2010 DBCT Draft Access Undertaking

The 2006 DBCT Access Undertaking expires on 31 December 2010.

On 22 December 2009, the Authority issued DBCT Management with an initial undertaking notice requiring it to submit a replacement draft access undertaking for the Dalrymple Bay Coal Terminal by 22 March 2010.

On 19 March 2010, the Authority received a draft access undertaking (2010 DAU) for the coal handing services at the Dalrymple Bay Coal Terminal from DBCT Management. The 2010 DAU set out the new terms and conditions under which DBCT Management proposed to provide access to the coal handling services at the Dalrymple Bay Coal Terminal covered by the undertaking once the current access undertaking expires.

On the 23 March 2010, the Authority published DBCT Management's 2010 DAU on the Authority's website and invited submissions from stakeholders and interested parties on any aspect of the DAU by 29 April 2010.

On the receipt of the 2010 DAU, the DBCT User Group indicated its support for the 2010 DAU as a negotiated package of arrangements that was supported by its members, although it left open the option for coal companies to make submissions on aspects of the 2010 DAU. No submissions were received.

On 31 August 2010, the Authority notified stakeholders about its intention of proceeding directly to a final decision on the 2010 DAU, without first issuing a draft decision. No stakeholders objected to this.

Given this, on 23 September 2010 in accordance with s. 134 of the Queensland Competition Authority Act 1997, the Authority made a final decision to approve the 2010 DAU.

On 22 October 2010, DBCT Management sought approval for an updated risk-free rate and debt margin, in accordance with the Authority's decision.

On 28 October 2010, the Authority approved the updated parameter estimates, which result in a WACC of 9.86% (down from the estimate of 10.31% in the Authority's decision) and a reference tariff of $2.77/tonne to apply to the terminal assets as at 1 January 2011.

Copies of the relevant documents are available below.

If you have any questions on this matter, please contact Paul Bilyk on 07 3222 0506.

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2010 DBCT Draft Access Undertaking

Decision/Recommendation

Interim Reports/Papers

Submissions