The Australian Competition and Consumer Commission has decided not to grant interim authorisation* to users of Dalrymple Bay Coal Terminal to extend the operation of their Queue Management System, ACCC Chairman, Mr Graeme Samuel, said today.
The QMS is designed to address the imbalance between the demand for coal loading services at Dalrymple Bay and the capacity of the Goonyella coal chain to reduce the extent of significant ship queues and the resulting demurrage** costs to industry.
"The ACCC first authorised the QMS on 15 December 2005. It has always considered that queue management systems are appropriate as short-term transitional measures only. The ACCC remains of the view that until a long term solution is developed, the continued operation of the QMS has the potential to result in insufficient investment in the coal chain and substantial losses in export revenues.
"At this stage the industry has only put forward a set of broad principles which may underpin a long term solution, along with anticipated time frames for its development. The ACCC considers that the proposed extension of the QMS for a period of six months is not, in the absence of a long term solution having been developed, in the public interest.
"The ACCC considers that continuing delays in implementing a long term solution has significant flow on effects in terms of lost export revenue. When granting authorisation to the QMS in February, the ACCC advised it had significant doubts as to whether the current QMS would continue to be in the public interest beyond December 2008, without evidence of the development of a long term solution, due to the potential for significant public detriment in the form of insufficient investment and substantial losses in export revenues.
"With the applicants seeking authorisation on 14 November 2008, the ACCC and interested parties were left with very little time to consider the implications of what has been proposed.
"The ACCC recognises that some progress is being made and encourages all relevant parties to work together to finalise details of a long term solution as soon as possible. It is open to parties to request interim authorisation again once a long term solution has been developed. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted by the ACCC," Mr Samuel said.
The applicants requested an extension to the current authorisation for the QMS for a maximum of six months, on condition that a long term solution is provided to the ACCC by 31 March 2009. Urgent interim authorisation was requested due to the pending expiration of the current QMS authorisation on 31 December 2008.
For media inquiries to the ACCC Chairman, Mr Graeme Samuel, please call Ms Lin Enright, ACCC Media, on (02) 6243 1108 or 0414 613 520.
For general inquiries, please call the Infocentre: 1300 302 502.
Copies of applications for the Dalrymple Bay Authorisation application (A91107 - A91109) are available from 'Authorisations' Public Register on the ACCC's website. To receive an email update on any changes to the status of this matter, please go to the website click Public Registers, then Authorisations & notifications register, Authorisations register, name of the matter and enter your email address under Notify me.
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