Our Terminals Belong To Industry By Kevin Borg, Chairman, CANEGROWERS Mackay

You’d think that two years would be sufficient time to make a business case available.

It’s a little over two years ago that Sugar Terminals Limited (STL) announced the bold move to so-called “insource” sugar terminal operations across Queensland. In other words: remove the not-for-profit terminal operator Queensland Sugar Ltd (QSL) and place itself as the sole terminal operator.

Time is ticking to the mooted handover in June 2026, and STL has remained inflexible despite clear and extensive lobbying and pushback against the move from across the sugar industry, STL has not yet made a business case available to clearly demonstrate the mooted savings. Just a repeated “trust us” line.

The move remains antagonistic to the structure that the industry put in place to deliver transparency and democracy.

The terminals were built by the sugar industry. Growers invested their own funds into the construction of the terminals to ensure strong, fluid and cost-effective storage and handling capacity to deliver our product to market.

The terminals are not there to make large returns to shareholders.

The terminals are there to be utilised by industry at a cost-recovery only basis.

In the de-regulation of Queensland’s Bulk Sugar Terminals over 20 years ago, the installation of QSL as terminal operator recognised that significant vested interest of sugar cane growers and millers in their product. We retain transparency by having a not-for-profit terminal operator, and that model has remained fit-for-purpose. The intent was that the terminals remained the property of the industry, managed by the industry, to service the industry.

By intent, that acknowledgement of ownership was extended by the intent that the shareholding of the new terminals’ “owner” STL be comprised solely of ACTIVE growers and millers. Over time, an increasing number of “dry” shareholders have taken a place in the register. While I acknowledge that STL is taking steps to remedy this departure from its constitution, the list of non-grower shareholders remains. They are there for the dividend. And it is concerning that our terminals operation could be beholden to that group.

Further, this group of dry shareholders prevents other working growers – including our next generation of young farmers from taking up a shareholding. From being able to vote in AGMs, from being able to offset their terminal costs. I encourage growers to take up shares where they can.

We have a structure that works for the majority of the industry, and it is challenging to witness this attempt to erode this consensual, democratic structure.

The effective operation of our Bulk Sugar Terminal at Mackay and other locations along the coast underpins a key commodity servicing our regional economies by giving us fluid access to overseas markets. One dollar in the sugar industry multiplies out to $6 in the community. Sugar’s success matters. It is one of the top commodities supporting the Port of Mackay.

As far as a business case goes, the industry not only awaits it, but expects it. It’s one thing to say it will reduce costs, it is another to prove it. What assurances do we have that the “insourcing” model will be more cost effective? And what if STL find they can’t do it more cost-efficiently. What then? Once the present structure is dismantled it will never be returned. This issue will be escalated as we move to June 2026.

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The Mackay Bulk Sugar Terminal was constructed with grower investment. Opening in 1957, this industry-owned asset was Australia’s first BST, helping sugar from then 2000 farms flow to markets. Photo source: CANEGROWERS Mackay archive

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