the regulation that ensures bulk wheat exporters all have fair and transparent access to port terminal services.
“The bulk grain export industry has undergone some significant changes over the last five years, so we need to consider whether the current regulation of exporter access to port terminals is still fit for purpose,” he said.
“In recent years we’ve seen an increase in the number of port terminal service providers, a higher percentage of non-wheat grain bulk exports, and, at some ports, an increased market share of grain shipments by exporters associated with companies that operate the port terminal facilities.
“While the grain industry has mixed views about the effectiveness of the current code, it’s clear it isn’t working optimally, and a review is needed.
“The ACCC is especially mindful of the regulatory burden the code imposes on new port terminals.”
The Commission reported port terminal service providers told them they had experienced an unprecedented demand for capacity and this was consistent with the record year for bulk grain exports in 2020-21.
“The massive harvest in season 2020-21 resulted in the largest ever volume of bulk grain exports, so it was a good test of both port capacity and the impact of reduced regulation in these markets over the last few years,” Mr Keogh said.