ACCC gives final approval to long term port solution
The Australian Competition and Consumer Commission has issued its final decision approving the port-based Capacity Framework Arrangements which form part of the integrated long term solution to the ongoing capacity constraints in the Hunter Valley coal chain.
"For the first time, coal producers have signed long term contracts with Port Waratah Coal Services to secure capacity at the Port of Newcastle," ACCC chairman Graeme Samuel said today. "This will allow producers and terminal operators to make more accurate and timely investment decisions to expand capacity and provides greater certainty to new entrants."
The arrangements also support centralised modelling of contractable coal chain capacity and monitoring of coal chain performance standards, which should prevent excessively long vessel queues forming offshore in the new contracting environment.
"The Capacity Framework Arrangements are the result of two years of negotiations between the NSW Government and representatives from the Hunter Valley coal industry," Mr Samuel said.
Port Waratah Coal Services, Newcastle Coal Infrastructure Group and the Newcastle Port Corporation requested authorisation of the arrangements at the end of June this year.
Under interim authorisation from the ACCC, the applicants have been phasing in the Capacity Framework Arrangements over the second half of 2009, to be operational from 1 January 2010.
Another key component of the long term solution in the Hunter Valley is Australian Rail Track Corporation's proposed rail network access undertaking, which is currently being considered by the ACCC in a separate process.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application.
