GRAINCORP has confirmed it has dropped a controversial $2.50 a tonne fee for delivering grain from its upcountry sites to rival ports.
The news comes in the wake of the Australian Consumer and Competition Commission (ACCC) review into port access arrangements which recommended exemptions to the port access code, such as those granted to GrainCorp, be retained.
However, the regulator was known to be concerned about the fee, applied on deliveries to the Newcastle Agri Terminal, the Quattro port facility in Port Kembla and the Port of Melbourne.
Grain exporters had raised the fee as an issue when the ACCC asked for feedback on potential competition issue as it increased freight costs in sending grain to rival ports.
While dropping its charge, a spokesman for GrainCorp said the company had to recoup some of its rail maintenance costs.
“GrainCorp has substantial fixed rail costs and is making a substantial investment in rail loading at our country sites,” he said.
“We must ensure fees and charges are set to manage these costs efficiently and effectively.”
The Port of Melbourne can handle over 1.5 million tonnes of grain annually with adequate supply, while Quattro has 1.3mt of capacity and NAT also has the scope to export significant volumes of grain.
However, this year will mark the first season since the construction of NAT and Quattro that there have been large volumes of grain down the entire east coast where GrainCorp has its geographic footprint.
Shipping stem slots are already tightening, with Australian grain competitively priced to find a home internationally.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
