Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Investor Presentation (June 2010)
16 slides from Graincorp Limited Class A's investor presentation, Jun 10, 2010
Slide 1: Wheat Exports Australia
Wheat Exports Australia 10 June 2010 15/06/2010 1
Slide 2: Eastern Australian market competition
Eastern Australian market competition • GrainCorp provides storage and handling and port elevation services in a market that is becoming increasingly competitive and internationalised – Nidera BV purchase of Pentag (2010) – Sumitomo taking full control of Australian Bulk Alliance, Melbourne Port Ter
Slide 3: Eastern Australian – more export competition
Eastern Australian – more export competition • We see additional competition for ~ 1 mmt of export handling – Containers – 0.5 mmt (NSW and QLD) - Wilmar – Gavilon - 0.5 mmt bulk (QLD) – Meaning GrainCorp faces additional ~ 1 mmt export handling competition from the current level of grain exports •
Slide 4: Regulation of bulk wheat elevation services
Regulation of bulk wheat elevation services 15/06/2010 4
Slide 5: Current regulated port elevation obligations
Current regulated port elevation obligations • GrainCorp must publish the following information on a monthly basis: – Total stocks of Bulk Wheat held at each Port Terminal – Total stocks of all other grain held at each Port Terminal on an aggregated basis – Cargo nominations – Nominated monthly expo
Slide 6: Shipping management
Shipping management CNA CNA submitted >28 submitted days prior to REP CNA process • GrainCorp recently revised an CNA placed on Shipping Stem as ‘Pending Assessment’ amended set of port protocols CNA rejected CNA assessment completed within 5 days • Consultation with customers only elicited 3 very m
Slide 7: Port performance indicators
Port performance indicators • Under the terms of the current ACCC access Undertaking, GrainCorp must publish the following key service performance indicators for the periods ending 31 May 2010, 30 September 2010, 31 May 2011 and 31 July 2011 – Vessels failing survey – Average daily road receival rat
Slide 8: Recent supply chain interface improvements
Recent supply chain interface improvements • As part of the transition process, we have worked with customers to implement the following service delivery improvements… • ….none of which were required by the access or wheat export regulation 15/06/2010 8
Slide 9: Response to the Productivity Commission Draft Report
Response to the Productivity Commission Draft Report 15/06/2010 9
Slide 10: GrainCorp’s Productivity Commission Submission
GrainCorp’s Productivity Commission Submission • GrainCorp supports removal of the WEM Act • Between 30 Sept 2010 and 30 Sept 2012 – Wheat Exports Australia move to lessen the burden of current export regulation – Move toward a system of compliance that mirrors the successful barley licensing regime
Slide 11: GrainCorp’s Productivity Commission Submission
GrainCorp’s Productivity Commission Submission • Post 1 October 2012 – Repeal the WEM Act and S. 9 AAA of the Customers (Prohibited Exports) Act 1958 – Removal of the requirement to have an access Undertaking • ACCC regulation of port access in eastern Australia should not be required after the repe
Slide 12: WEA submission to the PC states…
WEA submission to the PC states… “It is noted that the access regimes have only been in place for seven months and exporters are having issues exporting wheat from every state.” – What are the issues that relate to GrainCorp’s provision of port elevation? – Do they relate to denial of access to port
Slide 13: Our port elevator access solution
Our port elevator access solution 15/06/2010 13
Slide 14: Our commitment to transparency…
Our commitment to transparency… • GrainCorp has already committed (in its submission to the PC draft report) to put into place the following transparency measures should the access test be removed – Weekly shipping stem – Monthly publication of grain stocks at port – Publication of standard referenc
Slide 15: …and fair commercial access to port elevators
…and fair commercial access to port elevators Additionally… – Contract terms standard across all exporters (currently the case) – Port protocols become a component of the standard commercial contract – GTA access dispute resolution provisions included • These provisions could become part of the lega
Slide 16: A commercial, not regulated, industry
A commercial, not regulated, industry • GrainCorp has led the way in developing a fair and transparent process for managing the allocation of port elevator capacity – We believe our systems / processes are superior to those used by Viterra and CBH • GrainCorp, having demonstrated fairness and a desi