THE FEDERAL government says the Hamersley, Robe and Goldsworthy railway lines owned by Rio Tinto and BHP Billiton should be opened to third-party access.
This follows a recommendation by the National Competition Council which said the third party access would improve competition in the metal haulage market.
Treasurer Wayne Swan declared the third party access would be granted for 20 years starting from 19 November 2008. Although this declaration does not automatically provide a right of access, it is a step forward for iron ore companies like Fortescue Metals looking to use the rail lines.
The Australian Competition and Consumer Commission (ACCC) will impose access terms and conditions, or refuse access if it finds Rio Tinto and BHP Billiton will not be appropriately compensated.
Rio Tinto has vowed to take the matter before the Australian Competition Tribunal for review. The iron ore giants claim third party access to their rail operations will erode the efficiency of their integrated operations.
Add a comment