Sugar Terminals Limited has announced it has decided to insource the operations of its Bulk Sugar Terminals (BSTs), located at Cairns, Mourilyan, Lucinda, Townsville, Mackay and Bundaberg.
STL Chair Mark Gray said this decision has been taken in order to reduce costs, drive greater efficiencies, and remove a clear conflict of interest, which will better position STL to serve the industry into the future. As a result, STL has notified Queensland Sugar Limited (QSL) of its intention to terminate the Operating Agreement under which the BSTs are currently operated.
“As the asset owner STL already meets all operating costs, and approves and funds all capital investment, so collectively it makes sense that we operate these BSTs,” Mr Gray said.
“A simplified structure will streamline operations, eliminate duplication, and remove the inherent conflicts of interest in the current outsourced arrangements.”
