High barriers to entry stifling competition: QR

<p>Queensland Rail’s push to become a national rail alternative was being stifled by significant barriers to entry, chief executive Bob Scheuber said last week.</p> <p>Mr Scheuber told the Australian Logistics Council’s annual forum the government-owned rail business had made strong representation to the Australian Competition and Consumer Commission in recent weeks about Toll’s proposed withdrawal of the east-west starter’s kit.</p> <p>Still smarting from the commission’s decision to approve SCT Logistics’ bid for the starter’s kit, Mr Scheuber said customers were understandably hesitant to commit freight volumes to an alternative operator unless the operator could demonstrate that they could deliver a quality national service. </p> <p>&#8220This is only possible if alternative operators have access to premium train paths and terminals, which are already locked up by the dominant rail operator,&#8221 Mr Scheuber said.</p> <p>&#8220We fear that healthy competition on the national rail market will be stifled unless potential alternative operators are assured reasonable access to train paths and terminals necessary for them to successfully compete. </p> <p>&#8220Then, as they say, let the market determine who will win.&#8221</p> <p>Mr Scheuber is due to retire from QR around June 30 this year. </p> <p>The company is in the process of recruiting a new chief executive.</p> <br />