Australia's competition regulator has decided not to extend a shipping queue management system at one of Australia's busiest coal export ports, citing fewer ships visiting the port as well as competition issues. The Australian Competition & Consumer Commission (ACCC) said on Monday it would not allow coal exporters an extension to operate the system at the Dalrymple Bay terminal in Queensland state.
The queue system has been suspended since the regulator's original authorisation expired on Dec. 31. The ACCC had refused to grant an interim authorisation.
It said continued operation of the queue management system was likely to reduce the incentive to develop long-term solutions to congestion at the port.
The system was put in place in December 2005 as shipping congestion at the port worsened because of strong demand for coal.
Dalrymple Bay handles mainly coking coal used to make steel from mines operated by companies such as BHP Billiton and Rio Tinto.
Demand has slumped as the global economy unravelled, reducing the number of ships waiting to load coal from more than 70 vessels 18 months ago to less than 10.
The terminal's capacity is being expanded to 85 million tonnes a year from 72 millions tonnes, though the expansion will not be completed until June, three months behind schedule, because of delays caused by wet weather.
The Dalrymple Bay terminal is owned under a lease agreement by Babcock & Brown Infrastructure.
The queue system has been suspended since the regulator's original authorisation expired on Dec. 31. The ACCC had refused to grant an interim authorisation.
It said continued operation of the queue management system was likely to reduce the incentive to develop long-term solutions to congestion at the port.
The system was put in place in December 2005 as shipping congestion at the port worsened because of strong demand for coal.
Dalrymple Bay handles mainly coking coal used to make steel from mines operated by companies such as BHP Billiton and Rio Tinto.
Demand has slumped as the global economy unravelled, reducing the number of ships waiting to load coal from more than 70 vessels 18 months ago to less than 10.
The terminal's capacity is being expanded to 85 million tonnes a year from 72 millions tonnes, though the expansion will not be completed until June, three months behind schedule, because of delays caused by wet weather.
The Dalrymple Bay terminal is owned under a lease agreement by Babcock & Brown Infrastructure.