ESC rejects Pacific National, Connex revised access plans

<p>The Essential Services Commission yesterday (June 1) announced it had rejected revised access arrangements to the Victorian rail system submitted by operators Pacific National and Connex.</p> <p>In its final decision on the rail access regime, the ESC decided to not approve Pacific National’s proposed access arrangements for its country Victorian rail network and the South Dynon terminal, as well as Connex’s proposed access arrangements for services to third parties on the metropolitan rail network.</p> <p>Following its rejection of the submitted access arrangements, the commission will now establish rail access arrangements to be in place by July 1, 2006.</p> <p>As part of this process, the commission will develop and finalise rail access prices as part of the process of making the access arrangements for Connex and Pacific National.</p> <p>ESC chairman Greg Wilson said the commission had rejected the access arrangements on the basis of not satisfying the full requirements established under the state government’s pricing order.</p> <p>"While the commission considers that the service standards proposed by Pacific National are broadly acceptable, there remains some uncertainty about pricing and overall revenue. In particular, Pacific National’s proposal is contingent upon yet-to-be-established government funding of the freight network," he said.</p> <p>Mr Wilson said the timeframes were tight for the implementation of the Victorian rail access regime, with rail infrastructure providers required to formulate and submit their access arrangements within two months of the declaration of the rail infrastructure on January 1, 2006.</p> <p>"However, the access providers have been very co-operative during the process, and there is good progress towards establishing the access arrangements. The ESC will seek to ensure the access arrangements are as consistent as possible with the business needs of the access providers, while also meeting the commission’s regulatory requirements," he said.</p> <p>The ESC decision could cause concern among potential buyers of a 50% stake in Pacific National, which Toll must sell under an agreement made with the competition regulator during its takeover of Patrick Corporation, formerly co-owner of the PN business.</p> <p>The ESC has also made a final decision on the VicTrack access arrangement. VicTrack operates some declared sidings, mainly in the Dynon precinct. </p> <p>As VicTrack did not originally submit its access arrangement by the due date, the commission was required to make the access arrangement.</p> <br />