SYDNEY Aug 20 A subsidiary of U.S. firm Bunge
Limited plans to build a port terminal on Australia's
east coast, boosting competition for the country's largest
agribusiness, GrainCorp Ltd.
Bunge Australia said on Wednesday that the terminal would be
built in Geelong, Victoria, with capacity to export 45,000
tonnes of grain a year.
GrainCorp has seen a wave of competition emerge across the
Australian east coast, a stronghold for the bulk grain handler.
Bunge has applied for planning permission to build its
second port terminal, which would have three storage silos.
Bunge opened its first Australian port in Western Australia
earlier this year.
"We decided on Geelong due to the capabilities of its port,
complementary infrastructure and good transport access for grain
supply," Chris Aucote, Bunge general manager, said in a
The bulk grain terminal is expected to open at the end of
2015, a spokesman for the company said.
The development of a new port in Victoria marks yet more
competition for GrainCorp, which also operates a port in
Geelong, and Emerald Grain, recently wholly acquired by Japan's
"This is further evidence that grain exports from eastern
Australia are highly competitive and contestable," said Angus
Trigg, a GrainCorp spokesman.
"The regulation of our ports means that GrainCorp as an
Australian-based company is increasingly disadvantaged against
the much larger multinationals behind competing ports," he said,
referring to rules that say GrainCorp must offer rivals access
to its ports.
Logistics business Qube Holdings said in March
that it had formed a joint venture with Noble Resources, a unit
of Singapore's Noble Group, to develop a new port
terminal at Port Kembla in Australia's New South Wales.
Cargill Group and Emerald Grain have been granted the option
to acquire up to a 20 percent stake each in the new venture,
Quattro Grain, which is expected to be operational by early
(Reporting by Colin Packham; Editing by Joseph Radford)