Sugar Terminal Operating Agreement Termination

Qsl

THE owner of Queensland’s bulk sugar terminal facilities, Sugar Terminals Limited (STL), has announced it will take over terminal operations from not-for-profit operator Queensland Sugar Limited (QSL), issuing a termination notice for its Operating

QSL Chief Executive Officer and Managing Director Greg Beashel said the termination notice from STL came as a surprise, with no prior advice from STL or consultation with STL shareholders or industry stakeholders on this decision.

Agreement

with QSL.

Under the terms of the existing Operating Agreement, QSL will continue to be the operator of the state’s bulk sugar terminals (BSTs) until 30 June 2026.

QSL Chief Executive Officer and Managing Director Greg Beashel said the termination notice from STL came as a surprise, with no prior advice from STL or consultation with STL shareholders or industry stakeholders on this decision.

“QSL has a long and proud history of operating Queensland’s bulk sugar terminals and we are disappointed that STL would take such a unilateral action providing only vague and inaccurate justification in their public announcements,” Mr Beashel said.

“As a material shareholder of STL and the largest BST customer, QSL can see no business case that justifies the termination of the existing Operating Agreement and the insourcing of operations to STL.

“For over half a century, QSL has been a global leader in sugar terminal logistics while operating the state’s facilities on a cost-recovery-only basis, helping to minimise the costs passed back to industry as they access vital export markets.

“STL must consider the full transitional costs for shareholders, as well as the loss of the considerable ongoing savings and benefits delivered through QSL’s

not-for-profit status.”

Mr Beashel also strongly refuted STL’s position that a perceived conflict of interest provided grounds for justifying termination.

“QSL has always taken our robust ring-fencing obligations seriously, which are similar to those in other industries, to ensure QSL’s Operations and Marketing divisions are managed and operated separately. These provisions have been extremely effective, with all independent external audits confirming compliance,” he said.

QSL General Manager Operations Adam Viertel echoed Mr Beashel’s comments and said QSL was committed to continuing to provide world-class service as operator of the BSTs.

“Since the Operating Agreement with STL began in 2017, QSL has delivered over 98% of shipments in full, on time and within specification with no increase in operating costs since that time, during a challenging period which has included a global pandemic, cyclones, floods, and now the largest inflation increase in over 20 years,” he said.

“Our priority at this time is squarely focused on our employees and continuing to run Queensland’s bulk sugar terminals in the safe, efficient and reliable manner we have done for decades,” he said.