In an opinion piece on the AFR, Rod Sims says Pacific National can’t be allowed to have influence or control over new intermodal terminals on the east coast
Former ACCC Chair Rod Sims says the Inland Rail mustn’t solidify an east coast rail freight monopoly when it comes to productivity.
In an opinion piece for the Australian Financial Review (AFR), Sims says productivity and efficiency savings from the federal government’s investment project in the Inland Rail will be diminished unless new intermodal terminals being constructed in Sydney, Brisbane and Melbourne become independently owned and operated.
Sims says the Inland Rail has many positives, including its ability to allow the double-stacking of containers and shorten the travel time between Melbourne and Brisbane by 10 hours.
He says the key issue centres around whether new intermodal terminals in Sydney, Melbourne and Brisbane will be independently owned and operated, allowing them to function on an open access basis.
“Only then can rail freight competition occur, rail freight prices fall and rail increase its share of the freight task against road, which are the objectives of the Inland Rail,” Sims says in his AFR piece.
With the project having the potential to lower rail freight costs, Sims says currently Pacific National dominates the container rail freight market on the east coast.
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If this can be maintained, Sims says PN can most likely keep most of the gains from the Inland Rail for itself, removing competitors in the market.
“The new interstate intermodal facility at Moorebank, near Sydney, has a degree of industry player vertical integration due to the historical involvement of Qube,” Sims says.
“But the latter is a negligible player on the interstate rail freight market. PN would be free to be a customer, but it will have no direct influence, ownership or control over the facility. It must stay that way.”
Sims says he isn’t criticising PN. Instead, he just wants to ensure the rail freight operator doesn’t cement a near monopoly over the eastern coast market.