Ports Australia has warned that a Federal Court ruling regarding fees at the Port of Newcastle has implications for both ports and investors.
The Australian Competition and Consumer Commission (ACCC) made a declaration on port access services after coal exporter Glencore objected to major price increases, which the Port of Newcastle sought to overturn.
However, the court ruled against the port’s application. Ports Australia chief executive Mike Gallacher said the decision raised “serious questions about the long term economic viability of private investment in government’s privatisation or leasing of critical infrastructure”.
Mr Gallacher said the Federal Government should consider changing legislation to correct the situation.
The Australian Logistics Council has added its criticism and queried the ACCC’s involvement in port pricing. Managing director, Michael Kilgariff said the decision seems to point to increasing ACCC involvement in pricing and access at ports.
“If that is going to be the case, then it is imperative that the ACCC ensures it is properly resourced with personnel who have had exposure to and experience in dealing with the complex and unique nature of these infrastructure assets. Any regulatory role played by the ACCC in the freight logistics sector must be fit-for-purpose.”
He said that imposing regulatory frameworks designed for other industries will do nothing to enhance supply chain efficiency.
