The Australian Competition and Consumer Commission today issued a draft decision on the access undertaking proposed by Australian Bulk Alliance. ABA’s proposed undertaking relates to the provision of access to services at the Melbourne Port Terminal for use by wheat exporters. No existing undertaking applies to this facility.
“The ACCC’s view is that the overall approach of ABA’s proposed undertaking is likely to be appropriate. However, the ACCC has identified specific aspects where improvements should be made,” ACCC chairman Rod Sims said.
These improvements are intended to make ABA’s undertaking consistent with industry-wide standards, and to give an appropriate level of detail to wheat exporters around the arrangements already in place.
ABA has provided suggested amendments to its proposed undertaking to address issues raised by the ACCC.
The proposed undertaking includes:
• a negotiate/arbitrate model for price and non-price terms of access
• obligations to provide non-discriminatory access
• obligations to negotiate access in good faith
• provisions for arbitration of access disputes, and
• requirements to publish key port information.
The ACCC considers that current arrangements at Melbourne Port Terminal seem to be working well and has taken into account ABA’s circumstances as a relatively small operator facing competition from a larger competitor nearby. In such circumstances it is generally not necessary to require significant changes to current arrangements. Rather, the ACCC’s key concern is to ensure that arrangements meet certain minimum standards around transparency and other basic requirements for an effective undertaking.
The ACCC seeks comments from stakeholders on its draft decision. The draft decision, as well as ABA’s proposed undertaking and suggested amendments, will be available on the ACCC website.
The ACCC has a role in approving access undertakings for wheat exporters as part of the deregulation of the wheat industry. Access undertakings are intended to ensure that third party exporters are able to access the port terminals operated by vertically integrated port terminal operators, ensuring competition in the market for the export of bulk wheat.
Submissions from interested parties are invited by 31 August 2011.