Review of revenues for the Tarcoola to Darwin Railway 2013-14 to 2017-18
- Project Released: 15 Oct 2021
- Project Closes: Mar 2022
- Contact: Mark Caputo
Overview
The Commission is the regulator of the third party access regime that applies to below-rail services on the Tarcoola to Darwin rail line, established under the AustralAsia Railway (‘Third Party Access’) Code (Code). Under Clause 50(4) of the Code, the Commission must, for five-year periods, review below-rail freight revenues where no sustainable competitive prices exist. It must determine if those relevant revenues are excessive, having regard to the factors outlined in the Code.
Status
Current status is Final
Final
The Commission’s final finding is that, based on the Depreciated Optimised Replacement Cost asset value adopted in this review, excessive revenues have not been earned over the period 1 July 2013 to 30 June 2018.
The results are highly sensitive to the asset valuation, the cost allocation methodology and the rate of return adopted. Sensitivity analysis in relation to various key parameters indicates that the revenues earned were still well below any of the possible maximum revenue limits calculated.