ACCC accepts pro-competitive undertaking from TasPorts

Pictured: a representation of Lady Justice. Photo credit: Tingey Injury Law Firm via Unsplash.

TasPorts has given a court-enforceable undertaking to the Australian Competition and Consumer Commission after the port operator admitted that it had engaged in conduct likely to have the effect of substantially lessening competition.

TasPorts provided towage, pilotage and other services to a mining company that owns and operates ship loading infrastructure at Port Latta in Northern Tasmania.

The mining company advised TasPorts that it was switching to a new service provider, Engage Marine (a Shipping Australia member). TasPorts then told the mining company that it would need to pay a “marine precinct tonnage charge”. This was the conduct that TasPorts admitted was likely to substantially lessen competition in the markets for towage and pilotage services.

To address the ACCC’s concerns, TasPorts provided the ACCC with a statutory undertaking that:

  • charges imposed by TasPorts on Grange, or any other person on account of or in connection with TasPorts’ regulatory functions at Port Latta are reasonable and cannot be varied to discriminate against the use of towage suppliers other than TasPorts
  • Engage Marine will have access to berth space at Inspection Head for two tug boats on reasonable commercial terms
  • TasPorts will invest, during the term of the Undertaking, a minimum of one million dollars on the wharf or other facilities at Inspection Head to mitigate the risk that deterioration of the wharf or those facilities disrupting or preventing the berthing of tugs or other commercial vessels at Inspection Head
  • TasPorts will take all steps required to enable port users to use TasPorts’ port communications system to book a towage service provided by Engage Marine at the ports of Burnie, Bell Bay and Devonport in northern Tasmania.
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