ESCOSA content iconTarcoola to Darwin rail infrastructure: Review of asset valuation methodologies for periodic revenue reviews

  • Project Released: 7 Nov 2022
  • Project Closes: Mar 2023
  • Contact: Mark Caputo

Overview

The Commission is reviewing the asset valuation methodologies that could be adopted for the purposes of periodic reviews of revenues. Clause 50 of the AustralAsia Railway (Third Party Access) Code (Code) requires that the Commission review, in five-year intervals, below-rail freight revenues where no sustainable competitive prices exist. A key component of those periodic reviews of revenues is the value attributed to the rail infrastructure. 

This review of asset valuation methodologies is intended to allow all stakeholders the opportunity to submit evidence and views on the topic of asset valuation methodologies and their application in future reviews of revenues. The timing of any potential change to asset valuation methodology will be considered.

 

Status

Current status is Initiate

  • Initiate
  • Submissions
  • Final

Initiate

The Commission has released a discussion paper that explores asset valuation methodologies that could be adopted for the purposes of periodically reviewing the revenues earned by the access provider of rail infrastructure services between Tarcoola and Darwin. The paper outlines why the Commission may adopt an asset valuation methodology other than Depreciated Optimised Replacement Cost if, on a review, it considers that methodology to be no longer valid. The paper also outlines what the Commission sees are the key advantages and disadvantages of various asset valuation methodologies. 

The Commission welcomes submissions from all stakeholders on the issue. Submissions close 23 December 2022.

A final paper is planned for March 2023.

 

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