Clear expectations as STL takes over terminal operations

CANEGROWERS CEO Dan Galligan said growers had not forgotten the concerns raised when STL announced its decision to bring terminal operations in-house, but the focus now was on how the new model performed. 

“Growers largely funded this infrastructure, so they have every right to expect it will continue to serve the industry it was built for,” Mr Galligan said. 

“From 1 July, STL will be responsible for both owning and operating the terminals. That means it will also be responsible for making sure they are run safely, efficiently and fairly.” 

Queensland’s six bulk sugar terminals at Cairns, Mourilyan, Lucinda, Townsville, Mackay and Bundaberg are critical links in the export supply chain and have helped build Australia’s reputation as a reliable supplier of high-quality sugar. 

Mr Galligan acknowledged QSL’s long successful record as terminal operator and said growers would expect that high standard to be maintained. 

“QSL has operated these terminals for decades and played an important role in building the reliability Queensland sugar is known for,” he said. 

“Growers will expect that same level of reliability through the transition and into the future.” 

Mr Galligan said growers would be watching closely to see how the new arrangements worked in practice. 

“They will expect reliable operations, appropriate maintenance, transparent low cost pricing and fair treatment for every marketer,” he said. 

“No marketer should receive preferential treatment \when it comes to storage, access, scheduling or pricing. 

“These are shared industry assets and they need to keep working for the whole sugar industry, not for the benefit of any one company or commercial interest.” 

Mr Galligan said STL would also need to show that the efficiencies promised through insourcing were real and that the benefits flowed back to the industry. 

“Growers will also expect clear reporting on costs, maintenance and terminal performance so they can see whether the new model is delivering what was promised,” he said. 

“We want the new model to work. 

“But growers will judge it on the results – reliable terminals, fair access, transparent costs and a clear commitment to keeping sugar first. 

“CANEGROWERS will be paying close attention and will speak up if those expectations are not being met.”