The Pilbara Infrastructure Pty Ltd, NCC Final Recommendation, 29
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Robe Railway Application for declaration of a service provided by the Robe Railway under section 44F(1)of the Trade Practices Act 1974 Final Recommendation 29 August 2008 Table of Contents Abbreviations and glossary of terms ............................................................................... 6 1 Council processes and final recommendation ............................................................. 13 Final recommendation ............................................................................................................ 15 2 The application .......................................................................................................... 16 The application and applicant................................................................................................. 16 The service sought to be declared .......................................................................................... 16 The facility ............................................................................................................................... 17 The service provider ............................................................................................................... 17 The decision maker ................................................................................................................. 18 Other Pilbara railway applications .......................................................................................... 19 Issues regarding the application ............................................................................................. 19 3 Access regulation under Part IIIA ................................................................................ 24 Objectives of access regulation .............................................................................................. 24 Submissions on access regulation policy ................................................................................ 25 Declaration of a service .......................................................................................................... 27 The character of regulation under Part IIIA ............................................................................ 28 The declaration criteria ........................................................................................................... 31 4 Criterion (a) – Promotion of competition .................................................................... 33 Legal requirements ................................................................................................................. 33 The dependent market(s) ....................................................................................................... 35 The market for haulage services ............................................................................................. 43 The market for iron ore tenements ........................................................................................ 49 Conclusion on criterion (a) ..................................................................................................... 57 5 Criterion (b) – Uneconomical to develop another facility ............................................ 58 Legal requirements ................................................................................................................. 58 Application and submissions .................................................................................................. 59 Alternative tests for assessing criterion (b) ............................................................................ 68 The Council’s assessment ....................................................................................................... 69 Conclusion on criterion (b) ..................................................................................................... 81 6 Criterion (c) – National significance ............................................................................ 82 Legal requirements ................................................................................................................. 82 Application and submissions .................................................................................................. 82 The Council’s assessment ....................................................................................................... 83 Conclusion on criterion (c) ...................................................................................................... 83 7 Criterion (d) – Health and safety................................................................................. 84 Legal requirements ................................................................................................................. 84 Application and submissions .................................................................................................. 84 The Council’s assessment ....................................................................................................... 85 Conclusion on criterion (d) ..................................................................................................... 88 8 Criterion (e) – Effective access regime ........................................................................ 89 Legal requirements ................................................................................................................. 89 Access undertakings ............................................................................................................... 89 Application and submissions .................................................................................................. 90 The Council’s assessment ....................................................................................................... 91 Conclusion on criterion (e) ..................................................................................................... 93 9 Criterion (f) – Not contrary to the public interest ........................................................ 94 Legal requirements ................................................................................................................. 94 Application and submissions .................................................................................................. 97 The Council’s assessment ..................................................................................................... 117 Conclusion ............................................................................................................................ 137 10 Section 44F(4) – Develop a facility for part of the service .........................................141 Legal requirements ............................................................................................................... 141 Application and submissions ................................................................................................ 141 The Council’s assessment ..................................................................................................... 142 Conclusion on section 44F(4) ................................................................................................ 144 11 Section 44H(8) – Duration of declaration .................................................................145 Legal requirements ............................................................................................................... 145 Application and submissions ................................................................................................ 145 The Council’s assessment ..................................................................................................... 146 Conclusion on section 44H(8) ............................................................................................... 147 Appendix A Public consultation ...................................................................................148 Appendix B Map of the Robe Railway ..........................................................................153 Appendix C Arbitration of access disputes under Part IIIA .............................................155 Appendix D Summary comparison of relevant regulatory and related features impacting major east coast coal transport facilities and Pilbara railways with and without access ............................................................................................................158 References ..................................................................................................................160 Figures and tables Figure 5-1 Relationship between investment and capacity by type of railway expansion ................................................................................................. 72 Figure 5-2 Schematic of the Robe Railway showing the intersection with the Hamersley Railway .................................................................................... 74 Table 5-1 Potential demand for the Robe Service ...................................................... 77 Confidential material Confidential material has been omitted from the body of this recommendation as indicated by empty square brackets [ ]. The confidential material has been included in a confidential appendix which has been provided to the decision making Minister and the Minister’s advisors. This confidential appendix is not included in publicly available copies of the recommendation. Abbreviations and glossary of terms above rail