CANEGROWERS welcomes certainty for Queensland’s bulk sugar terminals
CANEGROWERS, representing the majority of Queensland’s sugarcane farmers, has welcomed the confirmation that QSL will continue to operate the state’s world-class bulk sugar terminals.
“The six bulk storage and port facilities, owned by industry through Sugar Terminals Limited (STL), are a crucial point of difference as we compete with other sugar-producing countries to get the best returns from the market,” CANEGROWERS Chairman Paul Schembri said.
“We welcome the news that the STL Board has expressed confidence in QSL’s ongoing operation of the terminals by agreeing on a term-sheet for an agreement which will run for an initial five-year term with a rolling three-year term after that.”
Negotiations over the future operation of the terminals has happened at a time when the marketing of Queensland sugar is transitioning into a more competitive environment, a change which CANEGROWERS has been championing.
“The re-appointment of QSL as the terminal operator, under an arrangement refined to address any potential conflicts of interest, provides crucial long term stability for that important part of the export process,” Mr Schembri said.
“The new arrangement includes assurances of structural transparency within QSL through a separation of the marketing and logistics operations within the company. This should give confidence to all marketers who will access the six terminals.
“It means that whichever marketing pathway our growers choose for their economic interest sugar, their miller or QSL, they can have confidence that their sugar will be treated fairly.
“This is a tremendous outcome for growers, millers, marketers and therefore the industry as a whole.”