The Australian Competition and Consumer Commission (ACCC) announced it has issued a draft decision proposing to approve the Capacity Framework Arrangements which form part of the integrated long term solution to the ongoing capacity constraints in the Hunter Valley coal chain.

According to ACCC, the Capacity Framework Arrangements are the result of two years of negotiations between the NSW Government and representatives from the Hunter Valley coal industry. Port Waratah Coal Services, Newcastle Coal Infrastructure Group and the Newcastle Port Corporation requested authorisation of the arrangements.

Prior to these long term arrangements, the ACCC was asked to authorise various transitional measures designed to balance the demand for coal loading services at the Port of Newcastle with the volume of coal the Hunter Valley coal chain could deliver. Over time, the ACCC became increasingly concerned that the industry was not fixing the underlying problems in the Hunter Valley.

Under interim authorisation from the ACCC, the applicants have been phasing in the Capacity Framework Arrangements over the second half of 2009, to be fully operational from 1 January 2010.

The ACCC invites submissions to the draft decision from interested parties.

29 October, 2009