1. Purpose

To consult with Members on 2024/25 WA Location Differentials (LDs).

2. Background

• GTA publishes the LDs for the storage locations of members in QLD, NSW, VIC, SA and WA annually
  to enable participants using the GTA Contract No. 2 Grain and Oilseeds in Bulk – Basis Track to price
  grain at up-country sites.
• GTA LDs for Q LD, NSW and VIC have been published for 2024/25 season via Member Update 12 of 24 on the 9th of August 2024.
• GTA LDs for SA have been provided published for the 2024/25 season via Member Update No. 17 of 24 on the 17th of October 2024.
• The industry has agreed to use Viterra and CBH Group published freight rates for South Australia (SA) and Western Australia (WA) each year, subject to approval by the GTA Commerce Committee.
• The GTA Commerce Committee has received CBH information for the WA LDs for the 2024/25 season. Members have an opportunity for Member Submission on WA LDs. A comparison of 23/24 versus the proposed 24/25 GTA LDs as proposed here.
• Given the late stage of the season, the Committee agreed a short submission period is appropriate.

3. Review of Location Differentials & Amendments for WA

• As per the Board approved LDs Standard Operating Procedure (SOP), LDs for sites in WA that have access to company owned seaport terminals (CBH and Bunge sites) are based off the relevant Estimated Marketer Freight Rates for their storage networks. The rates for 2024/25 have been provided to GTA and subsequently to the Commerce Committee for analysis and review.
• For non-CBH sites, (where the sites main port is a CBH port) the agreed methodology (per SOP) “In WA where a site is not owned by CBH, the LD shall be calculated using the road distance to port of the particular site based on Google Maps based on the rate/t per km rate for adjacent CBH site/s adjusted for distance.”
• GTA has consulted with site owners to confirm recommended LDs for the respective sites.
• Where a site exists in a town with a CBH site, all sites in that town will be allocated the CBH LD, in accordance with the SOP.

The current GTA Location Differentials can be found at:
www.graintrade.org.au/location_differential_tables

4. Submissions – Due 25 October 2024

• All industry feedback on the above issues must be received by COB Friday, 25 October 2024 and be forwarded to submissions@graintrade.org.au
• All other submissions should be presented on the GTA Technical Committee Submission Form.

5. Further information

For further information about the GTA Location differentials please refer to GTA Fact Sheet – Understanding Location Differentials www.graintrade.org.au/fact_sheets