DP World shutdown: the knock-on effect for grain harvest

With grain harvest well underway across the country, a cyber attack on a key port operator has producers bracing for “multi-day delays”. See the latest.

Australia’s reputation as a reliable agricultural trader could be jeopardised by lengthy delays at ports in the wake of a cyber attack on one of the nation’s largest port terminal operators.

And with harvest well underway in grain growing regions of the country, producers and industry alike are watching what unfolds in the coming days.

DP World, one of biggest port terminal operators, was hit by a serious cyber attack last week, resulting in a shutdown of its operations.

At the time of writing, DP World Australia was working closely with the National Cyber Security Coordinator, Australian Cyber Security Centre, and the Australian Federal Police, moving about 5000 containers out of the four affected terminals today.

Australian Federal Police are investigating the incident on the port operator which manages container terminals in Sydney, Melbourne, Brisbane and Fremantle. Picture: NCA Newswire

GrainGrowers acting general manger policy and advocacy Sean Cole said the shutdown was “another pressure point” for growers at the onset of harvest.

“Although a lot of our grain moves through bulk vessels, the fact DP World are having issues affects a large amount of containers … it certainly is a concern as it continues, with a domino effect for every container not delivered being a lost opportunity.”

Mr Cole said a significant portion of Australia’s grain exports passed through DP World, and timely resolution of the situation was paramount.

“If this went on for a few weeks, it’ll be a different story,” Mr Cole said.

“That rocks confidence in those who do buy grain from farmers and export in containers. If protracted enough, that can undermine confidence in the trade. The longer this goes on, the risk to price discounts in the market.”

National Farmers Federation chief executive Tony Mahar said the industry body would be briefed on the matter on Monday, but producers should brace for “multi-day delays” as a result.

“Of course this comes on top of disruptions at the same terminals thanks to industrial action in recent weeks,” Mr Mahar said.

“It’s fair to say farmers are worried about the picture here as harvest continues around the country.

“We’re hopeful that we’ll see these facilities back online soon. We hope that any further industrial action can be held off until backlogs are cleared.”

Operations have slowly resumed at affected terminals at Melbourne, Brisbane, Sydney and Perth.

“Importantly, the resumption of port operations does not mean that this incident has concluded. DP World Australia’s investigation and ongoing remediation work are likely to continue for some time,” DP World said in a statement.