POPULAR WORDS

November 12, 2009

The Perth-based CBH Group has become the first company in the world to introduce an online auction site to manage port capacity allocation, fluctuating demurrage costs and demand spikes.

The site is designed to provide equitable access and manage demand from the grain export industry during busy periods at the four main grain export ports in Western Australia which are run by CBH.

Port capacity in Western Australia is sold in monthly events that take between three and five days.

Exporters bid across ports and timeslots, offering flexibility to shift demand in response to lot prices and giving the operator an accurate picture of demand for port capacity.

The site was developed by technology company Tradeslot and has gained the approval of the Australian Competition and Consumer Commission (ACCC).

“The world-first online auction site for ports is critical for the optimal use of the existing infrastructure,” Tradeslot Chief Executive Jesco d’Alquen says.

“Over or under allocation of capacity is costly for the port operator as well as for exporters trying to get their grain to the docks.”

Tradeslot anticipates expanding the site to cover the Rudd Government’s proposed Carbon Pollution Reduction Scheme (CPRS), which will introduce an emissions trading scheme.

Industries bound by the CPRS will be required to purchase permits to allow them to pollute.