Bulk wheat Port Code exemptions proposed for a couple of smaller players

The Australian Competition and Consumer Commission (ACCC) is proposing to grant bulk wheat Port Code exemptions to Riordan Grain Services and Semaphore Container Services at the Port of Geelong and Port Adelaide.

Riordan and Semaphore will not need to comply with some parts of the Port Terminal Access (Bulk Wheat) Code of Conduct if the draft determinations proposing to exempt the companies from certain parts of the mandatory Bulk Wheat Code in relation to their respective operations at the Port of Geelong and Port Adelaide are adopted.

Submissions from interested parties should reach the ACCC by Friday, 7 July 2017.

“Riordan and Semaphore will both face significant competitive constraint from larger operations. The ACCC’s preliminary view is that it is appropriate to grant exemptions to these smaller players,” ACCC Commissioner Cristina Cifuentes said.

“These relatively new entrants into the market will increase choice for exporters of bulk wheat. The ACCC considers that the exemptions will provide them with greater flexibility to compete with the dominant providers.”

Riordan’s operations at the Port of Geelong compete with the dominant providers of bulk wheat port terminal services in Victoria, Emerald and GrainCorp. The ACCC considers that, in the absence of full regulation under the code, Riordan will continue to face strong competition for bulk wheat volumes from Emerald’s and GrainCorp’s terminals.

In relation to Semaphore, the ACCC’s preliminary assessment is that Semaphore will continue to face strong competition for bulk wheat volumes from Viterra, the dominant provider of bulk wheat port terminal services in South Australia, and competition from LINX Cargo Care’s Port Adelaide facility.