THE federal competition regulator has used a report to Canberra to highlight its concerns over state government limits on a Newcastle container terminal.
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In its 20th annual report on the operations of Australia’s major container terminals, the Australian Competition and Consumer Commission included a rare public statement about an investigation it began this year into the 2013 privatisation of Port Botany and Port Kembla to a consortium called NSW Ports, and the 2014 privatisation of Newcastle.
“The Port of Newcastle has developed the concept for a container terminal development at its Mayfield site,” the ACCC says in the report published on Tuesday.
The ACCC said the site had the capacity to handle 2 million standard containers a year, with the port’s shipping channel able to accommodate ships carrying up to 10,000 containers at a time.
“As has been widely reported in the media, the ACCC has concerns about arrangements made when the NSW government privatised Port Botany, Port Kembla and the Port of Newcastle that may limit or prevent the development of a container terminal at the Port of Newcastle.
“With the Port of Newcastle now looking to proceed with developing a container terminal, the ACCC is currently investigating whether these arrangements may breach the Competition and Consumer Act 2010.”
Container terminal advocate Greg Cameron said the statement was important because there was “no way the ACCC would say the fee on Newcastle containers ‘may breach the Competition Act’ without being sure of its ground”.
The ACCC investigation was confirmed in April after the Newcastle Herald obtained a letter sent to an industry body seeking information that could help it with its “concerns”.
The ACCC told the Herald yesterday it expects to conclude its investigation this year.
Welcoming the ACCC’s comments, a Port of Newcastle spokesperson said the organisation was “committed” to building its terminal, which would unlock economic opportunities across the north of the state.
“Our plans have not changed. There is strong interest in this opportunity from a number of globally-significant port operators, demonstrating the economic viability of the port’s plans to diversify in this area.”
A state government spokesperson said the ACCC was consulted during the Newcastle privatisation and that the lease arrangements did not “prohibit” a Newcastle terminal.
Mr Cameron said saying a terminal was not “prohibited” ignored the anti-competitive and financial implications of a Newcastle terminal having to compensate Botany to operate.
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Ian Kirkwood
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
