<span class="" id="parent-fieldname-description"> Heavy haul rail is revealing itself as a top priority for bulk exporters, as evidenced by recent ructions in coal and iron ore over third party rail access. While Rio Tinto celebrates its win over Fortescue, Xstrata is bemoaning its plight in Queensland at the hands of Aurizon. </span> <p>As Australia’s mining boom subsides the economics of supply chains are emerging as a lynch pin for bulk industries.</p><p>The Australian Competition Tribunal (the Tribunal) has recently ruled that Rio does not have to provide third party access for Fortescue Metals Group (FMG) to its Hamersley and Robe rail lines for 20 years.</p><p>Rio’s acting CEO Paul Shannon hailed the decision as “great news” that preserves the efficiency of its supply chain.</p><p>“Rio Tinto runs a highly efficient railway that is fully integrated with our port and mine operations. This would be severely hindered if third parties were allowed to run trains on our rail network, not to mention the knock-on negative effect on the Western Australian and national economies from creating such inefficiencies,” Shannon said.</p><p>FMG says it is disappointed that despite the High Court’s decision in September last year that the company’s Rail Access Application be remitted back to the Tribunal for “fresh consideration,” the Tribunal has again made orders to set aside the treasurer’s original decision to declare Rio Tinto’s Hamersley and Robe Railway Lines open to third party access.</p><p>The High Court ruling required the Tribunal to make a fresh decision in Rio’s appeal against the decision by the federal treasurer Wayne Swan in 2008 to give third parties access to Rio’s Hamersley and Robe River rail lines. </p><p>The decision does not affect FMG’s current operations and expansion plans, which utilise the company’s existing fully owned rail infrastructure. <br />FMG CEO Nev Power said it is regrettable that the Tribunal did not see the merits of providing third party access to this infrastructure to enhance competition and thereby “deliver greater productivity and efficiency benefits for all of Australia.”</p><p>“Fortescue will continue to provide third party access to our own rail system and will continue to advocate for third party access for all Pilbara rail infrastructure,” Power said.</p><p>Elsewhere, Xstrata, in a recent submission to the Productivity Commission’s inquiry into the National Access Regime, said infrastructure owners are raising prices to an unreasonable level and singled out Aurizon’s charges for heavy haul rail in Queensland.</p><p>The Australian reported that Xstrata’s submission said rail and port charges in Queensland have risen from about 20-30% of a coalminer’s transport costs to as much as 40-50% for recent expansions to the rail network or new port projects. </p><p>Aurizon was able to extract charges in recent access negotiations “in excess of the regulated tariff for in effect no risk”, Xstrata’s submission said. </p><p>Original article published by <strong><a href="http://www.bulkhandling.com.au/news/2013/february/february-13-2013/rail-access-causing-controversy?M=6330502A-4986-4994-B1C2-3A1AF85BCBD4">Australian Bulk Handling Review</a></strong></p>
