Port boss fights back

Craig Carmody, CEO of the Port of Newcastle, spoke following the Federal Court’s dismissal of proceedings regarding Port Commitment Deeds that the Australian Competition & Consumer Commission (ACCC) have said are “anti-competitive and illegal”. However, in a media statement following the ruling, NSW Ports, which manages Port Botany and Port Kembla, highlighted Justice Jayne Jagot’s observation that the prospect of Port of Newcastle developing a container terminal in the reasonably foreseeable future while Port Botany has capacity “is fanciful”.

Carmody said: “Any suggestion that Port of Newcastle wouldn’t proceed to build the container terminal if the restrictions were lifted are baseless and misleading. Port of Newcastle maintains its real-world view that a container terminal is entirely viable – and necessary – at the Port.”

What do the ACCC object to?

The proceedings, brought by the ACCC against NSW Ports, concern the Botany and Kembla Port Commitment Deeds, which oblige the State of New South Wales (NSW) to compensate the operators of Port Botany and Port Kembla if container traffic at the Port of Newcastle is above a minimal specified cap.

Another 50-year deed, signed in May 2014, when the Port of Newcastle was privatised, requires the Port of Newcastle to reimburse the State of NSW for any compensation paid to operators of Port Botany and Port Kembla under the previously mentioned Deeds.

“Unfair restrictions”

Carmody stressed: “The judgment clearly accepts that Port of Newcastle has the ability to compete in the same market as Port Botany. The only factor preventing the Port from building the container terminal is the unfair restrictions placed on container movement above a TEU cap at the Port of Newcastle.

“If there’s any doubt we’d build the container terminal, simply lift the penalty. Enable Port of Newcastle to maximise our commercial potential freely, and watch us build it.”

The ACCC is yet to announce whether it will appeal the Court outcome.