Frydenberg scotches National Access Regime push for Port of Newcastle
The privatised Port of Newcastle will continue to set its own prices without ACCC oversight.
A push by the NSW mining industry to have the Port of Newcastle regulated under the National Access Regime – which covers ports, airports, roads and rail infrastructure – has been rejected by Josh Frydenberg, allowing the world’s largest coal export port to continue setting its own prices without oversight by the ACCC.
Acting on advice from the National Competition Council, the Treasurer on Tuesday announced the Port would not be subject to requirements under the regime despite concerns raised by Hunter Valley coal miners over the port’s “monopoly” power.
In July last year, the NSW Minerals Council made an application under the Competition and Consumer Act for the Port of Newcastle to fall under the National Access Regime after raising concerns about a series of access disputes involving the port and miners.
Mr Frydenberg said he was aware that processes relating to the National Access Regime “have in the past had the potential to take many years to reach a conclusion”.
“The National Access Regime exists to promote the economically efficient operation and investment in infrastructure,” Mr Frydenberg said.
“It has become apparent that the National Access Regime could benefit from an examination to ascertain whether the length of time that processes under the regime can take is appropriate and consistent with this objective.
“I have tasked the Department of the Treasury with undertaking that examination and reporting to me in the first half of this year.”
The decision is a coup for the Port of Newcastle, which had faced recent difficulties sourcing local finance to support its long term environmental strategies and plans to build an automated container terminal.
Mr Frydenberg said “consistent with the NCC’s recommendation I have decided not to declare the service under the National Access Regime”.
“On 23 July 2020, the New South Wales Minerals Council applied to the National Competition Council requesting that it recommend that certain services at the Port of Newcastle be declared under the National Access Regime,” he said.
“Australia’s National Access Regime, contained in the Competition and Consumer Act 2010 (the Act), facilitates third party access to significant infrastructure facilities.
The NCC’s recommendation not to declare the service was sent to Mr Frydenberg on December 18 last year.
In its application to the NCC last year, the NSW Minerals Council said “PNO has market power, as PNO is a “bottleneck” or essential service for mines in the Hunter Valley system and there are no reasonably substitutable services available for exporters from the Hunter Valley”.
“PNO therefore has a commercial incentive to maximise profits by seeking to achieve as high access charges as possible,” the application said.
“Accordingly, PNO has the ability and incentive to exert market power in the absence of declaration.”
Mining giant Glencore in 2018 made a similar push to have the Port declared.
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