CANBERRA: Australian regulators have proposed easing rules on two major grain transportation companies at the Port of Newcastle export hub, a boost for the firms as they face tepid demand with dry weather curbing wheat production.
The Australian Competition and Consumer Commission (ACCC) proposed exempting Newcastle Agri Terminal and Qube Holdings Limited from regulations that oblige Australian port operators to grant access to rivals for the export of bulk commodities.
The ACCC has said the rules are not needed due to an increased number of ports in the northern New South Wales region. The latest proposal comes after the watchdog exempted GrainCorp Ltd from similar regulation in October at a nearby port.
“The ACCC considers that the level of competition and spare capacity at the Port of Newcastle means that, even if exempt, NAT and Qube will face sufficient incentives to provide fair and transparent access to wheat exporters,” Cristina Cifuente, commissioner at the Australian watchdog said in a statement.
While port competition has increased across the Australian east coast, dry weather has limited the production of wheat – the country’s largest agricultural commodity – limiting demand for port access.
