The Australian Competition and Consumer Commission has granted interim authorisation* to Dalrymple Bay Coal Terminal Pty Ltd to extend the operation of their queue management system, ACCC Chairman, Mr Graeme Samuel, said today.
"The system is designed to address the imbalance between the demand for coal loading services at the terminal and the capacity of the Goonyella coal chain.
"This imbalance has led to a large queue of vessels sitting off the coast. The ACCC is advised that recent coal chain issues and bad weather caused a large vessel queue to re-form, and that the system is expected to continue to reduce the queue over the next few months.
"The queue management system essentially rations the amount of coal each producer can export through the terminal on a pro rata basis so that the overall amount handled by the terminal better matches the amount that can be delivered by the coal chain. This is designed to substantially reduce demurrage costs that arise from an excessive queue, while maximising exports.
"The ACCC has granted authorisation to a similar scheme in the Hunter Valley. Like the Hunter Valley scheme, the queue management system is a transitional measure which aims to limit the demurrage costs associated with excessive queues until coal chain expansion projects are operational. The ACCC considers the duration of any authorisation in Dalrymple Bay will be a key issue.
"The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation. The ACCC will continue to consult with interested parties to inform its consideration of the application. The ACCC is currently looking at the impact of the queue management system on investment in the Goonyella coal chain and exports through the terminal."
More information regarding the application and granting of interim authorisation, will be available on the ACCC website.