Asciano welcomes the QCA's decision to reject the QR Network's 2010 draft access undertaking
September 23, 2010
Asciano has welcomed the Queensland Competition Authority’s (QCA) decision to reject the QR Network’s 2010 draft access undertaking.
The ports and rail operator says the decision not to approve the undertaking was based on QCA concerns about third party access to the Central Queensland Coal Network, and possible impediments to competitive initiatives given the prospect of a privatised, vertically integrated QR National.
The QCA has proposed a number of changes to the draft undertaking addressing the concerns which were raised by Asciano and other stakeholders.
“If accepted and incorporated, the changes will strengthen the existing ring fencing arrangements and allow greater scrutiny of QR Network’s decision making processes,” Asciano says in a company statement.
“We are pleased that the QCA has taken our concerns into consideration and proposed changes that will ensure a stronger competitive environment for rail operators in Queensland going forward,” it says.
The proposed changes include: all access agreements between QR Network and related-party train operators be conducted on an arms-length basis; all access seekers be provided with the same level of service and the same opportunity to access the network; and QR Network not engage in any anti-competitive, cost shifting, cross-subsidisation or price/margin squeezing.
In addition, it is proposed that QR Network will not discriminate unfairly between access seekers or access holders when making decisions to expand the network; the flow of confidential information from QR Network to other parties (in particular related parties) be restricted; auditors be approved annually and the scope of the audits be extended to include all regulatory issues in the undertaking.
“We are pleased that the QCA has taken our concerns into consideration and proposed changes that will ensure a stronger competitive environment for rail operators in Queensland going forward,” Asciano Managing Director and CEO Mark Rowsthorn adds.