Re: Latest from the NSW rumour mill

[mauried@commslab.gov.au (Maurie Daly)]

In article <376c10c1.185691@news.ozemail.com.au> tmid@ozemail.com.au (TM) writes:
>From: tmid@ozemail.com.au (TM)
>Subject: Re: Latest from the NSW rumour mill
>Date: Sat, 19 Jun 1999 21:52:22 GMT

>On Fri, 18 Jun 1999 23:20:22 GMT, mauried@commslab.gov.au (Maurie
>Daly) wrote:

>>As I understand the deal , all existing coal contracts arnt open to 
>>competition until a 5 year moratorium on competition expires,which I beleive 
>>is in 2002,although it could be sooner.

>You will probably find that this has changed at the behest of the
>Minerals Council.

>>New coal contracts,ie those previously not held by Freightcorp or from new 
>>mines arnt affected,so anyone can tender.

>Newstan isn't a new mine, FreightCorp have been hauling coal from
>there for a number of years. According to your theory then that
>contract would not be open to competition until 2002. So why is
>Powercoal calling for tenders? 

>OTOH Bengalla is a new mine which started operations this year.
>FreightCorp  won that contract and is currently hauling coal from that
>mine.


>>Whether any new players will get a fair deal from the secret RAC track access 
>>regime remains to be seen.
>>
>>MD

>The coal companies know how much they pay in access charges to RAC,
>hence the IPART inquiry into RAC access charges earlier this year. If
>those companies did not know their individual access charges and those
>charges were simply part of the FC haulage charges then they would
>have been attacking FreightCorp instead. 

>TM

Im a bit confused here.
As far as I am aware none of the coal companies run their own trains,indeed 
currently the NSW State Govt prohibits them from doing so,so there is no 
requirement for any payments to be made to RAC by the coal companies.
Freightcorp pays access charges to RAC as do any other rail companies who may 
win coal haulage contracts and these charges would form part of the total 
charge for the coal contract.
The problem with the access regime is that no 
rail operator knows what their competitors are paying for the same access as 
its all commercial in confidence.
This means that theoretically Freightcorp could be given preferential 
treatment over another competitor for the same access and no one would know,ie 
the playing field can be unlevelled by State Govt direction if the outcome is 
likely to disadvantage State revenues.
For example if Westrail or Qrail won a large share of Freightcorps coal 
business ,(which is its only profitable part) then the state would see 
revenues flowing out of the state to rival Govts or private rail companies 
,(if Westrail if privatised).
Im sure they would simply sit by and do nothing about it.

MD