The Australian Competition and Consumer Commission has issued a draft decision that could see more competition on Australian wharves, potentially reducing the costs of importing vehicles into the country.

The commission is proposing to grant conditional authorisation to Australian Amalgamated Terminals Pty Ltd to allow it to operate motor vehicle and general cargo handling facilities at five ports around Australia.

Importantly, the first condition would provide a mechanism for stevedores other than AAT’s shareholders to seek access to AAT’s terminals. The automotive industry, including the FCAI, has raised concern in the past over the virtual monopoly AAT held over vehicle handling facilities.Ports

AAT applied for authorisation as part of the July 2009 settlement of court proceedings in which the Federal Court held that former P&O and Patricks stevedoring companies, and others, entered into anti-competitive agreements in connection with the establishment of AAT, in contravention of the Trade Practices Act 1974.

“Given AAT’s vertical integration in stevedoring, the ACCC is concerned there is an incentive to deny access to its terminals to new entrants in competition with its shareholders,” ACCC chairman, Graeme Samuel, says.

“Since the establishment of AAT, no new entrant stevedore has sought to operate at any of AAT’s terminals.”

“The first condition is required to ensure there is a transparent and independent process so that stevedoring businesses have a better opportunity to use AAT’s terminals and provide competition to AAT’s stevedoring shareholders at ports in Brisbane, Port Kembla, Melbourne, Launceston and Adelaide.

“It provides that a stevedore and AAT first try to reach a commercial agreement, with the potential for the ACCC to act as an arbitrator if the parties cannot agree.”

The ACCC is now inviting comments on the draft determination particularly from port corporations, stevedores and terminal end users on whether the proposed conditions will address concerns and how they will support the existing mechanisms provided by some port corporations in their oversight role of AAT.

The ACCC’s draft determination and information about making a submission will be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister and by following the links to this matter.

Parties wishing to make submissions should do so by 2 November 2009.

source: Autofile