THE Australian Competition and Consumer Commission (ACCC) has raised concerns about restrictions on port asset sales in New South Wales imposed by governments that have "the purpose or effect of substantially lessening competition".
The ACCC is "continuing its engagement with parties involved in the privatisation of ports in New South Wales", reports Sydney's Transport & Logistics News.
The ACCC raised the issues in its just-released container stevedoring monitoring report No 16.
"The ACCC encourages early engagement from state governments on any competition issues that may arise in relation to the proposed sale structures or sale conditions for any monopoly or near-monopoly assets, including any restrictions on competition proposed in the arrangements.
"Such restrictions may be unlawful and could be unenforceable," the ACCC said.
The construction of container terminal at the Port of Newcastle would compete with Port Botany initially for the northern NSW trade. It would also provide the base-load freight to build a rail freight bypass of Sydney, between the Port of Newcastle and Glenfield.
Where Port Botany is a truck-based container terminal, Newcastle would be rail-based. The NSW government forecasts a four-times increase in container truck movements between Port Botany and western Sydney by 2046.
Trucks are forecast to carry seven million TEU by 2046 and rail will carry 3.9 million TEU. No details have been offered as to how rail capacity will increase from the forecast 1.6 million TEU in 2031. But if the rail capacity target is not reached, there will be even more truck movements.
Port Botany suffers a competitive disadvantage, because containers are trucked between the port and western Sydney, and goods are then trucked between western Sydney and northern NSW.
Newcastle's natural advantage of proximity to market would be defeated if a fee is placed on container movements.
In its report, the ACCC said that its attention was drawn to port lease arrangements from an article in The Newcastle Herald published on May 11.
The Herald reported: "The government has confirmed it leased Botany with a clause that prevented Newcastle from competing against it with a container terminal. And the Newcastle lease is believed to contain a similar undertaking."
Leasing arrangements for Port Botany and the Port of Newcastle reflected the government's policy that Port Kembla will be the state's next container terminal once Port Botany reaches capacity.
Under the government's heavy vehicle transport forecasts, there is no container terminal at Port Kembla in 2046 when Port Botany container movements are set to reach 10.9 million TEU, up from 2.2 million TEU in 2013.
One solution to competition problem would be for NSW Ports and Port of Newcastle Investments to combine their resources and become a rail freight operator for containers between Newcastle and an intermodal terminal at Eastern Creek or Badgerys Creek.
General freight that currently enters Sydney by truck can also be carried by rail. A rail freight bypass is NSW government policy.
WORLD SHIPPING
07 November 2014 - 23:15
Australian competition regulator probes restrictions on NSW port assets
THE Australian Competition and Consumer Commission (ACCC) has raised concerns about restrictions on port asset sales in New South Wales imposed by governments that have "the purpose or effect of substantially lessening competition".
WORLD SHIPPING
07 November 2014 - 23:15
Australian competition regulator probes restrictions on NSW port assets
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