The Australian Competition and Consumer Commission has issued its first regulatory decision relating to the rail industry. The decision relates to terms and conditions on which trains can access interstate rail lines.
“The ACCC’s decision is a step towards an increased and more efficient use of the nation’s rail resources, which spells good news for businesses moving passengers and freight across borders and also for the environment”, ACCC Chairman, Professor Allan Fels, said today.
"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 terms on which train operators can get access to ARTC’s network should make it easier to operate interstate trains".
"It reinforces ARTC's role as a one-stop-shop for train operators who operate interstate train services. Currently there is a piecemeal approach where operators are required to deal with each state individually. Rail transport crossing state boundaries is cumbersome under the state-by-state administration of rail lines".
The decision is in response to an approach by the Commonwealth-owned Australian Rail Track Corporation (ARTC) which sought ACCC endorsement of a public 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 draft decision accepts the access undertaking submitted by ARTC.
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.
ARTC’s undertaking is the first one covering tracks on the existing interstate network to be reviewed by the ACCC. While the undertaking covers only a part of the network, it paves the way for possible moves by other jurisdictions to seek determinations from the ACCC in respect of tracks in their sections of the interstate network.
In its application to the ACCC, ARTC pledged a public commitment on the quality of rail lines in Australia. It also aimed to give train operators greater certainty with regard to cost and quality of service.
"The ACCC has asked ARTC to clarify certain provisions, to better define certain terms and conditions and to make changes to the dispute resolution process proposed in the undertaking.
"Once these concerns have been addressed, I am confident that the undertaking will set a framework for better rail transport outcomes for all Australians."
The ACCC invites submissions on the draft decision by 31 January and expects to issue its final decision in March 2002.