Glencore and the Australian Competition and Consumer Commission (ACCC) have taken further legal action regarding pricing at the Port of Newcastle, appealing the Australian Competition Tribunal’s decision made last month.
The Tribunal’s decision, which ended a four-year legal battle initiated by global mining giant Glencore, noted the importance of ensuring that prices be at a level that provides “an incentive to a service provider to efficiently (and in a timely fashion) invest in maintaining and improving infrastructure necessary to provide facilities at the Port”.
The Tribunal also expressed concern that “prices that are too low can lead to non-investment or delayed investment, or the non-provision of some infrastructure services”.
Both Glencore and the ACCC commenced separate, but overlapping, appeals in the Federal Court this week against the competition tribunal’s decision.
Port of Newcastle CEO Craig Carmody said it was disappointing to see further uncertainty for everyone.
“Port pricing should remain subject to an appropriate and efficient commercial relationship between the port and its customers,” Mr Carmody said.
The major trade gateway handles 4,600 ship movements and 166 million tonnes of cargo each year, contributing more than $29 billion to the New South Wales economy annually; however, the Port of Newcastle says legal action is hindering investment into the Hunter’s coal industry.
“The endless legal battles erode confidence in investing in infrastructure, be it at the mine or at the port, in one of Australia’s most important export industries.
“We will continue to sit down with our customers to discuss our services and pricing, respecting the need for all parties to return to a normal commercial relationship.”
