Port of Newcastle has accused the NSW Minerals Council of threatening the viability of its container terminal project by launching a new challenge to its right to set prices for customers who use its infrastructure.
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The Minerals Council launched the action with the National Competition Council this week seeking to overturn a ruling supporting the port's right to set prices.
The Australian Competition Tribunal announced last October that the private port operator could charge Glencore, the port's biggest exporter, $1.0058 per gross tonne in navigation service fees, up from $0.7809.
The decision set a price point for coal ships which is more than double what the port was charging before it was privatised in 2014.
It followed the tribunal's review of an Australian Competition and Consumer Commission ruling in 2018 that the port should cut the fees it charges Glencore by 20 per cent to $0.6075.
The port said the Minerals Council's new application would damage the regional and state economies.
"The substance of the (Minerals Council's) application was judged to be without merit by both the Australian Government peak specialist competition adjudication bodies, the National Competition Council and the Australian Competition Tribunal, who both agreed with Port of Newcastle within the last 12 months that the port was entitled to a reasonable return on port assets," a spokesman said.
"Port of Newcastle would not expect any different outcome on a repeat of exactly the same application."
The port said the re-opening of matter would place significant uncertainty on proposed investment in infrastructure projects such as the container terminal and multi-purpose deep water terminal projects, which total over $3.3billion.
"The continuous uncertainty has a significant chilling effect that will stall investment and diversification plans at a critical time for the local and regional economy," a spokesman said.
The Minerals Council challenge represents the 50th legal action in the long-running dispute that dates back to 2015.
It is expected the Mineral's Council Challenge could take at least seven months to resolve.
A port industry source said coal companies had not paid the navigation charge since the port's privatisation. Rather, it was paid by shipping lines and agents.
"This action is economic vandalism of the Hunter's recovery efforts," he said.
In response, the Minerals Council said it had been forced to take the action because its members had been unable to reach agreement with the port since it was leased in 2014.
"The Hunter mining industry has been unable to reach agreement with the port operator on reasonable pricing and access terms and conditions, with price increases of around 117 percent imposed by the Port operator as a largely unregulated monopoly provider," a spokesman said.
"The port operator has also rejected industry attempts to negotiate constructively on an outcome that might work for the coal sector and the Port.
"Declaration will mean that these discussions would have to occur, and that the ACCC could resolve any outstanding issues if agreement on reasonable terms and conditions can't be reached."
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Matthew Kelly
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
