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TERMINALS ISSUE TAKES CENTRE STAGE
Workforce shortages, season length, mill performance, sustainability, trade, and diversification were just some of the topics tackled by grower-leaders at the CANEGROWERS Policy Council meeting in Brisbane last month, but it was the current controversy over the operation of Queensland's bulk sugar terminals that took centre stage on Day 2.
Representatives from both Sugar Terminals Limited (STL) and Queensland Sugar Limited (QSL) fronted the council separately, to put forward their cases for and against STL's recent decision to in-source terminals operations from 2026, ending a long and successful partnership with QSL. Following presentations from both organisations, council members had an opportunity to ask questions, leading to some frank, and at times tense, exchanges.
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The council later called on STL and QSL to put aside their differences and sit down together to work out a solution that is in the best interests of the industry.
CANEGROWERS Chairman Owen Menkens said growers are concerned STL's decision poses unnecessary risks to Australia’s international reputation as a reliable supplier of high quality, sustainably produced sugar.
“These terminals are a huge asset to the industry,” Mr Menkens said. “They give us a significant competitive advantage in the world market and their efficient, effective and safe operation as a service to the industry is paramount.
“Growers were the major investors in these facilities, so, we’re not about to sit quietly back and see that legacy risked in any way because these organisations are unable to agree what’s actually in the best interests of the industry,” Mr Menkens said.
The grower-led council said growers want to be assured that :
• Terminals will be operated without increased costs while ensuring efficiency and reliability
• There is a forward operating strategy and business plan in place for the terminals
• Terminal operations will always prioritise sugar access
• Pricing and access arrangements will continue to be on an equitable basis for all customers.
“And the fact that QSL is an industry-owned, not for profit organisation has given growers confidence that these assets are being managed in the best interests of the industry.
“It is now up to STL to demonstrate to growers that they can do a similar or better job, possibly at lower cost. But we have yet to be convinced of that.
“If there is a better operating model then surely STL and QSL as two organisations that should be thinking in the best interests of the industry should resolve the situation in a professional manner.
