| Whilst the decision by Justice Jargot in the Federal Court case brought by the Australian Competition & Commission (ACCC) against NSW Ports on the face of it does not bode well for the Port of Newcastle, it is clear from the response by Craig Carmody, CEO - Port of Newcastle, that they are not going to let the matter rest.
Mr Carmody said " We know there is appetite and support for a container terminal in Newcastle from NSW and international suppliers. Development of another container terminal in NSW, even whilst Port Botany still has capacity, would provide viable alternative and more cost-effective export routes for regional NSW suppliers, increasing their competitiveness and enabling Port of Newcastle to contribute even more to the State's economy"
Competition between ports is not a bad thing it provides options, "We know there is appetite and support for a container terminal in Newcastle from NSW and international suppliers. Development of another container terminal in NSW, even whilst Port Botany still has capacity, would provide viable alternative and more cost-effective export routes for regional NSW suppliers, increasing their competitiveness and enabling Port of Newcastle to contribute even more to the State's economy" said Mr Carmody
In response to the judgement, and as reported in the Daily Cargo News (DCN) the ACCC chair Rod Sims said, "This judgment provides an enormous hurdle for the Port of Newcastle to develop a container terminal to compete with Port Botany and Port Kembla, because of financial consequences arising from the [port commitment] deeds. Less competition usually results in higher charges for businesses and consumers". "Absent new entry, NSW Ports will have an effective monopoly in moving containers in NSW for 50 years. "We took this action to remove a barrier to competition in an important market, the supply of port services, which has a significant impact on the cost of goods paid by Australian consumers. Such barriers damage Australia's productivity performance," Mr Sims said. We await with interest the future actions by both the ACCC and Port of Newcastle once the Federal Court decision has been fully reviewed.
Recorded audio grabs of Craig Carmody's statement is attached for broadcast media
NSW Ports commentary
Federal Court Decision |