ACCC allows variations to access undertaking for AAT terminals

The ACCC has agreed to variations proposed by Australian Amalgamated Terminals Pty Ltd (AAT) and Qube Holdings Limited (Qube, ASX: QUB) to their 2016 undertaking to the ACCC.

The ACCC agreed, for a limited three-year period, to remove the open access conditions for AAT’s Appleton Dock general cargo facility at the Port of Melbourne, in relation to arrangements between AAT and shipping lines when AAT contracts directly with those shipping lines.

AAT must not link its services to the shipping line using Qube entities, for example by providing the shipping line with special deals for Appleton Dock if the shipping line uses Qube’s stevedoring services.

“AAT has claimed that since Appleton Dock started operating as primarily a general cargo facility in January, it competes with the Port of Geelong for general cargo, and our inquiries found some customers consider the two may be alternatives,” ACCC Commissioner Roger Featherston said.

“Overall however, the market gave us mixed feedback about whether the terminals are competitive alternatives. We consented to the variation taking into account it is for a limited three year period. At the end of the three year period, the variations will no longer apply and the original undertaking will apply to AAT’s operations at Appleton Dock.”

The price dispute resolution process and regular auditing are also removed for Appleton Dock for the three-year period, which started on 25June 2018.

“Terminal users at Appleton Dock will still be able to use the non-price dispute resolution process in the undertaking. And as always, terminal users can contact the ACCC directly if they are concerned about AAT’s compliance with the undertaking,” Mr Featherston said.

The variations have also added a condition enabling the ACCC to reinstate the auditor at Appleton Dock if the ACCC considers AAT has failed to adequately resolve complaints.

The variations also include simplifying the process for AAT to vary berthing allocation rules, and changes to the price dispute resolution process to provide more certainty that proposed price increases can be implemented by the beginning of the next financial year.

/Public Release.