March 5, 2009

Western Australia's Cooperative Bulk Handling Ltd. late Wednesday (March 4) unveiled plans to reopen and revise a system of allocating vessel berths at coastal terminals to load grain cargoes for export, effective Thursday.

 

Under the new temporary system, exporters will be asked to submit an expression of interest in order to book shipping slots to export grain, it said.

 

The company, which operates an authorized monopoly over grain logistics in the state, aims to regulate bookings on its shipping stem or schedule so that monthly shipping requirements meet the capacity of the state's up-country transport network to bring the grain to port, it said.

 

Late last year, regulator Australian Competition & Consumer Commission granted CBH an exemption from normal competition law to allow it to operate its Grain Express logistics system now in use.

 

"The revised system has been supported by marketers as a short-term solution to alleviate the current backlog at the state's four port terminals," CBH reported in a statement.

 

CBH stopped taking bookings for berths to load grain cargoes in early February, when the up-country system became overloaded. At some stages more than 20 vessels were loading grain or at anchor waiting for a berth.

 

In CBH's shipping schedule dated Wednesday, 65 vessel slots have been nominated by nine exporters through early May.

 

The first round of shipping slots on offer under the new system is for dates from April 20 and May 31. Exporters wishing to book slots in this time will need to submit their expressions of interest by 5 PM Perth time on Monday, it said.

 

All expressions will be assessed in relation to the capacity of the logistics system in each of CBH's four port zones to haul the grain to port. The marketer's entitlement and prior shipments will be considered when allocating slots, it said.

 

"CBH Operations will continue to work with the industry to overcome the challenges of operating within a network with a limited transport capacity to move the grain to port," it said.

 

CBH wants to develop a long term solution that guarantees a more co-ordinated, manageable and efficient shipping allocation system and is working to have this in place by August, it said.

 

So far this shipping year, which started Nov. 1, CBH has loaded on export vessels 3.6 million metric tonnes of the 12.3 million tonnes it received from winter crops harvested in October through January.

 

Since Nov. 1, the company loaded 117 ships in 123 days and is aiming to export a record tonnage this month, it said.