The ACCC has made its Final Decision to accept a new access undertaking from the ARTC for the Interstate rail network.
The new undertaking will provide an updated regulatory framework and an enhanced platform for engagement between ARTC and its customers through to 2029.
It will substantially improve dialogue between ARTC and its customers about ways to improve the efficiency and use of the network, including:
- better consultation and planning on capital expenditure in ARTC’s proposed new investment Strategy
- an annual ARTC stakeholder forum, to be attended by users of the network and ACCC staff
- additional performance and financial reporting.
This undertaking will regulate a rail monopoly that faces competition from road freight and promote efficiency in Australia’s supply chains through:
- a move to eight reference services from the current single service
- a practical approach to current pricing that is tied to CPI and gives certainty to ARTC and customers
- an improved undertaking in terms of disclosure and the use of commercial arbitration
- collaboration between ARTC and its customers to enhance the usage and efficiency of rail.
The new undertaking provides a platform for rail users to advocate changes that will improve the way crucial parts of Australia’s supply chain work.
The ACCC Final Decision and the 2024 Interstate Access Undertaking are available on the ACCC website at: Interstate Access Undertaking 2024
Background on the 2024 Interstate Rail Access Undertaking
The new access undertaking provides the standard price and other terms that ARTC will offer to freight and passenger rail operators for access to the rail lines that run between Melbourne, Sydney, Brisbane, Adelaide and Kalgoorlie.
It includes commitments by ARTC to:
- move to 8 core ‘Reference’ services that have a CPI-linked price cap (rather than 1)
- hold an annual forum with stakeholders to discuss ways to improve access to and operations of the network, including input from a data working group and updates on ARTC’s actions and engagement at national forums on interoperability and harmonisation of rail
- complete an annual consultation and publication of a ‘Rail Network Supply Chain Optimisation Strategy’
- move to a commercial arbitration model to resolve access disputes
- publish additional transparency and reporting measures.
This is the first time the voluntary undertaking has been substantively changed since 2008 and it will run until the end of June 2029.
Legal framework
The ACCC can accept or reject voluntary access undertakings under subsection 44ZZA(3) of the Competition and Consumer Act 2010 after assessing whether they meet the objects of Part IIIA of the Act and other statutory criteria.
The ACCC assessment includes consideration of:
- whether the access undertaking promotes economically efficient operation and use of investment in infrastructure
- the interests of both the provider and users of the service
- the public interest.
Once accepted, the terms of voluntary undertakings are enforceable in the Federal Court.
The undertaking was first lodged by ARTC on 12 December 2023. Since that time, the ACCC consulted twice through a consultation paper and Draft Decision, receiving a total of 19 public submissions.
On 24 October the ACCC issued an Amendment Notice to ARTC outlining changes that would improve the operation of the undertaking, including the addition of an annual stakeholder forum. ARTC accepted the proposed changes and incorporated them into a Revised Undertaking.
Broader context
- Ensuring the Interstate network runs effectively contributes to Australia’s supply chain efficiency and other policy outcomes.
- The government has a policy to encourage modal shift so that more freight moves on rail.
- The ACCC has recommended ARTC engage with the rail industry to address some issues raised but not resolved in coming years (see appendix B to the Final Decision).
- The ACCC expects ARTC to consider moving to a cost-based approach to pricing in the future, particularly once the scope and cost of Inland Rail is known.