The Port of Portland (POPL) is seeking to relax regulations around its ability to provide terminal services for wheat shipments - a position strenuously opposed by grain producers.
The Port has asked the Australian Competition and Consumer Commission to rule on whether it should become an exempt service provider, under the Port Terminal Access (Bulk Wheat) Code of Conduct.
The code of conduct was introduced in 2014 to regulate port terminal service providers and ensure exporters of bulk wheat had 'fair and transparent access' to facilities.
An exemption, if granted, would mean that POPL would be subject to a reduced level of regulation and the port would have greater flexibility in its operations.
Victorian Farmers Federation Grains Group president Ash Fraser said the organisation supported the Code.
Offering Portland an exemption would not create more competition.
"It's around transparency and fair market competition," Mr Fraser said.
"The code is very good for the industry and we want to see it left in place."
The VFF's position was that all bulk port facilities should be subject to the Code, irrespective of whether there was competition or not.
Portland has told the ACCC exemption would allow it to increase capacity and support investment in additional storage, rail and infrastructure.
Currently GrainCorp and Riordan Grain Services (RGS) operate out of Portland.
"Exemption will reduce the significant regulatory costs of compliance, in circumstances were (the port's) bulk wheat shiploading services are small-scale and ad hoc," POPL told the ACCC.
"It will give POPL greater operational flexibility and enable it to provide a more competitive port terminal service, while ensuring commercial viability."
"Exemption will promote operational efficiency, and efficient investment: Portland's current bulk wheat shiploading services are scalable and POPL would consider further investment to meet customer demand, but it would only be operationally and commercially efficient to do so if it had an exemption to reduce to the costs of the operation."
In 2019, the ACCC handed down a draft finding that GrainCorp's Portland facility would not be exempt from the bulk wheat export port access code.
POPL has argued its shiploading service is made up of a small, single port terminal facility, which doesn't warrant, and could not support, the more burdensome compliance costs of the Code.
"The volume of bulk wheat that POPL shifts through its ad hoc shiploading is approximately 144,500 tonnes (FY21), which equates to approximately 15 per cent of all bulk grain and 3pc of all throughput.
"Given this small proportion (on any view), the costs of compliance in monetary, administrative and efficiency terms are disproportionate, and would compromise the ongoing commercial viability of Portland's ad hoc shiploading services."
It told the ACCC it anticipated loading a maximum of 600,000 tonnes per year at Portland, being approximately 24 vessels, at 25,000 tonnes each.
Rail woes
It comes at a time when its been revealed the speed limit on the Maroona-Portland rail freight line has been halved from 80km/h to 40km/h due to the track's poor condition.
Read more: Handbrakes put on harvest
"With an above average-grain harvest approaching, halving the speed limit for all trains on the Maroona-Portland rail freight line could not have come at a worse time," Lowan Nationals MP Emma Kealy said.
The decision by ARTC added two hours to the journey time of all trains travelling to and from Portland, incurring extra crew costs for rail operators.
"A third locomotive is now also required on most trains as the slow speed means there is insufficient momentum to lift trains over a number of uphill gradients on the line," Ms Kealy said.
"These inefficiencies and cost increases will inevitably force more grain onto road transport, resulting in increased damage to our regional roads and exposing all road users to increased safety risks."
An ARTC spokesperson confirmed there were speed restrictions in place on the line to ensure it is operating within the limits of safety as defined in the National Code of Practice.
"ARTC has in recent years replaced a number of deteriorated timber sleepers, prioritising works on a condition basis," the spokesperson said.
"There is unlikely to be a major impact on freight to Portland.
"Grain is the primary commodity moved and over the past five years there has been very limited demand for rail services to use the Port of Portland, preferring alternate export locations in Victoria."
A state government spokeswoman said history showed that the Victorian Liberal Nationals have underfunded and under-delivered when it came to regional road and rail maintenance.
"The proof is in the numbers," the spokeswoman said.
"The Portland - Maroona freight line is managed by the ARTC and under the lease arrangements, they are required to maintain its condition."
An ACCC spokesman said the current consultation process closes on November 26, after which the commission would consider and assess the issues raised in submissions and other relevant factors.
"The Commission will need to consider stakeholder views first before confirming next steps and timing of the application assessment, including when the draft determination will be released," the spokesman said.
Following the release of the draft determination the ACCC would provide industry time to consider the draft view on the application assessment.
A consultation period would usually be around four weeks, but may vary depending on the complexity of the issues.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
