The Australian Competition and Consumer Commission has issued its final decision on a rail track access undertaking lodged by the Australian Rail Track Corporation (ARTC). The Undertaking sets out terms and conditions on which trains can access that part of the interstate rail lines in Victoria, South Australia and part of Western Australia operated by ARTC.
"The ACCC's decision to accept the Undertaking will give train operators greater certainty when seeking access to the interstate mainline standard gauge track network which links Kalgoorlie, Adelaide, Wolseley, Crystal Brook, Broken Hill, Melbourne and Wodonga", ACCC Chairman, Professor Allan Fels, said today. "It spells good news for businesses moving passengers and freight across borders and also for the environment.
"The ACCC's decision continues a process of reform in the rail industry that grew from an agreement between all Australian Governments in 1997. Clarifying the terms on which train operators can get access to the ARTC's network should make the operation of interstate trains easier and more efficient. It reinforces the ARTC's role as a one-stop-shop for train operators who operate interstate train services in the southern States".
The decision is in response to an initiative by the Commonwealth-owned ARTC to seek ACCC endorsement of an enforceable commitment that clarifies the terms and conditions on which prospective train operators can use its track. It has chosen to do this by offering an access undertaking for the ACCC's approval. The ACCC's decision accepts the access undertaking submitted by the ARTC.
An access undertaking is a legally binding commitment, given by an owner of a nationally significant facility, such as rail tracks, that sets the terms under which access to the facility will be granted. The ACCC assesses the undertaking against the criteria set out in the Trade Practices Act 1974. These criteria impose an obligation on the ACCC to ensure that the undertaking achieves an appropriate balance between the interests of the infrastructure owner and access seekers and the public interest.
ARTC's main business is managing interstate rail track. ARTC operates rail lines from Wodonga in Victoria, across South Australia to Kalgoorlie in Western Australia, as well as up to Broken Hill in New South Wales. It does not operate trains.
In its application to the ACCC, ARTC pledged a public commitment on the quality of rail lines in its network. It also aimed to give train operators greater certainty with regard to cost and quality of service. Key features of the Undertaking include:
- increases in indicative access charges are limited to a proportion of CPI
- ARTC will not discriminate between alike services competing in the same markets
- access charges will fall between a floor limit and a ceiling limit
- there is scope for flexibility in individual agreements between ARTC and access seekers
- a significant amount of information on capacity and performance will be made publicly available
- the ACCC has been given the role of arbitrator in any disputes that may arise
- various provisions will ensure that quality and performance standards will be achieved and maintained.
This is the first rail undertaking made under Part IIIA of the Trade Practices Act 1974 to be accepted by the ACCC. The ACCC issued a draft decision in November 2001 and conducted extensive consultations with interested parties. In response to comments by the ACCC and others, ARTC revised its proposed undertaking. In particular, ARTC clarified its commitment to providing a quality service and amended the dispute resolution processes.
The ACCC has accepted the final undertaking which is consistent with legislative and policy requirements.