Dalrymple Bay Infrastructure set to change how it charges users of coal terminal

A proposal is seeking the power to negotiate different charges for different users.

Dalrymple Bay Coal Terminal coal stock yard and loading jetty. Picture: Daryl Wright

Dalrymple Bay Infrastructure has flagged changes to the way mining companies are charged to use the coal terminal.

DBI owns Queensland’s biggest coal terminal and submitted a draft access undertaking proposal to the Queensland Competition Authority in 2019, which would change how it runs the asset.

The QCA currently sets the rate that DBI can charge to coal miners for bringing in exports and using the facilities.

All mining companies that use the terminal are currently charged the same rate – DBI’s proposal was seeking the power to negotiate different charges for different users.

It is understood this means companies that put through bigger volumes would be able to negotiate a lower rate.

The QCA has rejected the proposal arguing it does not sufficiently limit the company’s “market power” and would not be in the public interest.

It has asked DBI to make a number of amendments before it can be approved.

If the access undertaking proposal gets the green light, DBI would be able to change how it runs the asset at the start of the next negotiating period, which will be July 1 2021.

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DBI managing director Anthony Timbrell said it welcomed the QCA’s decision on the access undertaking.

“(DBI) will implement the required changes to enable the orderly transition to a ‘negotiate-arbitrate’ pricing framework that better aligns with that used at other Queensland coal export terminals,” Mr Timbrell said.

“Australia is forecast to remain the largest exporter of high-grade metallurgical coal with Dalrymple Bay Infrastructure delivering more than 30 per cent of Queensland’s coal exports to 25 countries.

“Moving towards a commercial price setting framework will allow us to agree tariffs with individual customers that better reflect their needs and the value we provide to them, while supporting local jobs and investment in the region.”

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Originally published as Dalrymple Bay Infrastructure set to change how it charges users of coal terminal