10 October 2013
Mark Pearson
Deputy CEO – Regulation, ACCC
AusIntermodal 2013
Sydney Harbour Marriott
‘Competition and pro...
Competition and productivity
 Importance of competition and productivity
for transport and freight supply chains, across ...
ProductivityCompetition
Effective regulation
Infrastructure drives productivity growth
 For infrastructure to drive productivity growth,
Australia needs to
 make the...
Outline
 What the ACCC does relevant to the transport
industry, and why
 Enforcement the law to protect competition
 Un...
The ACCC
 ACCC is an independent statutory authority
formed in 1995 to administer and enforce the
Competition and Consume...
The CCA – consumers, competition & regulation
 The ACCC administers and enforces the CCA
 to protect consumers
 to resp...
ACCC roles — where we add value
 Roles relevant to transport and related supply chains
 Maintain and promote competition...
Why these roles?
 Competition encourages efficiency and innovation
 efficient prices and greater choice
 Community welf...
The ACCC enforces competition laws
 We want to see competition succeed in transport and
logistics chains
 eg. stevedorin...
Promoting competition
 Competition drives national productivity
 relevant to transport, logistics and intermodal supply ...
Understanding the complexities of
logistics supply chains
 ACCC takes a supply chain-wide view in its
assessments
 Hunte...
Effective regulation promotes efficient investment
 ACCC has a role where normal market mechanisms
don’t work, and where ...
 Competition and productivity are important long term
micro-economic reform issues
 As the freight task grows, capacity ...
Thank you
&
Questions
www.accc.gov.au
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Mark Pearson, ACCC - Competition and Productivity in intermodal freight - a regulator's view

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Mark Pearson, Deputy CEO - Regulation, Australian Competition and Consumer Commission presented the "Keynote Address: Competition and Productivity in intermodal freight - a regulator's view" at Ausintermodal 2013. This annual conference discusses the most up-to-date industry news on intermodal transport in Australia, and look at the latest initiatives to advance the efficient movement of containerised freight for rail, road and sea. For more information, please visit the conference website: http://www.informa.com.au/ausintermodal2013

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Mark Pearson, ACCC - Competition and Productivity in intermodal freight - a regulator's view

  1. 1. 10 October 2013 Mark Pearson Deputy CEO – Regulation, ACCC AusIntermodal 2013 Sydney Harbour Marriott ‘Competition and productivity in intermodal freight - a regulator’s view’
  2. 2. Competition and productivity  Importance of competition and productivity for transport and freight supply chains, across the modes  ‘Hilmer report’ on National Competition Policy released twenty years ago (1993), recommending a range of reforms  ACCC formed in 1995, including a role to promote competition and explain the role of regulation
  3. 3. ProductivityCompetition Effective regulation
  4. 4. Infrastructure drives productivity growth  For infrastructure to drive productivity growth, Australia needs to  make the right investment decisions  invest efficiently under appropriate regulatory rules and standards  make best use of existing and new infrastructure (ACCC Chairman, Rod Sims, International Infrastructure Symposium, Sydney, Oct 2013)
  5. 5. Outline  What the ACCC does relevant to the transport industry, and why  Enforcement the law to protect competition  Understanding of complexities of relevant logistics chains in making our assessments  Regulate where competition isn’t effective, to promote efficient use of, and investment in, existing infrastructure and new infrastructure
  6. 6. The ACCC  ACCC is an independent statutory authority formed in 1995 to administer and enforce the Competition and Consumer Act (CCA), formerly the TPA  The Commission: Chairman, Deputy Chair, full-time members, ex-officio & associate members  ACCC offices in each capital city & Townsville
  7. 7. The CCA – consumers, competition & regulation  The ACCC administers and enforces the CCA  to protect consumers  to respond to unlawful anti-competitive behaviour  where there is a need for specific economic regulation in certain highly concentrated and monopoly industries with ‘bottleneck’ characteristics that affect other industries—to properly regulate  Importance of competition and productivity for transport and freight supply chains, including intermodal terminals  Regulation can play a key role
  8. 8. ACCC roles — where we add value  Roles relevant to transport and related supply chains  Maintain and promote competition • prevention of anti-competitive mergers • stopping cartels • intervening where misuse of market power is identified • authorisation of anti-competitive arrangements that enhance efficiency/welfare and are in the public interest  Promote efficient use of and investment in infrastructure • economic regulation – access regimes; price notifications • monitoring – in certain monopoly or highly-concentrated industries, under Ministerial direction
  9. 9. Why these roles?  Competition encourages efficiency and innovation  efficient prices and greater choice  Community welfare enhanced by promoting efficient use of resources  Efficient markets are the aim  but market failure can occur; high entry barriers; natural monopolies  regulatory and other tools under the CCA can change incentives
  10. 10. The ACCC enforces competition laws  We want to see competition succeed in transport and logistics chains  eg. stevedoring and tug services at major ports  We consider mergers and acquisitions that could reduce competition in concentrated markets  vertical mergers closely scrutinised  We are keen to ensure that competition laws are not breached where competition is emerging or anticipated  eg. third stevedore entry (Bris/Syd)  potential for additional tug services in certain ports
  11. 11. Promoting competition  Competition drives national productivity  relevant to transport, logistics and intermodal supply chains  Changes signalled by new Government to coastal shipping regime  Further reform potential: Part X of the CCA  exemption for international liner shipping agreements not aligned with broader pro-competition policies  authorisation possible on case-by-case basis under the CCA
  12. 12. Understanding the complexities of logistics supply chains  ACCC takes a supply chain-wide view in its assessments  Hunter Valley coal chain  authorisation of industry arrangements looked at: • demand for coal loading services at Port of Newcastle • capacity of Hunter Valley coal chain  assessment of the ARTC access undertaking considered contractual alignment across the entire coal chain
  13. 13. Effective regulation promotes efficient investment  ACCC has a role where normal market mechanisms don’t work, and where there is monopoly  Monitoring  prices, costs and profits in certain industries (eg. container stevedoring at major ports)  Access undertakings  Bulk wheat export port terminal services (competitive wheat export industry established)  ARTC Hunter Valley Rail Network, and Interstate Rail Network (incentives aligned to promote efficient investment)  efficient investment and access to essential infrastructure
  14. 14.  Competition and productivity are important long term micro-economic reform issues  As the freight task grows, capacity and efficiency are also important  ACCC supports use of appropriate incentives to promote best use of existing and new infrastructure  Development and growth of intermodal facilities and services provide opportunities to improve efficiency of freight flows Conclusion
  15. 15. Thank you & Questions
  16. 16. www.accc.gov.au
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