NEARLY two years of anxiety for canegrowers across the state appeared to be drawing to a close this week when an agreement was struck to keep a non-profit industry group in control of the state's sugar terminals.

On Tuesday the boards of Sugar Terminals Limited and Queensland Sugar Limited agreed upon a term-sheet for an Operating Agreement to underpin a new bulk sugar terminal operating model for Queensland's sugar industry.

While Bundaberg and Maryborough growers have been more sheltered from moves by three millers including Wilmar to stop selling sugar through QSL than regions further north, Bundaberg Canegrowers chairman Allan Dingle said the deal was a relief because it meant long term security for the industry.

"We've seen with the wheat industry what can happen when people try to dominate and gain control of terminals," Mr Dingle said.

"We don't want that to happen to sugar."

These fears surrounded a lack of transparency; "you wouldn't have any idea what the mills sold the sugar for".

"What this has done is ensure both growers and millers have longer term security knowing those assets are going to be utilised to the best of the industry, rather than just a chosen few."

STL chairman Stuart Gregory said all stakeholders would benefit from the agreement, which would be confirmed once legal binding documentation is finalised, executed and approved by the boards of STL and QSL.

"Importantly, STL intends to continue to provide open access to its terminals for all market participants while gaining increased oversight and control over its assets and strategic risks through the revised model," Mr Gregory said.

The agreement will mean marketing remains "in the hands of someone who knows how to operate it, understands it, and has done a good job in the past," Allan Dingle said.

QSL is a not-for-profit group owned 50-50 by growers and millers.

"Our experience perfectly positions us to continue operating the terminals for the benefit of the entire Queensland sugar industry as we enter a new era of marketing competition," QSL chairman Guy Cowan said.

Despite being under investigation by the ACCC itself, milling company Wilmar suggested the competition regulator should be "watching closely" when news of the agreement broke on Tuesday.

Bundaberg Sugar was not able to provide a comment when the NewsMail made contact on Tuesday.

THE AGREEMENT

Edited summary from a statement by Queensland Sugar Limited and Sugar Terminals Limited:

QSL will continue to operate the terminals for STL under a long term strategic Operating Agreement, proposed to commence 1 July 2017, ensuring no disruption to terminal operations.

The Operating Agreement will have an initial five-year term with a three-year rolling term following that, providing the sugar industry with confidence and certainty.

All marketers and terminal users, including QSL, will contract directly with STL for access to the company's bulk sugar terminals.

Concerns about conflict of interest and confidentiality are addressed through:

QSL splitting its operations into two divisions, Marketing and Logistics;

QSL agreeing to "ring fencing" provisions in relation to separate management and operation of these divisions, consistent with provisions applied to similar structures in other industries; and

STL contracting directly with terminal users regarding terminal access via Storage and Handling Agreements.

STL will appoint two additional independent directors to bolster the Board, subject to shareholder approval, in early 2017.