Green light for CBH port proposal

Rueben HaleThe West Australian
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CBH says the acceptance of its new port proposal will pave the way for the co-operative to further increase its grain handling capacity.

The Australian Competition and Consumer Commission has released its draft decision to accept the CBH's proposal to replace its existing Port Access Undertaking, which includes the option for CBH to enter into long term agreements with exporters who use its port services.

CBH Operations general manager David Capper said that the draft decision from the ACCC was pleasing and not unexpected considering the support from its export customers who have been asking for LTAs for some time.

Mr Capper said the proposed undertaking still has the existing provisions for acquiring port capacity including the Port Capacity Auction system.

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Under the auction system 34 percent of total capacity each month is reserved for non-LTA allocation.

This capacity, including any not taken up under an LTA, will be auctioned through the existing process.

"It is still a regulated process and does not reflect a purely commercial approach but the balance offered is a definite improvement for CBH and its customers," Mr Capper said.

"The LTA and auction system combined will provide exporters with greater flexibility to acquire port capacity in a way that meets their needs."

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