Australia’s sugar industry is a cornerstone of the nation’s agricultural sector and we owe much of our global competitiveness and domestic efficiency to the network of sugar storage and export facilities that are a central part of many Queensland ports.
For Mackay, they are a focal landmark on our coastal horizon: the familiar, massive triangular sheds that let Mackay’s growers and millers store large quantities of raw sugar. Built by industry for industry.
Owned by Sugar Terminals Limited (STL), they are currently operated with great success by Queensland Sugar Limited. Going forward, STL has decided to terminate the Operating Agreement with QSL, and as of 1 July 2026, will begin insourcing operation of the terminals themselves. This is now less than a year away.
The insourcing move has not been well-received by many industry stakeholders, and a clear demonstration of its industry benefit has yet to be coherently delivered by STL. One of the problems around this decision has been a lack of transparency around the financial implications of this decision. Saying STL can do it cheaper is not the same as demonstrating how.
To that end, Mackay Canegrowers has met in recent weeks with both QSL and STL management to hear about progress on the handover of the terminals. As grower representatives, we continue seek clarity and confidence that, come the mooted July 2026 handover, all requisite systems and staffing will be in place to ensure that Queensland’s sugar terminals will operate with the same outstanding efficiency that we expect. We will continue to meet and discuss this important issue.
For many years, Queensland Sugar Limited (QSL) have operated the terminals as marvels of logistical coordination, with high plant availability rates and assured quality playing a central role in this process, safeguarding the reputation of Australian sugar as a clean, green and high-quality product. The correct operation of the terminals’ advanced loading systems ensures a rapid turnaround that is vital for meeting stringent international shipping timetables.
This is a major point in time for our industry, and I can’t emphasise the significance of this insourcing decision, right or wrong, it is the direction which STL has chosen to follow and will steer the way forward for our industry. Australia’s standing as a trusted supplier of sugar to the world is built on the reliability and performance of our sugar terminals. With international buyers demanding timely deliveries and assured quality, the terminals’ ability to consistently meet these expectations is central to maintaining and growing Australia’s market share.
These sprawling complexes are not simply storage and handling facilities, they are choke point assets, the arteries through which the lifeblood of the sugar industry flows, connecting remote cane fields to bustling international markets.
The significance of our Australian sugar terminals cannot be overstated: they are key to our reputation as a reliable supplier of sugar. Situated strategically along Queensland’s coastline—with major installations in cities like Townsville, Mackay, Bundaberg, and Cairns—these terminals serve as collection and distribution points for the bulk of the raw sugar produced in Australia, of which about 80% is exported to key markets like Japan, South Korea, Indonesia, UK and US. That feat would be impossible without the efficiency and capacity offered by these terminals, allowing up to half of Australia’s sugar to be stored safely when prices are low, until better world market opportunities present themselves, therefore adding substantial value to our industry. That storage capacity is almost unique in the global sugar trade.
These terminals were built and paid for by our forefathers for the benefit of our industry, to provide low-cost but high-quality storage and handling of our sugar production and not to return a premium dividend to a shareholder base which unfortunately is no longer 100% industry owned.
From the cane fields of Queensland to tables around the world, Australian sugar’s journey depends on the seamless operation of the country’s sugar terminals. They are strongholds of efficiency, quality, and resilience—pillars supporting both a proud agricultural tradition and the ambitions of a modern, globally connected nation. As trade winds shift and new challenges arise, the importance of these terminals in safeguarding Australia’s sweet success story is as critical as ever.
Australia’s bulk sugar terminals are key to our reputation as a reliable supplier of sugar. Photo credit: Kirili Lamb
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