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  • By Lynda Kiernan-Stone, Global AgInvesting Media

Australian Grain Groups Vie for Port Access

Replacing the unpopular blind auction system of port access allocation, ten traders, including CBH, have signed long term access agreements covering the next five seasons in Western Australia.

CBH has dedicated more than 10 million tons of capacity per year at its four port terminals under the agreements, and another six million tons of short-term shipping will be open on a first in-first served basis.

Emerald, Plum Grove and Glencore all have stated that they welcome the new access allocation system, and a record number of grain traders are expected to be competing for market share. A full list of agreements is soon to be published, and the first in, first served shipping capacity will be offered to marketers at the end of July.

The increased certainty offered by the agreements is expected to result in growth within the industry as existing marketers expand their operations to meet their contracted capacity, and new players will be more open to the idea entering the grain space without the fear of losing out in the old auction system for port access.

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