THE Australian Competition & Consumer Commission (ACCC) accepted Emerald Grain's wheat port access undertaking agreement after receiving feedback from industry counterparts.
The new undertaking took effect Oct. 1.
Last year, Emerald Grain acquired the Melbourne Port Terminal, a throughput terminal in Australia with a capacity of 48,000 tons, as part of the company's $120 million investment into developing an integrated supply chain. The terminal is equipped to receive grain by both road and rail.
In its undertaking, Emerald Grain addressed ACCC concerns on the target percentage of grain to be transported to port by rail. Emerald Grain also clarified that a customer agreement is required for stock swaps and has made it clear that the indicative access agreement applies only to port services for bulk wheat exports, in line with the legislation.
"Emerald Grain is in favor of competition at ports and in the Australian grain market. Competition at Australian ports and grain storage facilities means a better return for Australian growers," John Warda, Emerald Grain Group general manager, supply chain and operations, said.
"Emerald Grain worked closely with the ACCC to develop a port access undertaking that the industry feels is equitable and makes the Melbourne Port Terminal a viable and attractive export option for grain exporters in Victoria and southern New South Wales," he added.
Emerald has a long-term lease for two locomotives that operate throughout Victoria and the Riverina to move grain more efficiently to port. There are plans to add an additional train to the network this year.
Emerald Grain, based in Melbourne, is a globally competitive grain trading, marketing, storage and handling company with a footprint in each of Australia's key grain growing regions.