The Code contains a range of obligations on port operators including a nondiscrimination requirement, dispute resolution processes, ACCC approval of capacity allocation systems and certain reporting requirements.
Exemption processes under the Code
The Code provides for processes whereby the ACCC or the Minister for Agriculture may exempt a port terminal service provider from certain obligations in relation to a specified port terminal facility. On 1 October 2015 the ACCC confirmed its intention to grant exemptions to both GrainCorp and Quattro Ports at their respective port terminal facilities at Port Kembla once Quattro’s facility is complete.
Capacity allocation approvals
The ACCC also has a role under the Code to approve changes to the capacity allocation systems used by port terminal service providers to allocate their port capacity. On 3 December 2015 the ACCC approved Viterra's application to introduce long term agreements to allocate port capacity at its six bulk wheat ports in South Australia. This decision followed an extensive consultation process and a revised proposal lodged by Viterra in November 2015 which substantially addressed concerns raised in the ACCC’s draft decision to not approve the initial application. Key amendments of the November proposal included a mechanism for the ACCC to review the initial long term capacity allocation process and a reduction of the initial term of the agreements from five to three years. Viterra will now use long term agreements as the primary capacity allocation method from 2016-17, for an initial three year period. The current first-in-first-served process will be carried over with some modifications to allocate a reserved amount of short term capacity on an annual basis. 57.Container stevedoring monitoring 58.Annual monitoring report The ACCC prepares an annual report on the Australian container stevedoring monitoring industry in relation to stevedoring activity at the ports of Melbourne, Botany (Sydney), Brisbane, Fremantle, Adelaide and Burnie. On 6 November 2015 the ACCC released its 17th annual monitoring report. The report delivers three key findings about competition and efficiency in Australian stevedoring. Increased competition continued to deliver benefits to users of stevedoring services and the wider Australian community:
average stevedoring prices fell by the largest amount
observed over the history of the monitoring program
investment in terminals continued
productivity remained close to record high levels; and
service levels generally improved.
While increased competition is delivering benefits, new entrants to Australian stevedoring face challenges in establishing their industry presence. Some of these are likely to be within a stevedore’s control, while others are not. It is critical that any obstacles to shipping lines switching to new stevedores are overcome if improvements in stevedoring are to continue into the future. Change is needed elsewhere in the container supply chain to ensure the benefits of improvements in stevedoring flow to consumers and exporters. In particular, adequate regulation of monopoly port operators and road and coastal shipping reforms. 59.Water The water charge rules regulate the charges imposed on rural water users in the Murray-Darling Basin. The current rules have been in place for five years and charging practices have evolved significantly over that time. In December 2014 acting on a recommendation of the 2014 Independent Review of the Water Act 2007, the Government asked the ACCC to conduct a review of these rules. The ACCC issued its draft advice for consultation on 24 November 2015. The draft advice reflects the ACCC’s extensive consultation which included 8 regional forums, individual consultation with infrastructure operators, regulators, government departments and public submissions in response to an Issues Paper. The draft advice focuses on increasing transparency, promoting efficiency and reducing regulatory burden. The draft advice proposes to remove complexity by streamlining the application of the water charge rules by removing reference to size and ownership, combining the three different sets of water charge rules into a single instrument and provide consistent protections to all customers regardless of their operators’ characteristics. Further, the draft advice proposes to remove overly-prescriptive reporting requirements, improve pricing transparency requirements and expand protections against discriminatory charging. The draft advice also proposes to return price approvals or determinations to Basin State regulators where the state has an appropriate regulatory regime in place. The ACCC will provide its Final Advice to the Minister on the water charge rules in May 2016 following further consultation with stakeholders including submissions on the draft advice and proposed changes to the water charge rules. The ACCC is seeking submissions on the proposed amendments to the rules as set out in the draft advice. Submissions should be provided to the ACCC by Friday 4 March 2016. 61.ACCC accredits IPART On 23 September 2015 the ACCC made a decision accrediting the Independent Pricing and Regulatory Tribunal (IPART) under Part 9 of the Water Charge (Infrastructure) Rules 2010 (WCIR). This decision makes IPART the regulator of Water NSW’s infrastructure charges in the Murray-Darling Basin from 1 June 2016 for a period of 10 years. The ACCC imposed two conditions as part of the accreditation. One is to require IPART to apply pricing principles developed by the ACCC and the other is to require the sharing of information between IPART and the ACCC, to ensure that the ACCC can effectively enforce the WCIR. The same conditions were applied by the ACCC to the Essential Services Commission Victoria’s accreditation (made in 2012).The conditions aim to achieve consistent regulatory approaches across the Murray-Darling Basin and to contribute to achieving the Basin water charging objectives and principles under the Water Act 2007.
Share with your friends: |