The Australian Competition and Consumer Commission has issued a draft decision today proposing to allow various coal producers to collectively bargain with QR Network for access to its Moura and Blackwater rail systems.
Access to these systems is necessary to transport coal to the new Wiggins Island Coal Export Terminal at the Port of Gladstone, Queensland.
The new terminal will be constructed in stages over several years as mines in the region are developed.
"The ACCC considers these arrangements will result in significant transaction cost savings for the parties involved and help to avoid possible delays in the terminal's construction and new coal export earnings," ACCC chairman Graeme Samuel said.
"The ACCC is satisfied that the voluntary nature of the arrangements, the limited composition of the collective bargaining group and that negotiations will be confined to the below rail infrastructure necessary to support the transportation of coal to the Terminal, means that any potential detriment is minimal," Mr Samuel said.
The ACCC is proposing to authorise the arrangements for 13 years. This will allow collective negotiations with QR Network for Stages 1 and 2 of the terminal's construction and for the parties to give effect to any agreements entered into for an initial ten year term.
To assist the assessment of the ongoing competitive impact of the arrangements over the life of the authorisation, the ACCC proposes to impose a condition which requires the producers to provide written notification of any change in ownership of the rail network.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application.
More information about the Wiggins Island application for authorisation, including a copy of the ACCC's draft determination, will be available on the ACCC website.