I have today approved the rail access regime for services on the line from Tarcoola, northwest of Adelaide, to Darwin in the Northern Territory.
The regime establishes the right of third parties to negotiate access to use the railway infrastructure. It sets out the right and responsibilities of both access seekers and the infrastructure owner. It covers access terms and conditions, the negotiation process and dispute resolution.
The access regime is certified in accordance with s.44N of the Trade Practices Act 1974.
The regime will facilitate competition in the rail freight market between Darwin and the rest of Australia and increase competition in the existing market for road, air and sea freight services. It achieves a balance between providing the certainty necessary to ensure the project is viable, and the wider public interest in access being provided with fair and reasonable terms and conditions.
The National Competition Council (NCC) received the application for certification from the Northern Territory and South Australian Governments on 18 March 1999. Since then, the NCC has undertaken an extensive period of consultation with the Governments and interested parties.
I congratulate the NCC and the Northern Territory and South Australian Governments for reaching agreement on this access regime which will provide a stable regulatory environment for the Alice Springs to Darwin railway – a project which will play an important role in the economic development of the Northern Territory and facilitate improved trade links with the rest of Australia.
The thirty year certification period for the access regime has been granted because of the consortiumÂ’s need for certainty in its operation of the rail facilities. Without that certainty in the regulatory regime it is uncertain whether the project could continue. This decision does not in any way set a precedent for the length of future certifications.
This access regime, and the benefits that it will contribute in terms of a more competitive freight market, is a practical demonstration of the significant gains that are being realised from National Competition Policy, particularly for regional Australia.