Tarcoola to Darwin rail infrastructure: review of asset value methodologies for periodic revenue reviews - draft report

21 Aug 2023


The Commission has undertaken a review of the asset valuation methodologies to be used when conducting five-yearly reviews of the revenues earned by the provider of rail infrastructure services between Tarcoola and Darwin.  Its draft finding is that a Depreciated Optimised Replacement Cost (DORC) asset valuation methodology will be applied for subsequent revenue reviews until there is compelling reasons that a DORC methodology is no longer appropriate. A DORC asset valuation methodology is considered to be efficient, consistent with arbitration processes in the Code and regulatory practice in Australia, and practicable for the purposes of undertaking the maximum revenue assessment.

The Commission welcomes stakeholder submissions on the draft report by 27 October 2023.


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