Dry weather has reduced wheat production, decreasing demand for port access
SYDNEY, Australia (Reuters) — Australian regulators have proposed easing rules on two major grain transportation companies at the Port of Newcastle export hub.
The firms are facing tepid demand as dry weather curbs wheat production.
The Australian Competition and Consumer Commission (ACCC) recently 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 commission has said the rules are not needed because of an in-creased number of ports in northern New South Wales.
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,” said Cristina Cifuente, commissioner at the Australian watchdog.
Port competition has increased across the Australian east coast, but dry weather has limited the production of wheat and reduced demand for port access.
