The Australian Competition and Consumer Commission has released its draft decision to accept CBH’s proposal to replace its existing port access undertaking, which gives the company the option to enter into long term agreements with exporters who use its port services.
The Australian Competition and Consumer Commission has released its draft decision to accept CBH Group’s proposal to replace its existing port access undertaking, which gives the company the option 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 long-term agreements for some time.
“The inclusion of long-term agreements as an option for exporters to secure port capacity over three years should provide greater certainty in terms of supply, with better planning over the long term,” he said.
“It also gives CBH further confidence to make investment in the Western Australian supply chain with the aim to increase capacity over the four port terminals to better match exporter demand, which is historically high in the first half of the year.”
CBH said the proposed undertaking would continue to employ the port capacity auction system as a way of providing access to port usage.
“The long-term agreements and auction system combined will provide exporters with greater flexibility to acquire port capacity in a way that meets their needs,” Mr Capper said.
Under the auction system, 34 per cent of total capacity each month will be reserved for non-long term agreement allocation.
The capacity 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.