Public – I2 – A2

Total Page:16

File Type:pdf, Size:1020Kb

Public – I2 – A2 Public – I2 – A2 The Essential Services Commission invites written submissions on this paper by Monday, 17 September 2018. It is the Commission’s policy to make all submissions publicly available via its website (www.escosa.sa.gov.au), except where a submission either wholly or partly contains confidential or commercially sensitive information provided on a confidential basis and appropriate prior notice has been given. The Commission may also exercise its discretion not to publish any submission based on length or content (for example containing material that is defamatory, offensive or in breach of any law). Responses to this paper should be directed to: Inquiry into the South Australian bulk grain export supply chain costs. It is preferred that submissions are sent electronically to: [email protected]. Alternatively, submissions can be sent to: Essential Services Commission GPO Box 2605 Adelaide SA 5001 Telephone: (08) 8463 4444 Freecall: 1800 633 592 (SA and mobiles only) E-mail: [email protected] Web: www.escosa.sa.gov.au The Essential Services Commission is an independent statutory authority with functions in a range of essential Publicservice—I2s— includingA2 Inquiry water, into sewerage,the South Australianelectricity, gas,bulk rail grain and export maritime supply services, chain andcosts also has a general advisory2 function on economic matters. For more information, please visit www.escosa.sa.gov.au. Glossary of terms ......................................................................................................................................................... ii 1 Overview .................................................................................................................................................................1 1.1 Context .........................................................................................................................................................2 1.2 Draft findings ...............................................................................................................................................2 1.3 Purpose of the inquiry and this Draft Report ........................................................................................5 1.4 Report contents and structure.................................................................................................................6 1.5 Next steps ....................................................................................................................................................6 2 The approach to the Inquiry ...............................................................................................................................7 2.1 About the inquiry ........................................................................................................................................7 2.2 How the Commission assesses supply chain efficiency ...................................................................8 2.3 Inquiry process......................................................................................................................................... 12 3 Overview of the supply chain .......................................................................................................................... 14 3.1 South Australia’s place in the bulk grain export market .................................................................. 14 3.2 South Australian harvest trends ........................................................................................................... 16 3.3 South Australia’s bulk grain export supply chain .............................................................................. 18 3.4 Conclusion ................................................................................................................................................ 28 4 Whether the supply chain is efficient ............................................................................................................ 29 4.1 Segments of the supply chain .............................................................................................................. 30 4.2 Segments of the supply chain that warrant review .......................................................................... 30 4.3 Market structure for services that Viterra provides .......................................................................... 36 4.4 Investigating Viterra’s market behaviour ............................................................................................ 40 4.5 Conclusion ................................................................................................................................................ 72 5 Other issues ........................................................................................................................................................ 74 5.1 Grain pooling ............................................................................................................................................ 74 5.2 Grain stock information.......................................................................................................................... 75 5.3 The basis of road and rail cost recovery ............................................................................................. 77 5.4 Quality arbitrage ...................................................................................................................................... 78 5.5 Statewide transport access regime covering grain storage and handling .................................. 80 5.6 20-foot containers ................................................................................................................................... 81 6 Next steps ........................................................................................................................................................... 82 Appendix A—Terms of reference ............................................................................................................................ 83 Appendix B—Evidence to assess the efficiency of the supply chain ............................................................... 88 Appendix C—Data verification process ............................................................................................................... 106 Appendix D—Financial analysis ............................................................................................................................ 108 Appendix E—Breakdown of grain pathway fees ................................................................................................ 111 Appendix F—Market power analysis .................................................................................................................... 115 Public—I2—A2 Inquiry into the South Australian bulk grain export supply chain costs i ABB Grain Australian Barley Board (the bulk handler in South Australia before Viterra acquired it in 2009) ACCC Australian Competition and Consumer Commission AEGIC Australian Export Grains Innovation Centre ARTC Australian Rail Track Corporation Berth 29 A shipping berth within the Inner Harbour – Port Adelaide precinct, set up for the bulk loading of vessels CAPM Capital asset pricing model Cargill Cargill Australia Ltd (a grain handler and trader, and a subsidiary of multinational agribusiness Cargill Inc.) CBH CBH Ltd, based in Western Australia COAG Council of Australian Governments Commission Essential Services Commission, established under the Essential Services Commission Act 2002 (SA) CPI Australian Bureau of Statistics’ consumer price index DAWR Department of Agriculture and Water Resources (Australian Government) DPTI Department of Planning, Transport and Infrastructure, South Australia DTF Department of Treasury and Finance, South Australia EBIT Earnings before interest and tax EP Eyre Peninsula ESC Act Essential Services Commission Act 2002 (SA) eastern South Australia The portion of the South Australian land mass east of the Spencer Gulf economies of scale When cost per unit of output declines with increasing scale. Economies of scale are usually associated with a cost structure that has high fixed costs relative to variable costs. Flinders Ports The owner and operator of prescribed ports, currently supplying services for all bulk grain exported through South Australia Glencore Glencore Agriculture (affiliated company of Viterra) GPSA Grain Producers South Australia GWA Genesee and Wyoming Australia Pty Ltd Public—I2—A2 Inquiry into the South Australian bulk grain export supply chain costs ii market power A firm’s ability to raise price persistently above efficient cost, to exclude competitors or, more generally, to act in an unconstrained manner MSA Act Maritime Services (Access) Act 2000 (SA) NOPAT Net operating profit after tax NTC National Transport Commission on-farm storage Grain storage capacity on the farm operating surplus Operating revenue less operating expense PIRSA Department of Primary Industries and Regions, South Australia port access regime A regime established under the MSA Act, allowing third party access to port facilities in South Australia port terminal services Bulk loading facilities PTAC Port Terminal Access (Bulk Wheat) Code of Conduct, designed to regulate the conduct of bulk wheat port terminal operators, and administered by the ACCC rail access regime A regime established under the ROA Act, allowing third party access
Recommended publications
  • Tourism Australia Update
    Having trouble reading? version 29 July 2020 TOURISM AUSTRALIA UPDATE The tourism industry has had another tough week with interstate travel restrictions tightening and ongoing uncertainty around when the industry will see some return to normality. As frustrating as this is, we are also getting encouraging feedback about significant levels of pent up demand for domestic holidays – and a desire to have different types of holidays. So, while we continue to face some challenges, we can be confident, that when people are able to travel freely again, they will. Tourism Australia is continuing to develop its domestic campaign plans, more details of which we will be sharing this Friday 31 July at 11am in our next webinar. The webinar will include a consumer insights update from our Executive General Manager of Strategy & Research, Rob Dougan, and a marketing update from our Chief Marketing Officer, Susan Coghill. We will also be joined by Australia’s Tourism Minister, Simon Birmingham, who will give an update on Australia’s ongoing response to coronavirus. Register here. Also a reminder that over the past few weeks, Tourism Australia’s international teams have hosted a series of virtual market specific updates and you can watch recordings here. Phillipa Harrison LET YOUR CUSTOMERS KNOW YOUR BUSINESS IS COVID-SAFE While some tourism businesses are reopening across Australia and others continue to navigate tightening restrictions, implementing and communicating COVID-Safe measures to customers has never been more important. See some of the different approaches that businesses are taking here: Capricorn Enterprise Ovolo Hotels Questacon Perisher Mogo Zoo TOURISM AUSTRALIA ACTIVITY Australia included in Travel + Applications closing - Australia Leisure's World's Best Awards Marketplace Online Readers of Travel + Leisure have Applications for Australia ranked Tasmania and the Great Marketplace North America and Barrier Reef islands in the top 25 Australia Marketplace UK & World’s Best Islands category in Europe will close this Friday 31 the 2020 World's Best Awards.
    [Show full text]
  • Ngaanyatjarra Central Ranges Indigenous Protected Area
    PLAN OF MANAGEMENT for the NGAANYATJARRA LANDS INDIGENOUS PROTECTED AREA Ngaanyatjarra Council Land Management Unit August 2002 PLAN OF MANAGEMENT for the Ngaanyatjarra Lands Indigenous Protected Area Prepared by: Keith Noble People & Ecology on behalf of the: Ngaanyatjarra Land Management Unit August 2002 i Table of Contents Notes on Yarnangu Orthography .................................................................................................................................. iv Acknowledgements........................................................................................................................................................ v Cover photos .................................................................................................................................................................. v Abbreviations ................................................................................................................................................................. v Summary.................................................................................................................................................................................... 1 1 Introduction ....................................................................................................................................................................... 2 1.1 Background ...............................................................................................................................................................
    [Show full text]
  • Epidemics and Pandemics in Victoria: Historical Perspectives
    Epidemics and pandemics in Victoria: Historical perspectives Research Paper No. 1, May 2020 Ben Huf & Holly Mclean Research & Inquiries Unit Parliamentary Library & Information Service Department of Parliamentary Services Parliament of Victoria Acknowledgments The authors would like to thank Annie Wright, Caley Otter, Debra Reeves, Michael Mamouney, Terry Aquino and Sandra Beks for their help in the preparation of this paper. Cover image: Hospital Beds in Great Hall During Influenza Pandemic, Melbourne Exhibition Building, Carlton, Victoria, circa 1919, unknown photographer; Source: Museums Victoria. ISSN 2204-4752 (Print) 2204-4760 (Online) Research Paper: No. 1, May 2020 © 2020 Parliamentary Library & Information Service, Parliament of Victoria Research Papers produced by the Parliamentary Library & Information Service, Department of Parliamentary Services, Parliament of Victoria are released under a Creative Commons 3.0 Attribution-NonCommercial- NoDerivs licence. By using this Creative Commons licence, you are free to share - to copy, distribute and transmit the work under the following conditions: . Attribution - You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). Non-Commercial - You may not use this work for commercial purposes without our permission. No Derivative Works - You may not alter, transform, or build upon this work without our permission. The Creative Commons licence only applies to publications produced by the
    [Show full text]
  • Commercially Harvested Macropods 2018-22
    Commercially Harvested Macropods 2018–22 Prepared by: Industry and Development Assessment, Department of Environment and Heritage Protection © The State of Queensland (Department of Environment and Heritage Protection) 2017 Disclaimer This document has been prepared with all due diligence and care, based on the best available information at the time of publication. The department holds no responsibility for any errors or omissions within this document. Any decisions made by other parties based on this document are solely the responsibility of those parties. Information contained in this document is from a number of sources and, as such, does not necessarily represent government or departmental policy. If you need to access this document in a language other than English, please call the Translating and Interpreting Service (TIS National) on 131 450 and ask them to telephone Library Services on +61 7 3224 8412. This publication can be made available in an alternative format (e.g. large print or audiotape) on request for people with vision impairment; phone +61 7 3224 8412 or email <[email protected]>. March 2017 Definitions Carcase—the body of an animal slaughtered for meat, after removal of the offal. Note: from the Macquarie Dictionary. Dealer site—licensed site that enables the purchase of harvested macropods from a licensed harvester but does not allow the processing of the harvested macropod. Ecologically sustainable development—this plan employs the definition contained in the Environment Protection and Biodiversity Conservation Act 1999. In general this definition includes the precautionary principle, inter- generational equity, conservation of biological diversity and ecological integrity, and improved valuation of environmental factors.
    [Show full text]
  • Federal Political Update
    CCH Parliament Western Australian Political Update Issue: 6 of 2012 Date: 6 February 2012 For all CCH Parliament enquiries, contact: CCH Parliament Phone 02 6273 2070 Fax 02 6273 1129 A brand of CCH Australia, a Wolters Kluwer business. PO Box 4746 KINGSTON ACT 2604 Timely, Accurate, Relevant... CCH, The Professional's First Choice ISSN: 1442-7990 Western Australian Political Update A weekly summary report of political, government and legislative news Portfolio Index – please select: Aboriginal Affairs............................................................................................................................... 3 Education .......................................................................................................................................... 4 Energy............................................................................................................................................... 5 Environment...................................................................................................................................... 5 Food Industry .................................................................................................................................... 6 Foreign Affairs................................................................................................................................... 6 Health................................................................................................................................................ 6 Housing & Property..........................................................................................................................
    [Show full text]
  • The Importance of Boundaries
    The importance of boundaries Colin Hughes Emeritus Professor of Politic Science, University of Queensland Research Paper 1 (November 2007) Democratic Audit of Australia Australian National University Canberra, ACT 0200 Australia http://democratic.audit.anu.edu.au The views expressed are the authors and do not necessarily reflect those of the Democratic Audit of Australia. If elections are to be thought fair, their outcomes should correspond as closely as possible to the inputs of voter preferences. A particular percentage of the votes counted for a party should produce close to the same percentage of the seats won by that party. Down that path lie the topics of partisan bias and proportional representation with multi-member electoral districts as the most common solution. But there is a second criterion of fairness which is that outcomes should correspond to the numbers of electors or people to be represented. That criterion is often called equality, and down that path lie the topics of malapportionment and enforced equality as a solution. The two criteria may not work in the same direction.1 In Australia the problem of equality has been debated mainly with respect to the dichotomy of town and country, ‘town’ usually meaning the State capital(s) which have been invariably by far the largest urban center in each State and ‘country’ the rest, though sometimes the larger provincial cities and towns get lumped in with their local metropolis. Should town voters have the same quantity of representation, measured by the number of electors in the electoral districts, as country voters? There has also been a sub-plot, which is what this paper is about, that concerns the existence of a small number of electoral districts spread over exceptionally large areas in which the population, and consequently the numbers of electors, is relatively thin on the ground and widely scattered.
    [Show full text]
  • Management Plan for the Commercial Harvest of Kangaroos in Western
    Management Plan for the Commercial Harvest of Kangaroos in Western Australia 2014–2018 Effective for the period: 1 April 2014 – 31 December 2018 Management Plan for the Commercial Harvest of Kangaroos in WA 2014–2018 i Published by: Department of Parks and Wildlife Locked Bag 104 BENTLEY DELIVERY CENTRE WA 6983 Phone: (08) 9219 9000 Fax: (08) 9334 0498 email: [email protected] Web : www.dpaw.wa.gov.au September 2013 Cover photo: Babs and Bert Wells/DPaW Management Plan for the Commercial Harvest of Kangaroos in WA 2014–2018 ii CONTENTS 1. INTRODUCTION .................................................................................................... 1 2. LEGISLATIVE FRAMEWORK ............................................................................... 2 2.1 Commonwealth ............................................................................................ 2 2.2 Western Australia ......................................................................................... 3 3. BIOLOGY, ECOLOGY AND CONSERVATION OF KANGAROOS .................... 10 3.1 Introduction ................................................................................................. 10 3.2 Biology and Ecology ................................................................................... 10 3.3 Conservation Status ................................................................................... 16 3.4 Threats, Issues and Assessment of Impacts .............................................. 16 4. GOALS AND AIMS .............................................................................................
    [Show full text]
  • National Native Title Tribunal
    NATIONAL NATIVE TITLE TRIBUNAL ANNUAL REPORT 1996/97 ANNUAL REPORT 1996/97 CONTENTS Letter to Attorney-General 1 Table of contents 3 Introduction – President’s Report 5 Tribunal values, mission, vision 9 Corporate overview – Registrar’s Report 10 Corporate goals Goal One: Increase community and stakeholder knowledge of the Tribunal and its processes. 19 Goal Two: Promote effective participation by parties involved in native title applications. 25 Goal Three: Promote practical and innovative resolution of native title applications. 30 Goal Four: Achieve recognition as an organisation that is committed to addressing the cultural and customary concerns of Aboriginal and Torres Strait Islander people. 44 Goal Five: Manage the Tribunal’s human, financial, physical and information resources efficiently and effectively. 47 Goal Six: Manage the process for authorising future acts effectively. 53 Regional Overviews 59 Appendices Appendix I: Corporate Directory 82 Appendix II: Other Relevant Legislation 84 Appendix III: Publications and Papers 85 Appendix IV: Staffing 89 Appendix V: Consultants 91 Appendix VI: Freedom of Information 92 Appendix VII: Internal and External Scrutiny, Social Justice and Equity 94 Appendix VIII: Audit Report & Notes to the Financial Statements 97 Appendix IX: Glossary 119 Appendix X: Compliance index 123 Index 124 National Native Title Tribunal 3 ANNUAL REPORT 1996/97 © Commonwealth of Australia 1997 ISSN 1324-9991 This work is copyright. It may be reproduced in whole or in part for study or training purposes if an acknowledgment of the source is included. Such use must not be for the purposes of sale or commercial exploitation. Subject to the Copyright Act, reproduction, storage in a retrieval system or transmission in any form by any means of any part of the work other than for the purposes above is not permitted without written permission.
    [Show full text]
  • DEW Annual Report 2017-18
    Department for Environment and Water 2017-18 Annual Report Department for Environment and Water 81-95 Waymouth Street, Adelaide SA 5000 GPO Box 1047, Adelaide SA 5001 www.environment.sa.gov.au Contact phone number +61 8 8204 1910 Contact email [email protected] ISSN 2202-6673 Date presented to Minister: 28 September 2018 Public – I2 – A1 2017-18 ANNUAL REPORT for the DEPARTMENT FOR ENVIRONMENT AND WATER Contents Contents .................................................................................................................... 3 Section A: Reporting required under the Public Sector Act 2009, the Public Sector Regulations 2010 and the Public Finance and Audit Act 1987 ................. 4 Agency purpose or role ..................................................................................................... 4 Objectives ......................................................................................................................... 4 Key strategies and their relationship to SA Government objectives ................................... 4 Agency programs and initiatives and their effectiveness and efficiency ............................. 6 Legislation administered by the agency ........................................................................... 27 Organisation of the agency .............................................................................................. 28 Other agencies related to this agency (within the Minister’s area/s of responsibility) ....... 28 Employment opportunity programs
    [Show full text]
  • 13 November 1985 COUNCIL 875
    j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j VICTORIA PARLIAMENTARY DEBATES (HANSARD) FORTY-NINTH PARLIAMENT SPRING SESSION 1985 Legislative Council VOL. CCCLXXX [From October 30,1985, to November 28, 1985} MELBOURNE: F. D. ATKINSON, GOVERNMENT PRINTER j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j The Governor *His Excellency Rear-Admiral SIR BRIAN STEWART MURRAY, KCMG, AO The Lieutenant-Governor The Honourable SIR JOHN McINTOSH YOUNG, KCMG The Ministry Premier The Hon. John Cain, MP Deputy Premier, and Minister for The Hon. R. C. Fordham, MP Industry, Technology and Resources Minister for Agriculture and Rural The Hon. E. H. Walker, MLC Affairs, and Minister for Planning and Environment Minister for Health The Hon. D. R. White, MLC Minister for Education The Hon. I. R. Cathie, MP Minister for Employment and Industrial The Hon. S. M. Crabb, MP Affairs . Minister for Community Services The Hon. C. J. Hogg, MLC Treasurer The Hon. R. A. Jolly, MP Attorney-General .. The Hon. J. H. Kennan, MLC Minister for Conservation, Forests and The Hon.
    [Show full text]
  • New Online Pre-Approval Process for Travel Into South Australia From
    Tuesday 30 June 2020 16:57 pm New online pre-approval process for travel into South Australia From tomorrow 1 July 2020, a new online cross-border travel process will be in place for travellers entering South Australia from interstate. While border restrictions have been eased for people entering South Australia directly from Queensland, Western Australia, Tasmania and Northern Territory, all workers inbound to South Australia (including workers returning from rosters interstate) should complete an online form that will be available from midnight tonight at this web page. Travellers are required to complete an online questionnaire and upload the supporting letter previously used to enable border crossings. The traveller will then receive an email containing a unique code that will have to be shown at the border to ensure entry into South Australia. Importantly, there are no other changes to the Cross Border Travel Direction. While there will be an adjustment period in the transition to the new system this week, SA Police are committed to ensuring this roll-out does not adversely impact on existing essential worker movements for industry. Any issues will be managed pragmatically as they have been to date. Cross-border movements by workers should continue as planned – those moving tonight and early tomorrow will simply need to complete the process on arrival, with all others subsequently crossing the border required to complete the online process as soon as it is available. Once fully operational, this process will streamline the cross-border process and provide further operating certainty to all companies working across borders. Voluntary asymptomatic testing Given concern about community transmission of Covid-19 in Victoria, SA Pathology has seen an increase in contact from companies regarding the opportunity to have inbound workers tested, particularly those arriving from Victoria, in order to mitigate risk to their operations and reputation.
    [Show full text]
  • Retrieving Woomera's Heritage: Recovering Lost Examples of the Material Culture of Australian Space Activities
    Kerrie Dougherty Retrieving Woomera's heritage: recovering lost examples of the material culture of Australian space activities Introduction Woomera Rocket Range. Once it was a name to conjure with, carrying all the mystique of Cold War secrecy coupled with the excitement of space exploration. Yet today, the site where Australia joined the 'space club', where both Britain and Europe made their first attempts at developing an independent launch capability, is largely abandoned and virtually forgotten by younger generations ofAustralians, who associate Woomera only with a controversial US military tracking stationI and, most recently, an equally controversial detention centre for illegal immigrants.2 Established in 1947 as the long-range weapons test facility of the Anglo-Australian Joint Project, Woomera was born out of Britain's Cold War desire to develop its own missile systems and nuclear deterrent. Unable to test such weapons adequately within the narrow confines of the United Kingdom and its surrounding waters, Britain sought a secure test range within the Commonwealth and ultimately selected a location in the remote outback of South Australia which offered huge tracts of virtually uninhabited desert over which to fly missiles, drop bombs and, later (though this was not immediately in the minds of the initial developers), launch rockets into space. Woomera, at its greatest extent, was the largest overland weapons test range in the Western world, and - at one point - the busiest. Over the lifetime of the Joint Project (1947-80)3 more than 4000 British, European, American and Australian missiles and rockets and 3000 bombs and other weapons4 were launched and tested there, for both military and civilian purposes (Figure 1).
    [Show full text]