ACCC to authorise priority access to new Gove wharf for Alcan expansion

The Australian Competition and Consumer Commission will grant authorisation* to the Perkins shipping companies to provide priority use of a new heavy lift wharf at the Port of Gove to Alcan for three years.

Alcan has funded the development of the new wharf and its vessels will use the wharf to deliver equipment for the expansion of Alcan's alumina refinery at Gove.

"The ACCC is satisfied that the public benefit likely to flow from the priority access agreement outweighs potential anti-competitive detriment", ACCC Chairman, Mr Graeme Samuel, said.

The agreement will minimise any delay to the expansion of Alcan's alumina refinery at Gove.  The priority access agreement applies to the new heavy lift wharf only, and not to other existing landing facilities.  While those who use the Port of Gove may face restricted access to other existing landing facilities during the period of the Alcan expansion, these restrictions would exist even without the priority access agreement between Perkins and Alcan.

During the ACCC's assessment of Perkins' application for authorisation, it became apparent that there may be an inconsistency between the priority access agreement and a court-enforceable undertaking provided by Perkins in December 2003 to allay competition concerns arising from its acquisition of Gulf Freight Services.

Accordingly, the ACCC has accepted from Perkins a revised undertaking which resolves the potential inconsistency, while retaining the principles of the original undertaking.

More information regarding the application and a copy of the Final Determination are available by following the Authorising anti-competitive conduct and Authorisations links on the ACCC's website.  A copy of the revised undertaking from Perkins is also available on the ACCC website.

Background

*The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.