CBH Seeks More Control in West Australian Ports

The Cooperative Bulk Handling Group is determined to maintain control of the grain handling system. It has recently set up its own stevedoring company to load ships at a number of West Australian ports.

Stevedoring companies load and unload cargo ships and previously most of Western Australia's grain loading has been done by Patricks.

The new company is called Australian Bulk Stevedoring (ABS) and is half owned by CBH and half by Hudson shipping.

So far its loaded grain onto one ship at Kwinana, one at Geraldton and one at Albany.

CBH logistics manager, Tim Collins, is on the board of ABS and says getting around Patricks was not the aim.

"Patricks have done a fine job over a number of years and this change is certainly not a reflection of the services they've performed."

"We believe that stevedoring grain within our own terminals is a logical extension of CBH business and we think we can do it efficiently and effectively using a combination of contracted staff as well as our own staff."

He wouldn't confirm if insurance was one of CBH's reasons for joint ownership with shipping company Hudson.

"There are a whole host of reasons and I think that the commercial details are not something I'd wish to discuss publicly."

Hudson Shipping director, Ike Eilon, says he's confident shippers and other clients will welcome more competition for grain loading.

"We will market our services... they will see what we do and how we can do that and I think they will come to us."

He wants ABS to eventually acquire all grain loading contracts at West Australian ports.

He says insurance was part of the reason CBH was interested in Hudson Shipping having half ownership of the company.

"CBH was interested partly because of the insurance that we brought with us."

"It is through our good track record with major international insurers that we received insurance cover for the stevedoring that was not available for CBH or we think not available to others."

Patricks declined an interview but a company spokesperson said they only have a very small scale of operations at the Albany port.

Patricks also operates at the ports in Geraldton, Kwinana and Esperance.

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