PROJECTS

Expert Testimony for Port of Newcastle Tariff Arbitration

The problem

Glencore, a multinational commodity trading and mining company, sought arbitration with the Port of Newcastle over an increase in port charges, which it claimed was excessive.

The Port had been privatized, and declared under the Competition and Consumer Act, entitling third parties—such as Glencore—to access port facilities, particularly the channel and berths, at a reasonable price. Prices would be set through negotiation, or if the parties could not agree, by arbitration by the Australian Competition and Consumer Commission (ACCC).

How we helped

Castalia provided expert testimony that port prices under government ownership were below cost for many years. After privatization, port charges were raised towards, but not fully up to, the level that fully recovered all cost, including the cost of capital. Hence, we argued the price increase was reasonable.

Impact

The ACCC made a final determination that PNO should reduce its current charge for ships entering the port to carry Glencore’s coal by around 20 per cent to AUS$0.61. Both Glencore and the Port have appealed this ruling and Castalia is supporting the Port through the Australia Competition Tribunal Hearing.

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Level 1 Kyle House, 27-31 Macquarie Place
Australia

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

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PROJECTS          NEWS         CONTACT
© Copyright 2019 Castalia. All rights reserved.  | Credits | Sitemap

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Level 1 Kyle House, 27-31 Macquarie Place
Australia

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS          NEWS         CONTACT
© Copyright 2019 Castalia. All rights reserved.
Credits | Sitemap