The Australian Competition and Consumer Commission will not oppose an exclusive dealing notification lodged by Cooperative Bulk Handling in relation to grain transport, storage and handling arrangements in Western Australia.

The arrangements, known as 'Grain Express', offer to supply grain storage and handling services on condition that growers and marketers of grain acquire:

- grain supply coordination services from CBH; and

- transport services from CBH whilst their grain remains in CBH's custody.

"The ACCC believes there are likely to be significant efficiency benefits under Grain Express as a result of the central coordination of grain storage, handling and transportation in Western Australia," ACCC chairman, Graeme Samuel, said today.

"Following the recent deregulation of bulk wheat exports the number of accredited exporters attempting to make their own storage, handling and transport arrangements within the grain supply chain could substantially increase.

"This may create inefficiencies, placing additional costs on all participants in the Western Australian grain supply chain."

The ACCC is satisfied that the introduction of Grain Express is not likely to lead to a substantial lessening of competition in relevant markets.

In reaching its decision the ACCC took into consideration the fact that Grain Express does not limit the ability of grain growers and grain marketers to make their own grain storage, handling or transport arrangements.

Grain Express also does not foreclose potential competitors to CBH entering the market.

Further, the ACCC says grain marketers will continue to be able to take advantage of niche marketing arrangements that provide extra financial value to grain growers.

The ACCC also considers that Grain Express may stimulate competition for CBH transport contracts by providing greater certainty in respect of transport volumes.