PROJECTS

Expert Testimony for Port of Newcastle Tariff Arbitration, Australia

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.

Our team

Alex Sundakov

Alex Sundakov

Executive Director
Kaye Miralles

Kaye Miralles

Manager
Peter Hoogland

Peter Hoogland

Director
Stéphanie Tatunchak

Stéphanie Tatunchak

Senior Analyst

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
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

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

PARIS
+33 (0)1 84 60 02 00
64-66 Rue des Archives
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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WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

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        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap