why interst, page-2

Ruling stokes FMG's hopes for Pilbara rail access


Date: 3/10/2006
Author: Matthew Drummond
Source: The Australian Financial Review --- Page: 16


The National Competition Council (NCC) has made a new decision in the dispute between BHP Billiton and Fortescue Metals Group. The NCC had previously ruled that the open-access regime under Australia's competition laws does not apply to BHP's Goldsworthy rail line. However, the regulator has filed an amended defence. If upheld by the courts, the reversal could see Fortescue granted access to the rail line. The NCC has taken the position that the line could be declared under the Trade Practices Act, as there is scope for BHP to be compensated if Fortescue is allowed to run its trains on the Goldsworthy track. The ruling could potentially open up more privately-owned infrastructure to third parties