NO.015

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 consortium’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.

CANBERRA

23 March 2000