Time to resolve sugar terminals issue

CANEGROWERS is calling on the owners and operators of Queensland’s bulk sugar terminals to put aside their differences and come together to find a long-term solution to the operation of these strategically significant industry assets. 

Representatives from Sugar Terminals Limited (STL) and Queensland Sugar Limited (QSL) fronted grower-leaders at the CANEGROWERS Policy Council meeting in Brisbane this week, to explain why terminal operations has suddenly become one of the most contentious issues facing the industry. 

Queensland’s sugarcane farmers funded two-thirds of the construction costs of six purpose-built bulk sugar terminals between Cairns and Bundaberg in 1950s and 60s. 

For decades these terminals have been operated safely and successfully by QSL as a not-for-profit enterprise, handling around 4 million tonnes of sugar exports annually. 

However, despite having no hands-on experience in the operation of sugar terminals, in January STL, the owner of the assets, announced its intention to wind up the commercial agreement with QSL and insource terminal operations. 

CANEGROWERS Chairman Owen Menkens said growers are concerned the decision poses unnecessary risks to Australia’s international reputation as a reliable supplier of high quality, sustainably produced sugar. 

“These terminals are a huge asset to the industry,” Mr Menkens said. “They give us a significant competitive advantage in the world market and their efficient, effective and safe operation as a service to the industry is paramount. 

“Growers were the major investors in these facilities, so, we’re not about to sit quietly back and see that legacy risked in any way because these organisations are unable to agree what’s actually in the best interests of the industry,” Mr Menkens said. 

Both parties need to come together and resolve their operational issues in an orderly way.  The grower-led CANEGROWERS Policy Council affirmed that growers want to be assured that:

> terminals will be operated without increased costs while ensuring efficiency and reliability
> there is a forward operating strategy and business plan in place for the terminals 
> terminal operations will always prioritise sugar access
> pricing and access arrangements will continue to be on an equitable basis for all customers

“The bottom line is these terminals have operated very well under QSL,” Mr Menkens said. 

“And the fact that QSL is an industry-owned, not for profit organisation has given growers confidence that these assets are being managed in the best interests of the industry.  

“It is now up to STL to demonstrate to growers that they can do a similar or better job, possibly at lower cost. But we have yet to be convinced of that. 

“If there is a better operating model then surely STL and QSL as two organisations that should be thinking in the best interests of the industry should resolve the situation in a professional manner.  

“CANEGROWERS will continue to fight to ensure this issue resolved in an acceptable way as soon as possible.”