ACCC approves CBH port access agreement

The competition watchdog has accepted CBH Group's amended grain port access agreement, days before the arrangement is due to be implemented.

The Australian Competition and Consumer Commission today formally approved CBH, GrainCorp and Ausbulk's agreements after it sent them back to the drawing board in August, saying there needed to be more clarity and transparency for wheat exporters.

CBH chief executive Andrew Crane today welcomed the decision, adding the group had spent a considerable amount of time understanding and making relevant changes to the agreement, due to be in place on Thursday.

".... we conducted an extensive review of our supply chain costs and have changed the way we calculate those costs, without increasing the average cost per tonne of the Western Australian grain supply chain," he said.

"This has made our pricing clearer and simpler for all users of the supply chain and the cost is the same for exporters, regardless of whether they use the CBH supply chain under Grain Express or an alternative supply chain under Direct Port Access.

"In addition, the CBH Group has also introduced an independently operated online auction system which provides all market participants with fair and equitable access when securing shipping slots and ensures allocation is driven by supply and demand."

Mr Crane added that he is hopeful that CBH's marketing arm, Grain Pool, will have its re-accreditation to export wheat approved before October 1, when its current accreditation expires.