Glencore in win over Port of Newcastle charges
Full Federal Court rules in Glencore’s favour and sends a dispute over Newcastle port charges back to the competition tribunal.
Glencore has won a unanimous Federal Court ruling against the China Merchants-controlled Port of Newcastle in a long-running dispute over port charges.
After ruling in Glencore’s favour, the Full Federal Court has sent the matter back to the Australian Competition Tribunal.
The dispute was over the port’s decision to use $912 million of coal industry funding as part of its regulated asset base to determine access charges to the port.
The port has a regulated asset base of $2.4 billion which includes coal industry funding over dredging works.
Glencore argues the royalty payable should be 60 cents a tonne, while the Port of Newcastle says it is over $1 a tonne.
The dispute has run since 2015, one year after the NSW government privatised the port for $1.8 billion and immediately doubled its valuation to boost charges.
While Glencore won the case it is the only coal company that will benefit from the ruling, because the port’s declaration was ruled invalid after Treasurer Josh Frydenberg failed to make a decision last year, which automatically revoked the declaration.
It will take new legislation to ensure other coal exporters get the advantage of the latest ruling.
The Australian Competition and Consumer Commission joined the appeal on Glencore’s side. The watchdog’s chief, Rod Sims, has been a vocal opponent of the port’s access charges.
The ruling was based on the fact the port cannot charge for expenses it didn’t incur.
The full reasons for the decision are yet to be made public.
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