14/09/2009 - 15:58

CBH Group changes port pricing

14/09/2009 - 15:58

Bookmark

Save articles for future reference.

Grain handling and exporting group CBH has changed the way it charges for its services, to accomodate growers who use alternative transport arrangements in the deregulated grains market.

Grain handling and exporting group CBH has changed the way it charges for its services, to accomodate growers who use alternative transport arrangements in the deregulated grains market.

 

 

Supply chain costs to become clearer and simpler

The CBH Group has changed the way it calculates its grain storage and handling charges, making it simpler for growers and exporters. The overall cost of the supply chain will not increase for the 2009-10 season; only the way that CBH Grain Operations calculates the cost will change.

The change to the pricing structure comes after the CBH Group recently conducted an extensive review of the cost and value of its port services and facilities. This was required as part of the CBH Group's Port Access Undertaking submission to the Australian Competition and Consumer Commission (ACCC).

CBH Group Executive Manager Logistics, Tim Collins, said the process highlighted the need to adjust the pricing structure to better reflect the true cost of the CBH Group's services and facilities throughout the supply chain.

"The previous pricing structure for our storage and handling costs was formed under the single desk bulk export arrangements and the review confirmed that this is no longer suitable for the newly deregulated marketing environment," he said.

"The most significant change for growers will be the removal of the Time Based Storage Fee. Growers will now be charged one upfront Receival and Storage fee which will cover the receival, sampling and storage of grain up until the following harvest.

"This makes grain storage and handling charges a lot simpler and clearer for growers and provides them with greater certainty on what they are being charged by the CBH Group. "

Mr Collins said the changes will see the cost of the CBH Group's port services unbundled from the rest of the supply chain, meaning the cost is the same, regardless of whether exporters use the CBH supply chain under Grain Express or an alternative supply chain under Direct Port Access.

"This ensures all exporters using the CBH Group's port facilities have clear and equitable access to port services in terms of pricing," he said

"The changes to our pricing structure are aligned with the requirements outlined in the ACCC's draft decision last month on our Port Access Undertaking."

Mr Collins said that the new pricing structure will better represent the true cost and value of the CBH Group's services and make costs simpler and more transparent for all users of the supply
chain.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options