BHP and Fortescue trade strokes on Pilbara rail issue

<p>Like two baseline sluggers at the Australian Open, Fortescue Metal and BHP Billiton have been returning each other’s serves over Pilbara rail access.</p> <p>No sooner has BHP lodged a Federal Court appeal on the December 18 ruling that production did not include rail lines last Friday, than Fortescue has begun courting smaller players with access to its new line and port.</p> <p>Fortescue executive director Graeme Rowley said the company had begun considering commercial arrangements for third party access after approaches by smaller firms, news.com reported.</p> <p>"We’ve always had an open access regime," he said. </p> <p>&#8220That’s been part of our policy right from the beginning.</p> <p>"We’re starting to get people now asking us what the access processes might be, so we have to start thinking about it even though its still 15-odd months away."</p> <p>Mr Rowley said freight options included third-party haulage and the use of locomotives owned by other companies, news.com said.</p> <p>If successful, BHP’s appeal to the full bench of the Federal Court will undercut a parallel Australian Competition Tribunal hearing into the same access issue.</p> <p>BHP’s appeal is thought to centre on Justice John Middleton’s rejection of findings in a 1999 case involving Rio Tinto’s Hamersley Iron splitting rail from the production process and, interpretation of the Part 111A of the Trade Practices Act.</p> <br />