Third Party Access under an Integrated Structure Third Party Access - - PowerPoint PPT Presentation

Third Party Access under an Integrated Structure Third Party Access under an Integrated Structure

Mr Paul Bilyk Mr Paul Bilyk

Queensland Competition Authority Queensland Competition Authority

1 August 2003 1 August 2003

QCA

QR Structure QR Structure

• Government owned enterprise

Government owned enterprise

• Single Board and Chief Executive

Single Board and Chief Executive

• Six separate business groups, eg

Six separate business groups, eg

• network access
• coal and freight services
• passenger services
• infrastructure services
• workshops
• technical services

QCA

Why vertically integrated? Why vertically integrated?

• Access regime

Access regime

• Internal restructuring

Internal restructuring

• Avoid unnecessary costs

Avoid unnecessary costs

• Retains operational efficiencies

Retains operational efficiencies

QCA

QCA Act access regime QCA Act access regime

• QR obliged to negotiate access

QR obliged to negotiate access

• Negotiate/arbitrate model

Negotiate/arbitrate model

• Prohibit preventing/hindering access

Prohibit preventing/hindering access

• Approved access undertaking

Approved access undertaking

QCA

Role of access undertaking Role of access undertaking

• Limits scope of disputes

Limits scope of disputes

• ‘

‘Safe harbour Safe harbour’ ’ for preventing/hindering access for preventing/hindering access

QCA

Authority Authority’ ’s concerns s concerns

• Internal restructuring

Internal restructuring

• Public reporting

Public reporting

• Information ring

Information ring-

• fencing

fencing

• Detailed obligations and rights

Detailed obligations and rights

QCA

Internal restructuring Internal restructuring

• Train control transferred to below rail

Train control transferred to below rail

• Stations and marshalling yards

Stations and marshalling yards

– allocate assets to below rail – assess management arrangements

• Review mechanism for restructuring

Review mechanism for restructuring

QCA

Public accountability Public accountability

• Accounting

Accounting

– costing manual – below rail financial statements – independent auditor

• Network performance indicators

Network performance indicators

QCA

Information ring Information ring-

• fencing

fencing

• Limit extent of confidential information flows

Limit extent of confidential information flows

• Limits on personnel movements between below and

Limits on personnel movements between below and above rail above rail

• Remedy for breach

Remedy for breach

– Liquidated damages – Reverse onus of proof

QCA

Detailed access obligations Detailed access obligations

• Limit scope for disputes and preferential self dealing

Limit scope for disputes and preferential self dealing

• Complexity to balance network rights and access

Complexity to balance network rights and access seekers seekers’ ’ concerns concerns

QCA

Effectiveness of access regime Effectiveness of access regime

• Undertaking and access agreements have improved

Undertaking and access agreements have improved certainty certainty

• Too early to tell without new entrant

Too early to tell without new entrant