EXPLANATORY GUIDE FOR
THE 2024 INTERSTATE
ACCESS UNDERTAKING
Provided in support of ARTC’s submission of the 2024
IAU to the ACCC
12 December 2023
Explanatory Guide for 2024 IAU
TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................ 2
1. ARTC’S ROLE AND OBJECTIVES ........................................................... 6
2. ARTC NETWORK ...................................................................................... 7
2.1. OWNED NETWORK ............................................................................................... 7
2.2. LEASED NETWORK ............................................................................................... 7
3. STATUS OF THIS EXPLANATORY GUIDE .............................................. 8
4. HISTORY OF THE IAU ............................................................................... 8
5. IAU RENEWAL PROCESS ........................................................................ 9
5.1. 2018 IAU ................................................................................................................. 9
5.2. ACCC ISSUES PAPER ........................................................................................... 9
5.3. ACCC GUIDANCE PAPER ................................................................................... 10
5.4. PRICING METHODOLOGY .................................................................................. 10
5.5. INTEROPERABILITY ............................................................................................ 11
6. CUSTOMER ENGAGEMENT ................................................................... 12
6.1. BACKGROUND .................................................................................................... 12
6.2. MANAGING ISSUES RAISED .............................................................................. 12
6.3. ON-GOING ENGAGEMENT WITH STAKEHOLDERS ......................................... 15
7. ARTC PROPOSAL FOR THE IAU ........................................................... 15
7.1. PROPOSED FRAMEWORK FOR THE IAU.......................................................... 15
7.2. CHANGES TO THE ITAA ..................................................................................... 16
8. INTERSTATE NETWORK DEVELOPMENT STRATEGY ........................ 16
9. CONSISTENCY WITH ACCC REQUIREMENTS ..................................... 17
10. ARBITRATION UNDER THE IAU .................................................... 19
10.1. KEY DETAILS ABOUT THE ARBITRATION PROCESS ...................................... 20
10.2. STANDARD STEPS IN THE ARBITRATION PROCESS ..................................... 20
10.3. MATTERS TO BE TAKEN INTO CONSIDERATION BY THE APPOINTED
ARBITRATOR ....................................................................................................... 23
11. ATTACHMENTS ............................................................................... 25
Attachment 1: Customer Engagement List and Opportunities ....................................... 26
Explanatory Guide for 2024 IAU
Attachment 2: Sectional Review of amendments to the 2008 IAU in the 2024 IAU ....... 28
Attachment 3: Specific Changes ................................................................................... 32
Attachment 4: Floor Calculations ................................................................................... 43
Attachment 5: Arbitration Agreement Template ............................................................. 45
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EXECUTIVE SUMMARY
ARTC was created in 1998 through an Inter-Governmental Agreement (IGA) signed by the
Commonwealth, Victoria, South Australia, NSW, Western Australia, and Queensland. ARTC was
established as a consolidated interstate rail track owner to create a single process for access and its
charter at inception was to improve performance and efficiency of interstate rail infrastructure and to:
• increase capacity utilisation;
• listen, understand, and respond to the market;
• operate on sound commercial principles; and
• provide shareholders with a sustainable return on capital invested.
In 2023 ARTC’s shareholders published a Statement of Expectations which outlines the
Government’s objectives for ARTC. Specifically, ARTC is to:
• provide safe, efficient, and effective access to the interstate rail network;
• operate, manage, maintain, and improve track infrastructure owned or controlled by ARTC;
• pursue a growth strategy for interstate rail and rail’s share of the interstate freight market and to
foster a commercially viable Australian rail industry; and
• implement the recommendations of ’The Delivery of Inland Rail: An Independent Review, January
2023’ (Review) and deliver the Inland Rail project through its fully owned subsidiary.
These objectives are founded on expectations that ARTC will:
• continue to prioritise network resilience to ensure it provides a reliable and safe service offering in
support of the national supply chain and to encourage, where appropriate, the modal shift from
road to rail; and
• be commercially sustainable to support efficient investment in the interstate rail network, servicing
and repaying its debt obligations, and providing an appropriate return to the Government as
shareholder.
The 2024 Interstate Access Undertaking (IAU) has been developed in accordance with these
expectations and objectives. It creates a regulatory framework that delivers stakeholders with
regulatory certainty on the access framework whilst providing increased transparency on the cost and
performance of the network and future opportunities for growth across the network. It also provides
the commercial flexibility required to meet the goal of driving modal shift and supporting the
investment needed to deliver a resilient network that supports that growth.
The critical aspects of ARTC’s proposed new framework for the 2024 IAU on which it has engaged
with stakeholders include the following:
• a revised term of 5 years;
• clarity that IAU applies to new and existing access seekers;
• incorporation of the relevant sections that were proposed in 2018 (i.e., Sydney Metropolitan
Freight Network (MFN) and Queensland Border Loop to Acacia Ridge, which will be incorporated
into an expanded Newcastle to Acacia Ridge segment);
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• a commitment to the maintenance of real prices on current services, subject to an ability to
negotiate prices for the recovery of increased investments to improve reliability and service
(including resilience), and increased capacity;
• provides that negotiated price increases are subject to a dispute resolution process including
commercial arbitration provisions with mediation as a first step;
• provides detail on the arbitration process and key matters which the arbitrator must consider in
reaching their decision;
• improves ARTC’s transparency commitments regarding ARTC’s cost and revenue performance.
In addition to the current commitments on performance reporting, this includes an obligation to
publish an annual Interstate Network Development Strategy (INDS). The INDS will cover potential
investment projects on the Interstate Network (similar to the Hunter Valley Corridor Capacity
Strategy) and will specifically detail:
• performance indicators for each segment of the Interstate Network;
• total access revenue earned for each segment;
• volumes on each segment of the Interstate Network;
• maintenance costs, split by category of fixed and variable for each Segment of the Network;
• rail infrastructure capital associated with each Segment of the Network (noting that within the
INDS, capital costs will be categorised as either rail infrastructure capital or completed major
project costs);
• non-maintenance operating costs, including network control and overheads for the Interstate
Network;
• references to published financial reports; and
• major project documentation, including a description of the relevant major projects, the
published business case, and the final capital cost and associated data.
In addition to the extensive consultation undertaken by the ACCC on the appropriate regulatory
framework for the IAU, ARTC has undertaken stakeholder consultation on the 2024 IAU and has
engaged with over 25 stakeholders through the process; with key points raised by stakeholders
considered and, where appropriate, incorporated into the documents – either through drafting changes
or clarity provided in this Explanatory Guide.
Most changes were included in the IAU. However, as the IAU is a document between the ACCC and
ARTC, some stakeholder suggestions were included within the Indicative Track Access Agreement
(ITAA).
The final group of stakeholder issues raised did not relate directly to either the IAU or the ITAA. While
not immediately relevant to the regulatory process, ARTC takes these issues seriously and is
committed to working to resolve them where possible. In the interests of transparency, a diagram
showing engagement opportunities that already exist between industry and ARTC is provided at
Attachment 1.
The 2024 IAU journey has been an extensive one involving months of consultation on the appropriate
framework to apply to the Interstate Network given the competitive challenges of the freight market.
ARTC firmly believes that the 2024 IAU has addressed the key points raised by the ACCC and also
ensures that the ACCC’s legislative requirements are met, as per the table below:
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ACCC requirement
Addressed
Engage with stakeholders on
the replacement undertaking
ARTC has engaged with more than 25 stakeholders throughout the
process of finalising the 2024 IAU. Some issues raised either have
been adopted in the IAU or, where they have not, ARTC is
undertaking an ongoing process to provide feedback to the
stakeholders on the reasoning.
Commit to negotiate on
terms and conditions with
users
The 2024 IAU provides a firm commitment by ARTC to negotiate in
good faith with all new and existing users on a transparent and
non-discriminatory basis per the published terms and conditions
(via the ITAA and Rate Card). Under the 2024 IAU, ARTC is
required to publish information on, amongst other matters, costs,
revenue, performance, and future investments. Such information
affords transparency to new and existing users engaged in the
negotiation process.
Include a commercial
arbitration model with an
intermediary step of
mediation to resolve disputes
The 2024 IAU has commercial arbitration as the final dispute
resolution process which is binding on ARTC and involves
mediation as a preliminary step. Significant detail is provided in the
IAU and this Explanatory Guide on the arbitration process and the
matters that must be taken into account by the arbitrator when
making an award. This affords procedural transparency to users
and provides them with an ability to assess the strength of their
position prior to triggering the process.
Provide protections for
smaller, dedicated rail users,
who lack the resources and
experience to negotiate
effectively with ARTC
The 2024 IAU provides firm commitments on published terms,
pricing, and non-discriminatory access, all of which are strong
protections for smaller users. The inclusion of mediation as a
preliminary step to arbitration is also designed to provide a layer of
comfort for smaller users to resolve disputes prior to formal
arbitration.
Decrease transaction costs
for rail users in negotiating
the terms and conditions of
access through a focus on
transparency
The 2024 IAU includes significant commitments on transparency of
cost, revenue, volume, and performance at a segment and
business level. In addition, the INDS provides a framework for
engagement on growth opportunities, service improvements, and
potential investments in the network. Additionally, the INDS
provides users with the opportunity to put forward service options
they believe will benefit the industry for wider consideration.
Provides detail on the capital
expenditure on the network
The 2024 IAU provides significant clarity on the capital expenditure
profile for the network through the:
• identification of, and consultation on, major projects via the
INDS which incorporates current cost forecasts;
• annual reporting and provision of supporting documentation for
completed major projects; and
• annual reporting on rail infrastructure capital by segment.
Promote the economically
efficient operation of, use of,
The basis for the 2024 IAU is to define a commercially flexible
framework that promotes competition in the rail and freight markets
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The 2024 IAU which has emerged from this process will ensure rail is well positioned to meet the
challenges of the future freight market and maximise rail volumes in a commercial manner, consistent
with ARTC’s Statement of Expectations outlined by the Commonwealth Government.
ACCC requirement
Addressed
and investment in, the
Interstate Network
and drives an increase in rail volume. The 2024 IAU meets these
challenges through:
• increased transparency measures for the benefit of new and
existing user access requests;
• ensuring non-discriminatory access for all users on the same
service;
• outlining ARTC’s views on growth and investment opportunities
to inform future service offerings; and
• informing the industry of ARTC’s work on addressing structural
constraints (such as interoperability across network) which are
not resolvable under the access framework.
ARTC takes risk on investments and operating costs on the
Interstate Network given the lack of direct linkage between costs
and price. This ensures that at all times, ARTC has the strongest
incentive to ensure its operating cost performance is efficient (and
investments prudent) as higher costs directly result in lower
operating margins.
Provide efficient pricing that
at least meets the
incremental cost of service
as per ACCC’s legislative
requirements
The 2024 IAU continues the real pricing levels which have broadly
applied since 2008. ARTC has provided historical data in
Attachment 4 which demonstrates that the current pricing level has
exceeded the direct cost of segments. ARTC does not anticipate
any step change in either revenues or costs that would impact on
this trend in relation to the CCA pricing principles. As such, the
pricing should be considered efficient. ARTC notes the ACCC’s
requirement to consider return levels commensurate with risk as a
function of its review. ARTC considers this to reflect the setting of a
ceiling price, rather than the floor. Whilst the current framework
does not incorporate a ceiling price, ARTC’s Statement of
Expectations from its shareholders sets an objective to foster a
commercially viable rail industry with an expectation that ARTC
provide an appropriate return to Government as shareholder. .
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1. ARTC’S ROLE AND OBJECTIVES
Australian Rail Track Corporation Ltd is a company under the Corporations Act 2001 (Cth)
(Corporations Act), whose shares are held by the Commonwealth of Australia. ARTC was created in
1998 through an IGA signed by the Commonwealth, Victoria, South Australia, NSW, Western
Australia and Queensland. ARTC was established as a consolidated interstate rail track owner to
create a single process for access, consistent with the Competition Principles Agreement and the
National Rail Summit Heads of Agreement. ARTC’s charter at inception was to:
• improve performance and efficiency of interstate rail infrastructure;
• increase capacity utilisation;
• listen, understand, and respond to the market;
• operate on sound commercial principles; and
• provide shareholders with a sustainable return on capital invested.
The objectives of ARTC under the IGA are to provide efficient and seamless access to the Interstate
Network by:
• operating the business on commercially sound principles;
• pursuing a growth strategy for interstate rail;
• improving interstate rail infrastructure through better asset management and a program of
commercial and grant funded investment; and
• promoting operational efficiency and uniformity on the Interstate Network.
The IGA provided for ARTC to have commercial performance incentives and the capacity to price,
market, and manage supply of its services flexibly in the context of a competitive transport market.
In 2023 ARTC’s shareholders published a Statement of Expectations which outlines the
Government’s objectives for ARTC as:
• to provide safe, efficient, and effective access to the interstate rail network;
• to operate, manage, maintain, and improve track infrastructure owned or controlled by ARTC;
• to pursue a growth strategy for interstate rail and rail’s share of the interstate freight market and to
foster a commercially viable Australian rail industry; and
• to implement the recommendations of the Review and deliver the Inland Rail project through its
fully owned subsidiary.
These objectives are founded on expectations that ARTC will:
• continue to prioritise network resilience to ensure it provides a reliable and safe service offering in
support of the national supply chain and to encourage, where appropriate, the modal shift from
road to rail;
• be commercially sustainable to support efficient investment in the interstate rail network, servicing
and repaying its debt obligations, and providing an appropriate return to the Government as
shareholder.
The 2024 IAU has been developed in accordance with these expectations and objectives. It creates a
regulatory framework that delivers stakeholders with regulatory certainty on the access framework
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whilst providing increased transparency on the cost and performance of the network and future
opportunities for growth across the network. It also provides the commercial flexibility required to meet
the goal of driving modal shift and supporting the investment needed to deliver a resilient network that
supports that growth.
2. ARTC NETWORK
ARTC currently has responsibility for the management of around 8,500 route kilometres of standard
gauge track, in South Australia, Victoria, NSW, and Western Australia over which it is responsible for:
• selling access to train above rail operators (Operators);
• the development of new business;
• capital investment;
• operational management; and
• managing infrastructure maintenance.
This network is a combination of corridors that are either owned or leased by ARTC, where the mix of
segments covered by the IAU is described below.
2.1. OWNED NETWORK
ARTC owns the following rail corridors:
• Adelaide – Wolseley;
• Adelaide – Pt Augusta – Kalgoorlie;
• Pt Augusta – Whyalla;
• Broken Hill – Crystal Brook; and
• parts of the Adelaide metropolitan track between Dry Creek and Outer Harbour.
2.2. LEASED NETWORK
In Victoria, ARTC leases the two mainline interstate standard gauge corridors from the Victorian
Government, being:
• Melbourne – Wolseley; and
• Melbourne – Albury.
ARTC also manages access to the connection from the interstate mainline network to the Appleton
Dock precinct in Melbourne.
In NSW, ARTC leases the following parts of the NSW rail network:
• Albury – Macarthur;
• Woodville Junction (Newcastle) – Queensland Border;
• Cootamundra – Broken Hill;
• Parkes – Werris Creek/Ulan;
• Macarthur to Chullora (Southern Sydney Freight Line (SSFL));
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• Chullora to Port Botany (MFN); and
• Moss Vale to Unanderra.
The MFN has been defined as the Chullora to Port Botany section which reflects the dedicated
segment for freight haulage into Port Botany. The section from Sefton Park to Flemington Junction
which is included in the MFN for the current IPART regulatory review has been incorporated into the
SSFL to reflect its primary use for intermodal traffic in the north south corridor.
In Queensland, ARTC leases the section from the Queensland Border to the Acacia Ridge Terminal.
This 2024 IAU reflects the incorporation of the MFN and the Queensland Border to Acacia Ridge
section into the network covered by the IAU.
3. STATUS OF THIS EXPLANATORY GUIDE
This Explanatory Guide is a public document provided to assist stakeholders to understand the
application of the new 2024 IAU.
4. History of the IAU
Rail access policy and regulation was implemented in the 1990’s as part of the microeconomic reform
agenda reflecting the structural separation of the industry into above rail Operators (deemed to be the
competitive and therefore unregulated) and Below Rail Networks (the monopoly segment which would
be subject to economic regulation to drive cost and price efficiency). These reforms were
implemented at the State level, with every state passing rail access regulation. Additionally, the
Commonwealth provided an overarching framework through the (now) Competition and Consumer
Act (CCA) and appointed the ACCC to regulate and monitor specific industries and approve voluntary
access undertakings that may be submitted by companies.
In 1998, ARTC was created to establish a national rail network and provide a one stop shop for
Operators to contract for network access under consistent access regulations. Since 2002 ARTC has
operated under a voluntary access undertaking approved by the ACCC. ARTC was the first, and is
currently the only, rail company to have submitted a voluntary undertaking to the ACCC. This 2002
IAU covered SA and Victoria (as ARTC was yet to lease the NSW networks) and incorporated the
standard Track Access Agreement (TAA) which allocated risks and responsibilities of a structurally
separated network, thereby facilitating above rail competition. The key principles approved under the
2002 IAU remain of critical importance today. The following principles have underpinned 20 years of
ARTC operation under a (voluntary) regulated access environment:
• intermodal competition exists;
• ARTC is not vertically integrated;
• charges set by ARTC in the marketplace result in revenues that fall significantly below a level that
would allow for the business to earn an adequate long term economic rate of return due to the
competitive constraints of road transport;
• ARTC has adopted the concepts of equity and openness as key elements of its pricing policy, in
order to stimulate market confidence and growth in the rail industry; and
• the appropriate allocation of risk and responsibility (via indemnities) between above and below rail
is essential.
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Key elements of the pricing methodology that have underpinned these ARTC’s operations are
outlined below at section 3.3.
In 2008, the IAU was renewed and incorporated NSW segments for the first time with the SSFL
included via a variation in 2013. ARTC sought to include the MFN and the Queensland Border to
Acacia Ridge section in its proposed 2018 version and has incorporated them in this 2024 IAU.
5. IAU Renewal Process
5.1. 2018 IAU
ARTC submitted a proposal to the ACCC to renew the IAU on 6 March 2018. This proposal reflected
a negotiate-arbitrate model to allow for commercial flexibility within a pricing range constrained by a
maximum revenue calculation derived from an asset base reflecting significant network investment
from 2008 to 2018. In a December 2018 draft decision, the ACCC rejected the proposed IAU, and
expressed concerns regarding the accuracy of the asset value and hence the ceiling. Following that
rejection, ARTC worked with the ACCC to address their concerns and agree a process for an
independent valuation of the asset.
To facilitate this process, ARTC withdrew its proposed 2018 IAU and has extended the 2008 to its
current expiry of 30 June 2024. This was done to provide stakeholders with regulatory certainty whilst
the necessary reviews and consultations were undertaken.
The ACCC published its draft Interstate Network Asset Valuation on 15 June 2021, assessing the
asset value at $10.6 billion ($2019) which was reduced to $10.2 billion ($2019) post the removal of
government grant funded assets. In its discussion paper on the proposed valuation, the ACCC
highlighted its concern that such a value would not provide any regulatory pricing constraint on ARTC
and flagged it would release an Issues Paper on alternative regulatory frameworks for the IAU that
would be more fit for purpose.
5.2. ACCC ISSUES PAPER
On 25 August 2021 the ACCC published an Issues Paper raising its concerns with the efficacy of
DORC based regulation and sought comments on the need for ARTC to be regulated and what form
of regulation that should take. The risk of a future privatised ARTC was raised and its ability to
potentially raise prices at the expense of volume and whether this necessitates a need for stronger
regulation.
Comments were sought on various alternative regulatory frameworks and whether legislation is
required to compel asset owners to submit to such a framework. The models consulted on included
price monitoring mechanisms, traditional cost-based revenue ceiling models, defining a revenue
ceiling based on ARTC’s forecast of future cash flows, price control mechanisms based on reference
to CPI, and a negotiate-arbitrate framework with commercial arbitration as the mechanism to resolve
pricing disputes.
ARTC has continually advocated to the ACCC on the benefits of a commercial arbitration-based
framework to deliver the commercial agility required for rail volume to grow and to drive modal shift.
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5.3. ACCC GUIDANCE PAPER
The ACCC published an IAU Guidance Paper, reflecting submissions on the Issues Paper, on 28 July
2022. This paper outlined the ACCC’s expectations of the key principles to underpin the 2024 IAU.
These broadly aligned with ARTC’s expectations and included:
• a commitment by ARTC to negotiate on terms and conditions with users;
• a model with commercial arbitration as the final mechanism to resolve disputes with an
intermediary step of mediation;
• protections for smaller, dedicated rail users who lack the resources and experience to negotiate
effectively with ARTC;
• decrease transaction costs for rail users negotiating the terms and conditions of access through a
focus on transparency; and
• a defined a price cap on potential price increases which should not be based on an assessment
of ARTC’s cost base or revenue forecasts.
ARTC considers that its proposed 2024 IAU meets these requirements and maintains the pricing
structure which has underpinned the IAU from its commencement. Whilst these pricing levels are
constrained by competition from rail’s modal competitors of road and sea, they at least cover the
incremental cost of usage of the network and therefore meets the ACCC legislative requirements to
deliver efficient pricing.
The summary of segment costs, revenue and volume outlined in Attachment 5 is provided to
demonstrate this principle.
5.4. PRICING METHODOLOGY
The approach to pricing contained in the 2002 and 2008 IAUs was based on meeting the following
objectives:
• published reference pricing is open and simple – promotes usage and market confidence,
enhancing above rail competition;
• pricing is non-discriminatory – promotes market confidence in equitable treatment, enhancing
above rail competition;
• indicative pricing is market based – promotes rail competitiveness;
• indicative pricing – provides pricing certainty promoting investment and market entry enhancing
above rail competition;
• two part pricing – encourages more efficient above rail operations, and set at less than fixed cost
levels so as not to inhibit market entry; and
• pricing promotes market growth, improving cost recovery and long term asset sustainability.
The 2008 IAU defined the tariff associated with the indicative access service, being the transport of
general freight on a super freighter train, as the Super Freight service. The tariffs associated with non-
indicative services were not prescribed in the IAU and were therefore subject to negotiation between
ARTC and the Operators.
The current two part tariff structure applying to the Interstate Network (for all services except the non-
indicative coal service which has historically been priced on a net tonne basis) is applied to every path
booked by an Operator and has two parts:
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• a flagfall component based on $/km; and
• a variable component based on $/gtkm.
The flagfall component is effectively the take or pay component of charging and persists for up to 12
months or more beyond the cancellation of a path. The split of the two part tariff (between flag fall and
variable charges) was also set low to encourage competition and bring new Operators onto the
network. This resulted in flagfalls at c 25-30% of revenue compared to c 70% in other regimes.
The use of $/gtkm was based on driving contestability, as valuing on train km, or by train path,
disadvantaged new entrants in developing their business as they could not commence services at the
maximum efficiency of train length. $/gtkm based tariffs therefore ensured competitive neutrality with
the existing Operators and ensured that the tariff structure was not a barrier to entry.
Within the pricing constraints provided by road competition, the main driver for both the structure and
the level of ARTC tariffs has been the promotion of above rail competition. ARTC has been prepared
to accept the volume risk represented in highly variable charges to promote above rail competition
and to drive more freight on rail.
The 2024 IAU, for the first time, extends regulatory coverage of its price offering to all existing
services based on segment, commodity, train configuration, priority, and speed. Further, ARTC has,
for all existing services, committed to maintain the real pricing level (based on current network
capacity) for the term of the 2024 IAU. This is reflected by the inclusion of the rate card current at the
time of submission as a schedule in the IAU. ARTC will also continue to publish the rate card on its
website to provide further clarity. This commitment delivers significant regulatory and pricing certainty
to existing and potential users of these services and is considered to meet the ACCC’s requirement of
a price cap under a commercial arbitration framework.
The pricing model defined in the IAU is replicated in the commercial contracts with Operators, with the
price is explicitly defined in the contract rather than referencing the price path in the IAU.
5.5. INTEROPERABILITY
ARTC does not control the entirety of the below rail service provision in many markets. As such ARTC
recognises the need to coordinate its activities (such as train planning and day of operations) with
other track managers, both on the Interstate Network and regional networks. Cooperation and
coordination are essential elements for seamless access and the provision of safe, efficient, and
reliable services. Both of which are critical for rail to compete and sustain itself.
ARTC notes comments from stakeholders about the interoperability and harmonisation issues of rail
networks. In addition to ARTC’s commitment to rail network coordination outlined above, ARTC is
actively involved in industry fora to address these issues. In particular, ARTC is a key member of a
National Transport Commission working group that is actively seeking to improve network
interoperability and harmonisation. ARTC is committed to removing barriers to efficient rail operation
where it can, but this commitment is best reflected in policy and industry fora where ARTC can
advocate and lead change across the industry. This commitment will be reflected in a chapter of the
INDS which outlines the steps ARTC is taking to support the resolution of rail network interoperability
issues.
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6. CUSTOMER ENGAGEMENT
6.1. BACKGROUND
In its July 2022 Guidance Paper, the ACCC set an expectation that ARTC would engage with
stakeholders to seek feedback on ARTC’s proposed IAU prior to submitting the draft to the ACCC.
Equally, stakeholders were encouraged to raise concerns with ARTC prior to making formal
submissions to the ACCC on the IAU. As highlighted above, the Guidance Paper was the output of a
process that involved extensive industry consultation by the ACCC on the Interstate Rail Network and
the regulatory framework which should apply to it. ARTC’s consultation with stakeholders should
therefore be viewed as an extension of this engagement process.
In the second half of 2023, ARTC commenced engagement with stakeholders. ARTC acknowledged
that Customers and other stakeholders would have varying degrees of engagement with the draft IAU
consultation process. An effort was made to engage deeply with organisations who had previously
made submissions regarding the IAU. Other organisations were sent a package of material with an
offer to meet and discuss any aspects of interest.
Over a three month period, more than 25 stakeholders were contacted directly and given the
opportunity to provide feedback on the draft IAU. These included Rail Operators, Rail Infrastructure
Managers, ports, and a grain handler. The list of companies engaged is provided in Attachment 1.
6.2. MANAGING ISSUES RAISED
The range of issues raised throughout the consultation was broad. Of the issues that related to the
IAU, these were either:
• adopted within updated wording of the IAU; or
• not adoptewd where ARTC considered they were not appropriate with explanations given as to
that decision.
Given the IAU is a document between ACCC and ARTC, some stakeholder suggestions were
included in the ITAA.
The final group of issues raised did not relate directly to either the IAU or the ITAA. While not
immediately relevant to the regulatory process, ARTC takes these issues seriously and is committed
to working to resolve them where possible and has committed to a chapter in the INDS to inform the
industry of ARTC’s actions in this area.
A summary of the issues raised and ARTC’s responses is provided in the table below:
Stakeholder comment
ARTC response
PATHING
Concern around equivalence of train paths
ARTC does not price differentiate between
individual train paths. ARTC encourages
engagement with the Interstate Commercial and
Customer team on all matters, including access
charges and pathing.
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Process for migrating paths over from existing
north south line to Inland Rail on Inland Rail
commencement.
This is not an issue for the term of this IAU. The
change of the definition of “Applicant” in the IAU to
include existing customers clarifies there is access
to IAU arbitration for disputes in respect of new
pathing requests.
Questions in respect of the schedule in the master
train plan and deidentification of paths.
ARTC works with all Customers to provide an
optimal schedule based on the needs of the
Network which maximises utilisation and, where
possible based on confidentiality requirements,
maximises transparency. ARTC takes volume risk
on its Network and therefore is fully incentivized to
maximise the freight tonnage on its Network and
optimise pathing to facilitate this. There is always
opportunity to engage with Interstate Commercial
and Customer team to discuss pathing.
PRICING
Would like to see flexibility of pricing to reflect
seasonally-based commodities
We encourage engagement with the Interstate
Commercial and Customer team on all matters,
including access charges. We are always willing to
work with stakeholders and beneficial freight
owners to develop solutions and maximise freight
on rail.
Concerned that ARTC access charges aren't
waived when other networks have possessions
that impact the ability to use a path
ARTC engages with other RIMs to align
possessions wherever possible. However it is not
within ARTC’s remit to waive access charges
when another RIM’s possession affects usage of a
path.
Concern in respect of the manner of price
escalation
ARTC’s escalation clauses in its Access
Agreements requires a 60 day consultation on its
pricing proposal for the coming year. We
encourage engagement with the Interstate
Commercial and Customer team on all matters,
including access charges. We are always willing to
work with stakeholders and beneficial freight
owners to develop solutions and maximise freight
on rail.
INTERSTATE NETWORK DEVELOPMENT STRATEGY (INDS) AND REPORTING
What will be included in the INDS
The INDS is an annual snapshot of ARTC’s view
of the opportunities for the commodities that
underpin the use of the rail network, the
investments (and forecast costs) required to
improve service and deliver increased capacity to
capture those opportunities, a summary of actions
ARTC has taken to address broader policy issues
such as interoperability and an ability for
stakeholders to propose alternatives based on
industry wide consultation. A draft will be provided
for consultation, then a final version published.
What will be included in annual performance
reporting
Annual reporting will include, by segment,
maintenance costs, revenue, utilisation (by GTK
14
and TKM), rail infrastructure capital and non-
maintenance operating costs (including Network
control and overheads) at the Network level as
well as the existing performance metrics. In
addition, upon completion of major capital
projects, ARTC will publish costs and supporting
project documentation.
Request to put out a draft of the INDS to operators
to make sure it meets their needs
A draft will be provided for consultation, then a
final version published.
What is the process for agreeing upon a capex
project, what the cost recovery is, whether a rail
operator has a say in it.
The INDS will be a dynamic document that is
consulted on and updated annually. It provides a
forecast of what capital costs are expected to be
for projects, but is not a commitment by ARTC to
develop referenced projects. Through the
consultation process, there will be opportunity to
provide feedback on any planned network
improvements.
Where ARTC seeks to recover the costs of
investments from Customers via negotiation, these
negotiations are covered by the clauses of the IAU
(including non-discrimination and dispute
resolution).
CONTRACTUAL DOCUMENTS
Various requests in requests in respect of the
matters to be considered by the Arbitrator and the
dispute resolution process
ARTC has accommodated many of these requests
(such as inclusion of CEO negotiation prior to
mediation) however some requests were not
incorporated to ensure consistency with the
provisions of the CCA and other access regimes.
Would like more detail around what is involved in
arbitration
ARTC has provided detail on the arbitration
process in this Explanatory Guide.
Would like to see "reasonable requests for
information" included in ITAA
The IAU allows for reasonable requests for
information, and this is covered off by the change
to the definition of “Applicant” which clarifies there
is access to IAU arbitration for disputes in respect
of new pathing requests.
INTEROPERABILITY
Concern regarding new technologies and
interfacing across networks
As one of National Cabinet’s five priorities for
collective action, we are focussed on improving
national rail interoperability and working with
governments and industry in contributing to the
development and harmonisation of processes and
systems to increase productivity and safety in the
sector. ARTC has committed to provide an update
on its actions to address this issue in the INDS.
Concerned with interoperability of multiple
networks, and the resolution of disputes across
networks
ARTC recognises the challenges of interfacing
with other networks and RIMs. While the
interoperability of the standard gauge network
doesn’t fit within the scope of IAU discussions,
15
ARTC works with government and industry to
streamline transitions between RIMs wherever
possible. ARTC has committed to provide an
update on its actions to address this issue in the
INDS.
NON-ROLLINGSTOCK INTERESTS
Concerned regarding rights of non-rollingstock
access users
The IAU is a document for negotiation of track
access agreements for all traffic .Where access to
the network is not the subject of an Access
Agreement, the IAU is not the appropriate forum
for management of such access.
NETWORK RELIABILITY
Concern regarding network reliability
The INDS is an ongoing vehicle for stakeholders,
regardless of their contractual relationship, to
provide input into ARTC’s investment planning and
Network development to support and protect
current volumes and meet future demand.
OPERATIONS
Need a better system to get access to track to
recover rollingstock
We note the varied efficiency of processes to
access track in instances of network disruption.
We note this feedback and are working to improve
the system for operators and the broader supply
chain.
6.3. ON-GOING ENGAGEMENT WITH STAKEHOLDERS
ARTC continues to follow up with Customers and other stakeholders to provide an update on matters
raised during consultation. This feedback is part of ARTC’s ongoing stakeholder engagement and will
form the basis for further consultation on matters such as the INDS. A specific section within the INDS
has been created to leverage this engagement and provide an ongoing framework for stakeholders to
raise potential commercial improvements. Any such stakeholder suggestions can be used to form the
basis for broader industry engagement on those issues.
Attachment 1 provides a diagram showing engagement opportunities that already exist between
industry and ARTC.
7. ARTC PROPOSAL FOR THE IAU
Attachment 2 provides a sectional review of amendments to the IAU and ITAA. For more specific
detail on the changes made see Attachment 3.
7.1. PROPOSED FRAMEWORK FOR THE IAU
The critical aspects of ARTC’s proposed new framework for the 2024 IAU on which it has engaged with
stakeholders are:
• has a revised term of 5 years;
16
• clarity that the IAU applies to new and existing access seekers;
• incorporation of the relevant sections that were proposed in 2018 (i.e., MFN and Queensland
Border Loop to Acacia Ridge, which will be incorporated into an expanded Newcastle to Acacia
Ridge segment);
• commits to the maintenance of real prices on current services, subject to an ability to negotiate
prices for the recovery of increased investments to improve reliability and service (including
resilience), and increase capacity;
• provides that any negotiated price increases are subject to a dispute resolution process including
commercial arbitration provisions with mediation as a first step;
• details the arbitration process and key matters which the arbitrator must consider in reaching their
decision;
• improves ARTC’s transparency commitments regarding ARTC’s cost and revenue performance.
In addition to the current commitments on performance reporting, this includes an obligation to
publish the INDS on an annual basis. The INDS will cover potential investment projects on the
Interstate Network (similar to the Hunter Valley Corridor Capacity Strategy) and will specifically
detail:
▪ performance indicators for each segment of the Interstate Network;
▪ total access revenue earned for each segment;
▪ volumes on each segment of the Interstate Network;
▪ maintenance costs, split by category of fixed and variable for each Segment of the
Network;
▪ rail infrastructure capital associated with each segment of the Interstate Network
(noting that within the INDS, capital costs will be categorised as either rail infrastructure
capital or completed major project costs);
▪ non-maintenance operating costs, including network control and overheads for the
Interstate Network;
▪ references to published financial reports; and
▪ major project documentation, including a description of the relevant major projects, the
published business case, and the final capital cost and associated data.
7.2. CHANGES TO THE ITAA
Amendments to the ITAA have been proposed to ensure consistency with the current Track Access
Agreements in place with Customers and reflect amendments negotiated over the period from 2008.
8. INTERSTATE NETWORK DEVELOPMENT
STRATEGY
As raised above, the 2024 IAU will, for the first time, provide for the annual publishing of the INDS
which will outline ARTC’s assessment of market opportunities, the investments required to capture
them (with indicative estimates of capital costs provided), a summary of ARTC’s actions to progress
solutions on interoperability issues. Additionally, the INDS will provide a forum for Operators to raise
potential changes to the service offering to deliver improved network performance.
17
The INDS will also facilitate stakeholder engagement on major projects which are required to meet
demand growth on the Interstate Network.
It is envisaged that the following topics will be covered within the INDS:
• representation of the network and its current capabilities;
• completed Interstate Network investments by ARTC;
• future investments in development/progress;
• Projections of the interstate rail task;
o intermodal;
o steel;
o grain;
o minerals;
o general freight;
o passenger;
• network performance (current state);
• additional capacity enhancements to meet the projections of the rail task;
• rail market challenges and opportunities;
• operational improvements (including a separate section for stakeholder suggestions that can be
consulted on more broadly);
• network resilience; and
• actions taken by ARTC to improve interoperability and harmonisation.
It is important to note that this outline serves as an interim guide as to the content. Once complete, a
draft will be provided for consultation, then a final version published. The INDS will be updated
annually, with consultation occurring on the draft each year.
9. CONSISTENCY WITH ACCC REQUIREMENTS
ARTC considers that the changes incorporated into the 2024 IAU meet the requirements expressed
by the ACCC for a new regulatory framework and are consistent with their legislative approval
requirements.
ACCC requirement
Addressed
Engage with stakeholders on
the replacement undertaking
ARTC has engaged with more than 25 stakeholders throughout the
process of finalising the 2024 IAU. The issues raised were either
adopted in the IAU or ITAA, considered further in this Explanatory
Guide, or declined where not appropriate with explanations
provided for that decision.
Commit to negotiate on
terms and conditions with
users
The 2024 IAU provides a firm commitment by ARTC to negotiate in
good faith with all new and existing users on a transparent and
non-discriminatory basis per the published terms and conditions
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ACCC requirement
Addressed
(via the ITAA and Rate Card). Under the 2024 IAU, ARTC is
required to publish information on, amongst other matters, costs,
revenue, performance, and future investments. Such information
affords transparency to new and existing users engaged in the
negotiation process.
Include a commercial
arbitration model with an
intermediary step of
mediation to resolve disputes
The 2024 IAU has commercial arbitration as the final dispute
resolution process which is binding on ARTC and involves
mediation as a preliminary step. Significant detail is provided in the
IAU and this Explanatory Guide on the arbitration process and the
matters that must be taken into account by the arbitrator when
making an award. This affords procedural transparency to users
and provides them with an ability to assess the strength of their
position prior to triggering the process.
Provide protections for
smaller, dedicated rail users,
who lack the resources and
experience to negotiate
effectively with ARTC
The 2024 IAU provides firm commitments on published terms,
pricing, and non-discriminatory access, all of which are strong
protections for smaller users. The inclusion of mediation as a
preliminary step to arbitration is also designed to provide a layer of
comfort for smaller users to resolve disputes prior to formal
arbitration.
Decrease transaction costs
for rail users in negotiating
the terms and conditions of
access through a focus on
transparency
The 2024 IAU Includes significant commitments on transparency of
cost, revenue, volume, and performance at a segment and
business level. In addition, the INDS provides a framework for
engagement on growth opportunities, service improvements, and
potential investments in the network. Additionally, the INDS
provides users with the opportunity to put forward service options
they believe will benefit the industry for wider consideration.
Provides detail on the capital
expenditure on the network
The 2024 IAU provides significant clarity on the capital expenditure
profile for the network through the:
• identification of, and consultation on, major projects via the
INDS which incorporates current cost forecasts;
• annual reporting and provision of supporting documentation for
completed major projects; and
• annual reporting on rail infrastructure capital by segment.
Promote the economically
efficient operation of, use of,
and investment in, the
Interstate Network
The entire basis for the 2024 IAU is to define a commercially
flexible framework that promotes competition in the rail and freight
markets and drives an increase in rail volume. The 2024 IAU meets
this challenge through:
• increased transparency measures for the benefit of new and
existing user access requests;
• ensuring non-discriminatory access for all users on the same
service;
• outlining ARTC’s views on growth and investment opportunities
to inform future service offerings; and
19
ACCC requirement
Addressed
• informing the industry of ARTC’s work on resolving structural
constraints (such as interoperability across network) which are
not resolvable under the access framework.
ARTC takes 100% of the cost risk on investments and operating
costs on the Interstate Network given the lack of direct linkage
between costs and price. This ensures that at all times, ARTC has
the strongest incentive to ensure its operating cost performance is
efficient (and investments prudent) as higher costs directly result in
lower operating margins.
Provide efficient pricing that
at least meets the
incremental cost of service
as per ACCC’s legislative
requirements
The 2024 IAU continues the real pricing levels which have broadly
applied since 2008. ARTC has provided historical data in
Attachment 4 which demonstrates that the current pricing level has
exceeded the direct cost of segments. ARTC does not anticipate
any step change in either revenues or costs that would impact on
this trend in relation to the CCA pricing principles. As such, the
pricing should be considered efficient. ARTC notes the ACCC’s
requirement to consider return levels commensurate with risk as a
function of its review. ARTC considers this to reflect the setting of a
ceiling price, rather than the floor. Whilst the current framework
does not incorporate a ceiling price, ARTC’s Statement of
Expectations from its shareholders sets an objective to foster a
commercially viable rail industry with an expectation that ARTC
provide an appropriate return to Government as shareholder.
10. ARBITRATION UNDER THE IAU
Where an access dispute between the ARTC and an Applicant is referred to arbitration in accordance
with the 2024 IAU, this arbitration will be conducted in accordance with the Australian Centre for
International Commercial Arbitration (ACICA) rules of arbitration (Rules) that are in force at the date of
service of the relevant Notice of Dispute (discussed in further detail below), as amended and
supplemented by clause 3.12.5 of the 2024 IAU.
A party that knows that any requirement of the Rules has not been complied with and yet proceeds
with the arbitration without promptly stating its objection to such noncompliance will be deemed to
have waived its right to object to the non-compliance.
The 2024 IAU provides that there will be one arbitrator and that the arbitration shall be governed by
the laws of South Australia. The IAU also incorporates as a Schedule the Arbitration Agreement that
will be required to be executed by all parties as part of the dispute resolution process. This process
has arbitration as a final step following executive escalation and then mediation. Note that the
arbitrator’s decision is binding on ARTC however users have the option not to proceed with the
access application. For clarity, the Arbitration Agreement template is included in this Explanatory
Guide at Attachment 5.
As commercial arbitration is a new feature of the IAU and it references the ACICA Rules rather than
setting out the detail in the IAU, ARTC provides a detailed explanation of the arbitration process
below.
20
10.1. KEY DETAILS ABOUT THE ARBITRATION PROCESS
The key details of an arbitration process in respect of an access dispute under the Undertaking are as
follows:
• Prior to referring a dispute to arbitration, the parties must enter into an Arbitration Agreement
under which they agree to be bound by the arbitration process.
• There will be one arbitrator, to be agreed upon by the parties or appointed by ACICA if the parties
cannot agree.
• All documents or information supplied to the arbitrator by one party shall at the same time be
communicated to the other party.
• The decision of an arbitration is called an “award”.
• There will be no oral hearing unless the arbitrator or parties require one.
• Matters relating to the arbitration (including its existence) are confidential, except that the details
of the award shall be given to the ACCC.
• The parties can be legally represented.
• There are limited rights to appeal an arbitral award. The appeal rights are contained in Part 7 of
the Commercial Arbitration Act 2011 (SA) (Commercial Arbitration Act).
• The periods of time fixed by the arbitrator for the communication of written statements should not
exceed 45 days, however, these periods may be extended by the arbitrator if necessary.
• Multiple Applicants can be party to the one arbitration with ARTC ether by way of consolidation or
joinder. Arbitrations can be consolidated or multiple Applicants can be joined to an arbitration via
agreement between all the parties.
1
Although consolidation can occur after arbitrators have been
appointed, the Rules suggest that consolidation should take place in the early stages of each
arbitration. However, an Applicant can be joined to an arbitration that is already on foot.
• The unsuccessful party will pay the costs of the successful party, unless the arbitrator considers a
different allocation is required.
10.2. STANDARD STEPS IN THE ARBITRATION PROCESS
Step 1: Notice of Arbitration
The party initiating the arbitration, the Claimant, submits a Notice of Arbitration to both Respondent
and ACICA and pays the registration fee.
The Notice of Arbitration contains:
• a demand that the dispute be referred to arbitration;
• contact information of the parties and their legal representatives (if applicable);
• a copy of the arbitration clause in the 2024 IAU and the separate arbitration agreement between
the parties;
1
Separate arbitrations can also consolidated if the claims involve a common question of law or fact, or if the relief
claimed in the arbitrations arises out of the same transaction or series of transactions, and ACICA finds the
separate arbitration agreements compatible. Additionally, an Applicant can be joined as a party to an arbitration if
the addititional Applicant is bound by the same Arbitration agreement, however this is unlikely to arise in practice.
21
• identification of the 2024 IAU as the agreement in respect of which the dispute has arisen;
• the general nature of the dispute and an indication of the amount involved, if any; and
• the relief sought by the Claimant.
Step 2: Answer to the Notice of Arbitration
Within 30 days of receiving the Notice of Arbitration, the Respondent is to submit an Answer to the
Notice of Arbitration to the Claimant and ACICA.
The Answer to Notice of Arbitration contains:
• contact information of the Respondent and its legal representatives (if any);
• any submission that the arbitrator does not have jurisdiction to determine the dispute;
• comments on the particulars of the dispute contained in the Claimant’s Notice of Arbitration; and
• comments on the relief sought by the Claimant in its Notice of Arbitration.
Step 3: Appointment of arbitrator
ARTC and the Applicant will seek to agree on the choice of arbitrator.
If the parties cannot reach agreement within 10 Business Days of the referral of a dispute to
arbitration under the 2024 IAU, the arbitrator will be appointed by ACICA and either party may write to
ACICA notifying ACICA that the parties have not been able to agree on the choice of arbitrator and
requesting that ACICA make that appointment.
The arbitrator is required to observe the rules of natural justice and will have power to grant all legal,
equitable and statutory remedies.
Step 4: Preliminary Conference
As soon as practicable, the arbitrator will hold a preliminary meeting with the parties in person or
virtually by conference call, videoconference or using other technology with participants in one or
more geographical places.
During this conference, a procedural timetable for the Arbitration will be determined and this may
include provisional hearing dates.
The arbitrator may, at any time, on application by either party, extend or vary the procedural
timetable.
Step 5: Pleadings
Statement of Claim
The Claimant is required to submit a Statement of Claim, which must include:
• a statement of the facts supporting its position in the dispute;
• the Claimant’s view on the points in issue between the parties;
• the relief sought; and
• the legal grounds or arguments supporting the Claimant’s position in the dispute.
As far as possible, the Claimant must annex to its Statement of Claim all documents and other
evidence on which it relies (or contain references to them).
Statement of Defence
22
The Respondent submits a Statement of Defence which must include the following details as
contained in the Statement of Claim:
• a statement of the facts supporting the Respondent’s position in the dispute;
• the Respondent’s view the points in issue between the parties;
• the Respondent’s view on the relief claimed by the Claimant; and
• the legal grounds or arguments supporting the Respondent’s views.
The Respondent must, as far as possible, annex to its Statement of Defence the documents and
other evidence on which it relies for its defence (or contain references to them).
Reply
The procedural timetable may make provision for the Claimant to provide a Reply. A Reply is
generally limited in scope to responding to matters raised in the Respondent’s Statement of Defence,
rather than raising new matters.
Amending statements or making further written statements
Unless the arbitrator considers it inappropriate to allow an amendment, either party may amend or
supplement its claim or defence.
The arbitrator will decide if further written statements, in addition to the claim and defence, will be
required from the parties and will fix the periods of time for submitting those.
Step 6: Discovery and Subpoenas
There is no express provision for discovery or disclosure in either the ACICA Rules or the 2024
Undertaking, but discovery can be ordered by the arbitrator as part of the procedural timetable.
Either party may apply to the arbitrator for leave to approach the Supreme Court of South Australia to
issue a subpoena (i.e., an order of the Court requiring production of certain specified documents) to
any relevant third parties.
Step 7: Evidence
Each party has the burden of proving the facts relied upon to support its claim or defence.
Whilst the parties are required, to the extent possible, to include or refer to documents and other
evidence on which they rely in their pleadings, there are often orders made for a separate stage of
evidence exchange.
The arbitrator may also order a party to produce documents they believe to be relevant and any
failure to produce any relevant document without good reason permits the arbitrator to draw an
adverse inference from such failure.
Step 8: Submissions
In the lead up to a hearing, further procedural orders may be made about the exchange of
submissions and conduct of the hearing.
Submissions are documents that summarise the parties’ respective factual and legal arguments.
‘Opening submissions’ are usually exchanged, either simultaneously or sequentially, shortly before
the commencement of a hearing.
Parties to an arbitration are often then required to make ‘closing submissions’ either orally or in writing
at the end of the hearing or shortly after it has concluded.
23
Step 9: Hearings
Upon request from either party, the arbitrator can hold hearings for the presentation of evidence by
witnesses, including expert witnesses, and/or for oral argument.
Otherwise, the arbitrator shall decide whether to hold such hearings or whether to determine the
matter on the basis of the documents and other materials provided by the parties.
Step 10: Award
An award shall be made in writing and shall be final and binding on the parties.
The parties undertake to carry out the award without delay.
The arbitrator shall state the reasons upon which an award is based, unless the parties have agreed
that no reasons are to be given.
Note that in addition to making a final award, the arbitrator will be entitled to make interim and
interlocutory awards as needed in the circumstances of the Arbitration.
10.3. MATTERS TO BE TAKEN INTO CONSIDERATION BY THE
APPOINTED ARBITRATOR
In making an award the arbitrator must take into account:
• the principles, methodologies and provisions set out in the IAU – the award should be consistent
with the IAU and its objectives;
• ARTC’s legitimate business interests and investment in the Network – this reflects section 44X(a)
of the CCA;
• any additional investment that the Applicant or ARTC has agreed to undertake – for example, if
additional expenditure is required to facilitate the service requested, the costs and funding of this
expenditure will be relevant to the award;
• the interests of all persons who have rights to use the Network–- this reflects section 44X(c) of the
CCA as existing users should not generally be adversely affected by the award;
• the operational and technical requirements necessary for the safe and reliable operation of the
Network – safety is of paramount importance and any impacts on the reliability of network for all
users needs to be considered;
• the economically efficient operation of the Network – operational efficiency is a key objective of
the IAU and ARTC’s operation of the network;
• the costs of providing the Services requested, including the particular characteristics of the
relevant Service, which includes axle load, speed, wheel diameter, Train length, origin and
destination, number and length of intermediate stops, departure and arrival times and days of the
week – for example, any special characteristics of the Service requested should be considered
particularly if they impact safety, other users or reliability or efficiency of the network;
• the commercial and logistical impacts on ART’'s business of the Services requested compared to
the Standing Offer for Reference Services – for example, any efficiency impacts of a non-
Reference Service on ARTC’s business should be considered;
• formal offers tabled and rejected by the parties – this provides the arbitrator with a clear
understanding of the parties’ respective positions and should incentivise parties to put in
reasonable offers before proceeding to arbitration;
24
• the factors listed in clause 4.2 of the IAU (as applicable) which are the factors to be considered by
ARTC in differentiating charges between Services, being:
• the term of the Access Agreement;
• the potential for growth of the business;
• the opportunity costs to ARTC
• the consumption of ARTC’s resources, including relative Capacity consumption;
• the credit risk associated with the business;
• the market value of the Train Path sought;
• the Segments of the Network relevant to the Access being sought;
• previously negotiated Charges agreed under the terms of the IAU, where relevant as
published by ARTC; and
• changes request by the Applicant to the ITAA;
• factors relating to the industry, on the basis that the arbitrator should be cognisant of industry
issues including:
• comparative rates of return;
• risks to the rail industry; and
• relativity of price to overall supply chain costs; and
• any other matters that the Arbitrator thinks are appropriate to have regard to.
25
11. ATTACHMENTS
26
ATTACHMENT 1: CUSTOMER ENGAGEMENT LIST
AND OPPORTUNITIES
3801 Ltd
Aurizon Operations Ltd
Bowmans Intermodal Pty Ltd
OneRail FLA
Journey Beyond
John Holland Pty Ltd
Lachlan Valley Railway Society Co-operative Ltd
Martinus Rail Pty Ltd
Metro Trains Melbourne Pty Ltd
NSW Trains
Pacific National Pty Ltd
QUBE Logistics (Rail) Pty Ltd
Rail Motor Society Inc
SCT Opco Pty Ltd
Southern ShortHaul Railroad Pty Ltd
Speno Rail Maintenance Australia Pty Ltd
Sydney Rail Services
Sydney Trains
Transport Heritage NSW
UGL Regional Linx Pty Ltd
V/Line Passenger Pty Ltd
Ventia Australia Pty Ltd
Other
GrainCorp
Dept of Transport Vic
Port of Melbourne
Transport for NSW
ARC Infrastructure
27
28
ATTACHMENT 2: SECTIONAL REVIEW OF AMENDMENTS TO THE 2008 IAU IN
THE 2024 IAU
Section of the
Undertaking
Title
Scope of the Section
Basis for Change
Part 1:
Preamble
Covers the background and objectives of the
IAU, including ACCC information requests.
Clause inserted to meet ACCC requests for information.
This reflects the ACCC’s legislative powers but simplifies
the request process for the ACCC.
Part 2:
Scope and
Administration of
Undertaking
Covers scope of the IAU, legislative basis for
its approval, term, ability to vary during the
term and contact details.
Term extended to 30 June 2029 to provide for 5 year term
with consequent deletion of 2008 IAU specific clauses in
respect of midterm reviews.
Part 3:
Negotiating for Access
Defines the obligations on each party and the
process and timelines for negotiating access,
including information to be provided and
dispute resolution.
Section contains significant amendments to reflect the
switch to a commercial arbitration framework for dispute
resolution. ARTC believes that commercial arbitration is
better equipped to deliver the commercial agility required to
grow rail volume and drive modal shift.
Part 4:
Pricing Principles
Defines the key principles underpinning pricing
for the reference service, including the limits on
charge differentiation, the structure of charges,
the standing offer and the publication of
charges.
Section contains significant amendments given the new
framework.
References to maximum revenue and the parameters that
establish that limit (e.g., Asset Bases, DORC, etc) are
removed.
Pricing limits are removed from this section and replaced
with a reference to current pricing per a new Schedule J.
CPI formula amended to cap Charge increases at CPI each
year (maintaining catch-up mechanism).
29
Section of the
Undertaking
Title
Scope of the Section
Basis for Change
Part 5:
Management of
Capacity
Outlines methodology for analysing impact on
capacity of access requests and how that
capacity is allocated and potentially transferred
by Operators.
No material changes.
Part 6:
Network Connections
and Additions
Defines the process for the management of
projects related to new connections or
additional capacity to the network.
New clause added committing ARTC to the annual
publication of, and consultation on, an INDS which frames
the potential projects required to meet growth scenarios.
This provides the ACCC and other stakeholders comfort on
project transparency given removal of Schedule H.
Part 7
Network Transit
Management
Defines ARTC’s objective in Train
Management.
No material changes.
Part 8
Performance Indicators
Defines ARTC’s commitment to maintain the
network and publish KPI’s consistent with that
commitment.
No material changes.
Part 9
Definitions and
Interpretation
Defines key terms used throughput the
Undertaking.
Amended as required to give effect to amendments
discussed elsewhere including changes to titles of
legislation.
Schedule A
Access Application
Template form for potential Access Seeker to
complete and form of Arbitration Agreement.
This form requires both parties to enter into an Arbitration
Agreement to ensure there are no questions of jurisdiction
for the arbitrator.
Schedule B
Information to
Accompany Access
Application
Specific requirements which must be met by
potential applicants.
No material changes.
30
Section of the
Undertaking
Title
Scope of the Section
Basis for Change
Schedule C
Essential Elements of
Access Agreement
Defines the essential elements of any Access
Agreement entered into by ARTC under the
IAU.
No material changes.
Schedule D
Indicative Track Access
Agreement as at
Commencement Date
Provides transparency on the Track Access
Agreement and commercial arrangements
which underpin current pricing.
Includes amendments proposed in 2018 to ensure ITAA is
consistent with the actual TAA’s in place with current
Customers.
Schedule E
Network
Provides specific details on the parts of
ARTC’s network covered by the IAU.
Expanded to include key segments currently not part of the
2008 IAU – MFN and Border Loop to Acacia Ridge.
Schedule F
Network Management
Principles
Outlines the key Train Decision Factors that
underpin operations on ARTC’s Interstate
Network.
No material changes.
Schedule G
Performance Indicators
Defines Service Quality Performance
measures covering Reliability, Network
Availability, Transit Time, Track condition and
temporary speed restrictions as well as
periodic reporting of ARTC unit costs.
No material changes.
Previous
Schedule H
Capital Expenditure
Defined the expected projects to be
undertaken on the network from 2008 and their
expected cost – with obligations to inform the
ACCC of cost variances.
Schedule has been omitted given removal of asset base
references and inclusion of INDS to address project
transparency.
New Schedule
H
Segments
Defines the regulatory segments included in
the Undertaking.
Segments updated for accuracy – removal of Appleton
Dock Jct to Footscray Road and inclusion of MFN and
Border Loop to Acacia Ridge.
31
Section of the
Undertaking
Title
Scope of the Section
Basis for Change
New Schedule I
Annual Reporting -
information provision
and timing
New schedule to meet ACCC requirements of
transparency on ARTC’s cost and revenue
performance.
ARTC to publish Performance Indicators, Access revenue,
volumes, maintenance costs, rail infrastructure capital, non-
maintenance operating costs, published financial reports,
and major project capital data in addition to the current
reporting requirements set out in Schedule G.
If the data contains Confidential Information it will be
provided to the ACCC on a confidential basis.
New Schedule
J
Standing Offer
Defines ARTC’s current service offerings,
pricing (excluding GST) and Reference Service
characteristics.
Forms the basis for pricing commitments.
32
ATTACHMENT 3: SPECIFIC CHANGES
Interstate Access Undertaking
Part
Clause Reference
Amendment
1
Details
Address updated to 11 Sir Donald Bradman Drive, Keswick Terminal, SA 5035 (globally).
Trade Practices Act amended to Competition and Consumer Act (globally).
1.2 (Objectives)
Removed references to “methodologies” and “revenue limits” given the removal of RAB methodology.
1.3 (Request for information)
New clause: ACCC has the ability to request information with notice to ARTC.
If ARTC considers that the ACCC’s request is unreasonable, it may notify the ACCC and advise how the
request may be modified to address ARTC’s legitimate concerns, the ACCC will then notify ARTC of its
decision after receiving such a notice.
2
2.3 (Term)
Term amended from 30 June 2021 to 30 June 2029.
2.4 (Review of Undertaking)
Removed Capital Expenditure table in Schedule H.
Removed requirement to review IAU on every fifth anniversary.
2.7 (Contact Details and
Website)
References to “Indicative Access Charges for Indicative Services” amended to “Standing Offer for
Reference Services” (globally).
As requested by the ACCC, obligation for ARTC to publish its Standing Offer for Reference Services and
prices for negotiated Services moved from clause 2.7 to clause 4.6.
Included the INDS to be published on ARTC’s website.
References to “Indicative Access Agreement” amended to “Indicative Track Access Agreement” (globally).
3
3.3 (Provision of Information)
Removed DORC values, and incremental cost and Economic Cost from list of information that ARTC may
provide to Applicants.
33
Part
Clause Reference
Amendment
3.4 (Parties to Negotiation)
Given the introduction of commercial arbitration, issues which were previously referred straight to the ACCC
as the arbitrator (e.g., if ARTC considers an Applicant’s request for Access is frivolous in nature) will now
proceed through the dispute resolution process as the starting point.
3.8 (Indicative Access
Proposal)
Per clause 3.4 above, specific issues will now proceed through the dispute resolution process.
3.10 (Negotiation Process)
Clause 3.10(b)(v) is covered by clause 3.10(b)(iv) and has been omitted for redundancy.
3.12.2 (Negotiation)
By mutual agreement in writing, parties can extend the period between a Dispute Notice being served and
the senior representative negotiation taking place.
3.12.3 (Executive negotiation)
New clause: Executive negotiation step brought forward – previously executive negotiation occurred as the
first step in the mediation procedure, whereas now it occurs before commencing mediation.
3.12.4 (Mediation)
Updated mediation guidelines (previous guidelines no longer in force).
3.12.5 (Arbitration)
Arbitrator no longer ACCC and arbitration regime revised to commercial arbitration.
ACICA Arbitration Rules apply. On this basis, clause generally condensed by omitting matters which are
dealt with in the ACICA Arbitration Rules (e.g., joinder).
ARTC and Applicant in dispute are to execute an Arbitration Agreement (included in Schedule A) prior to
referring the dispute to arbitration.
In addition to matters the arbitrator must already take into account, the arbitrator must now take into account
the costs of providing the services, the commercial and logistical impacts on ARTC’s business compared to
the Standing Offer for Reference Services, formal offers tabled and rejected by the parties, the charge
differentiation factors listed in clause 4.2, and factors relating to industry.
In making an award, the arbitrator may:
• Specify the terms and conditions of the Service.
34
Part
Clause Reference
Amendment
• Require ARTC to extend the Network.
• Require ARTC to permit Applicant interconnection to the Network.
• Specify the extent to which the award overrides an earlier award.
In making an award, the arbitrator must not:
• Prevent an existing user from obtaining a sufficient amount of the Service to be able to meet the user’s
requirements.
• Deprive any person from an existing contractual right.
• Make an award that results in the Applicant becoming the owner of any part of the Network without the
consent of ARTC.
• Make an award that requires ARTC to bear some or all of the costs associated with extending the
Network, maintaining extensions of the Network, interconnections to the Network.
If the Applicant does not enter into a TAA consistent with the award, the Applicant must not give a Dispute
Notice about the same or a substantially similar service for one year from the date of the award.
Clarifies that neither party will have a right of appeal under section 34A of the Commercial Arbitration Act but
parties retain other appeal rights.
ARTC will notify ACCC of Disputes referred to arbitration and provide ACCC with a copy of any award made
by an arbitrator under clause 3.12.5, given the confidential nature of arbitral awards, general publication is
not considered appropriate.
4
4.2 (Charge Differentiation)
Included the “changes requested by the Applicant to the ITAA” and “relative Capacity consumption” to the
list of factors ARTC may have regard to.
Removed of explanatory comment on Capacity consumption.
4.3 (Limits on Charge
Differentiations)
Included of “applicable non-price terms” as relevant factor for ARTC to consider in relation to whether two
Services are alike.
35
Part
Clause Reference
Amendment
Previous 4.4 (Revenue
Limits)
Clause deleted given removal of previous pricing methodology.
4.4 (Structure of Charges)
Removed references to “Excess network occupancy component” (globally).
4.5 (Standing Offer)
Clarified that ARTC may annually vary the Standing Offer specifically on 1 July each year.
Reference Service characteristics moved to Schedule J.
Pricing tables moved included to Schedule J.
CPI formula amended to cap Charge increases at CPI each year (maintaining catch-up mechanism).
Removed mechanism to determine TV
i
for sixth Determination Date given the IAU has a five year term.
4.6 (Publication of Charges)
As noted in relation to clause 2.7 above, ARTC’s obligation to publish Charges moved from clause 2.7 to
this clause 4.6 as requested by the ACCC. If ARTC cannot de-identify a Customer, ARTC is required to only
publish what it can reasonably do so in the circumstances
6
6.1 (Interstate Network
Development Strategy)
New clause: Development, publication and consultation on the indicative Interstate Network Development
Strategy.
On completion of a preferred capacity expansion option, ARTC to prepare and publish on its website a
“close-out report” for that project.
6.3 (Additional Capacity
sought by Applicants)
Amended to clarify that (1) ARTC must provide Applicant with reasons in writing for refusal of Additional
Capacity, and (2) Applicant requests for Additional Capacity need not relate to the INDS.
Removed reference to WACC in clause 6.3(d)(ii).
6.4 (Additional Capacity
sought by ARTC for the
benefit of the rail industry)
Replaced reference to “ARTC Corridor Strategy” with INDS.
Removed paragraph which provided that efficient expenditure will be included in Capital Expenditure.
36
Part
Clause Reference
Amendment
6.5 (Transport (Compliance
and Miscellaneous) Act 1983
(VIC))
Legislation and position title updated for Victorian Act.
9
9.1 (Definitions)
Removed of definitions relevant to former pricing methodology: Capital Expenditure, Ceiling Limit,
Depreciation, Economic Cost, Floor Limit, Indicative Access Charges, Indicative Services, Non-Segment
Specific Assets, Non-Segment Specific Costs, Prudent, Rate of Return, Segment-Specific Assets, Segment-
Specific Costs, and Third Party Works.
General tidy-up of definitions: CCA, Corporations Act, position titles, and Rail Safety Acts.
Definition of “Applicant” updated to expressly include existing Customers seeking new or additional Train
Paths.
Included definitions of Arbitration Agreement, Commencement Date, Interstate Network Development
Strategy, Reference Services, and Standing Offer.
Sch A
Access Application
Given that the IAU is an undertaking by ARTC in favour of the ACCC (as opposed to an agreement between
ARTC and the Applicant), Schedule A now requires acknowledgement from the Applicant that when
submitting an Access Application it agrees to be bound by the dispute resolution procedures in the IAU.
The form of the Arbitration Agreement is attached to Sch A.
Sch C
Essential Elements of Access
Agreement
Removed reference to “excess network occupancy component” (globally).
Sch E
Network
Reference to “Victorian Rail Track” amended to “VicTrack” (globally).
Reference to “RIC and SRA” amended to “Transport for NSW”.
Updated to include MFN and Border Loop to Acacia Ridge.
Reference to “RailCorp” amended to “Transport Asset Holding Entity of NSW” (“TAHA”) (globally).
Sch F
Network Management
Principles
References to Newcastle Station in definition of “Commuter Peak Services” removed.
37
Part
Clause Reference
Amendment
Previous
Sch H
Capital Expenditure
Schedule removed entirely.
New Sch H
Segments
Segments updated for accuracy.
Sch I
Annual Reporting –
information provision and
timing
New Schedule: ARTC is required to publish a report on its website each year detailing Performance
Indicators, Access revenue, volumes, maintenance costs, rail infrastructure capital, and non-maintenance
operating costs (including Network control and overheads) for each Segment of the Network. Additionally,
ARTC is to publish financial reports for the purpose of outlining the accounting depreciation of ARTC’s asset
base.
ARTC must include in the annual report, information regarding the completion of major projects during the
IAU period, this includes a description of the relevant major projects, any published business case or project
assessment which has been shared with stakeholders, and the final capital cost and associated data.
If the data contains Confidential Information it will be provided to the ACCC on a confidential basis.
Sch J
Standing Offer
New Schedule: Included pricing tables (ex GST)
Signing
Block
ACCC has requested that both parties execute the IAU
38
Indicative Track Access Agreement
Part
Clause Reference
Amendment
N/A
Details
Address updated to 11 Sir Donald Bradman Drive, Keswick Terminal SA 5035 (globally).
1
1.1 (Definitions)
General tidy-up amendments: TPA changed to CCA, Corporations Act, Rail Safety Acts, and removal of RIC
and SRA (globally).
Amended terminology in relation to Charges: “Indicative Access Charges” amended to “Standing Offer”, and
“Indicative Services” amended to “Reference Services” (globally).
Omission of Excess Network Occupancy Charge (globally).
Definition of “Accrediting Authority” added, definition of “Standards updated”.
2
2.7 (Manner of Control of the
Network by ARTC)
ARTC’s control of Network qualified by the words “so far as is reasonably practicable”.
2.9 (Renegotiation of Scheduled
Train Paths)
Updated to provide that the renewal of Scheduled Train Paths and new track access agreements, are to be
determined in accordance with the Access Undertaking that will be in force at the time the Scheduled Train
Paths expire.
4
4.3 (Excess Network Occupancy
Charges)
Removed clause.
4.4 (Variation of Charges)
Amended to clarify that Standing Offer for Reference Services may be amended by CPI once each year
(rate card to be published in Schedule 3).
Amended to clarify that negotiated Charges are set out and amended in accordance with Schedule 3 (i.e.,
not subject to the CPI cap on price increases but subject to alternative charge mechanism agreed with
Operator).
As per the IAU, CPI reset at sixth Determination Date deleted on the basis that the IAU has a five year term.
4.5 (Transport (Compliance and
Miscellaneous Act) 1983 (VIC))
Legislation and position title updated for Victorian Act.
39
Part
Clause Reference
Amendment
4.7 (Interest)
Alternative default interest rate simplified to the corporate overdraft interest rate published on the CBA
website. This is to avoid the administrative burden of getting the interest rate in writing from NAB.
4.10 (Goods and Services Tax)
Definition of “Input Tax Credit” amended
5
5.4 (Rolling Stock)
Adjustments to Operator’s requirements for rolling stock (e.g., must be fit and proper for use and operated
by properly trained and qualified personnel who exercise due diligence and care).
5.6 (Conduct of ARTC)
With respect to ARTC’s obligation not to differentiate between Operators, “Indicative Access Charges”
amended to “proposed Charges”.
Consistent with the IAU, ARTC is permitted to have regard to applicable non-price terms when determining
whether characteristics of two Services are alike.
5.7 (Removal of Rolling Stock from
Network)
Adjusted to allow ARTC to remove Train from Network where required.
6
6.1 (ARTC to Repair and Maintain
the Network)
Updated to refer to restrictions or Instructions issued from time to time by ARTC.
6.2 (Operating Restrictions)
Updated to allow ARTC to issue Instructions to Operator including in relation to speed and weight.
9
New 9.9 (Cancellation of Services)
Separated from ‘Cancellation of Scheduled Train Paths’ clause for clarity.
11
11.4 (Investigation of Incidents)
Amended to clarify that on request, each party will co-operate reasonably with an investigation.
13
13.8 (Environmental Manual)
Removed clause requiring the Operator to comply with Environmental Manuals.
40
Part
Clause Reference
Amendment
15
15.2 (Definitions)
Included definition for “Third party liability”.
“Loss or Damage” capitalised and defined.
“Loss or Damage” distinguished from ‘loss and damage’ for clarity. “Loss or Damage” refers to property
damage and the related legal costs, whereas ‘loss and damage’ is used in the generic sense.
15.6 (Third Party Liabilities)
New clause: inserted on Third Party Liability. Clarifies the parties are potentially liable to each other for third
party liability arising out of negligence or breach of statutory duty of the other party (but not where the
liability arises out of breach of the agreement).
More specifically, the changes provide that when a third party seeks to recover from ARTC or the Operator:
• both ARTC and the Operator must take the benefit of any law or contractual provision that limits the
liability of ARTC or the Operator;
• ARTC and the Operator are only permitted to seek contribution from the other on the basis of
negligence or breach of statutory duty but not because of any breach of the agreement; and
• ARTC and the Operator release each other from all claims (excluding the legal costs associated with
defending a claim by a third party caused by a breach of the agreement) for contribution, except to the
extent that the third party liability has been caused by negligence or breach of statutory duty.
Changes are consistent with the Hunter Valley Access Undertaking Operator Sub-Agreement which has
been in operation since 2011).
15.8 (Obligation to
Mitigate/Betterment)
Amended to include the replacement of damaged assets.
Restoration, repair or replacement of damaged assets now qualified by the words “to prevailing standards in
the most cost efficient way available”.
41
Part
Clause Reference
Amendment
Clarifies that “new for old” is acceptable if it is the most cost efficient way to restore, repair or replace the
damaged assets.
16
16.2 (ARTC’s Insurance Policies)
Removed requirement for ARTC to publish its insurance premiums.
Removed requirement for ARTC to apply savings in premiums towards repairs, maintenance or Network
upgrades.
17
17.3 (Mediation)
Mediation guidelines updated (same as IAU).
20
20.3 (Force Majeure)
Removed definitional requirement for Force Majeure event to exclude negligence.
24
24.1 (Notice)
Notice requirements generally updated, for example, to remove facsimile and include email.
24.2 (Deemed Notice)
Same as above.
28
Counterparts
Facsimile replaced with email.
Sch 1
Network
Generally updated for accuracy.
MFN included.
References to “Victorian Rail Track” replaced with “VicTrack” (globally).
References to “RIC and SRA” replaced with “Transport for NSW” (globally).
References to “RailCorp” replaced with “Transport Asset Holding Entity of NSW’ (“TAHE”).
Sch 3
Charges
Updated to include placeholder for Standing Offer rate card.
Updated to include placeholder for negotiated Charges, including a placeholder for ARTC to insert an
agreed process to vary any negotiated Charges (i.e., because they are not subject to the annual CPI cap).
Minor amendments
42
Minor amendments (i.e., formatting, cross references, etc) have been omitted from the tables above.
43
ATTACHMENT 4: FLOOR CALCULATIONS
2019 IAU Segment Description
Fixed
Maintenance
Variable
Maintenance
Total
Maintenance
Revenue
Var
Maint/Rev
GTK's TKM's
Business Unit
Overheads
Shared Mntce
Network
Control
Corporate OH Total Costs
Dry Creek – Parkeston 5,964,297 3,863,965 9,828,262 94,399,303 4% 20,887,813 5,835,124
Dry Creek – Pelican Point 489,602 75,375 564,977 294,290 26% 44,571 26,540
Dry Creek – Spencer St (Melbourne) 9,007,078 4,724,069 13,731,147 32,102,455 15% 6,845,972 2,814,952
Crystal Brook – Parkes 4,708,240 3,122,044 7,830,284 31,467,476 10% 6,641,150 2,397,805
Cootamundra - Parkes 1,193,159 744,787 1,937,946 4,277,085 17% 907,907 378,499
Melbourne (Tottenham) – Macarthur 14,630,469 9,251,390 23,881,859 56,277,136 16% 12,166,709 8,242,088
Moss Vale – Unanderra 1,133,376 264,157 1,397,533 2,530,591 10% 153,344 83,855
Newcastle –Acacia Ridge 10,194,113 7,307,229 17,501,343 43,658,662 17% 6,373,481 4,503,501
Port Augusta – Whyalla 63,126 110,482 173,607 919,813 12% 129,647 70,566
Southern Sydney Freight Line incl Sefton Park Junction – Flemington South 1,063,593 732,737 1,796,330 5,432,062 13% 631,626 258,272
Metropolitan Freight Network Chullora Junction – Port Botany 1,975,966 342,016 2,317,983 5,743,072 6% 509,619 317,672
50,423,019 30,538,251 80,961,270 277,101,945 11% 55,291,838 24,928,875 33,252,663 19,722,507 29,708,650 32,358,386 196,003,476
2020 IAU Segment Description
Fixed
Maintenance
Variable
Maintenance
Total
Maintenance
Revenue
Var
Maint/Rev
GTK's TKM's
Business Unit
Overheads
Shared Mntce
Network
Control
Corporate OH
Dry Creek – Parkeston 6,663,472 4,709,898 11,373,369 98,059,735 5% 21,678,107 5,842,834
Dry Creek – Pelican Point 355,490 40,303 395,793 368,573 11% 53,874 30,018
Dry Creek – Spencer St (Melbourne) 9,311,512 4,933,435 14,244,947 36,053,017 14% 7,679,312 3,117,287
Crystal Brook – Parkes 4,872,972 4,533,808 9,406,780 34,744,894 13% 7,294,338 2,535,985
Cootamundra - Parkes 1,287,931 734,903 2,022,835 4,338,406 17% 912,047 404,764
Melbourne (Tottenham) – Macarthur 17,898,465 11,001,700 28,900,164 54,302,103 20% 11,482,279 7,868,681
Moss Vale – Unanderra 1,113,563 713,164 1,826,727 1,816,703 39% 125,028 56,512
Newcastle –Acacia Ridge 11,136,757 9,358,760 20,495,517 39,727,838 24% 5,430,498 3,906,049
Port Augusta – Whyalla 209,721 60,905 270,626 986,919 6% 139,337 71,052
Southern Sydney Freight Line incl Sefton Park Junction – Flemington South 803,623 121,843 925,466 5,333,876 2% 587,008 246,384
Metropolitan Freight Network Chullora Junction – Port Botany 2,051,617 539,201 2,590,818 5,507,559 10% 476,579 305,537
55,705,122 36,747,920 92,453,042 281,239,623 13% 55,858,407 24,385,102 39,501,509 19,250,448 30,180,548 32,696,964 214,082,511
2021 IAU Segment Description
Fixed
Maintenance
Variable
Maintenance
Total
Maintenance
Revenue
Var
Maint/Rev
GTK's TKM's
Business Unit
Overheads
Shared Mntce
Network
Control
Corporate OH
Dry Creek – Parkeston 6,501,828 5,227,256 11,729,084 104,569,203 5% 23,271,863 6,030,290
Dry Creek – Pelican Point 359,770 117,887 477,657 566,431 21% 85,785 40,247
Dry Creek – Spencer St (Melbourne) 9,700,200 5,496,650 15,196,850 35,189,440 16% 7,626,034 2,850,405
Crystal Brook – Parkes 5,460,714 3,191,793 8,652,507 28,607,198 11% 5,967,357 2,058,087
Cootamundra - Parkes 1,701,355 892,203 2,593,558 4,853,245 18% 1,024,689 440,321
Melbourne (Tottenham) – Macarthur 22,296,204 13,844,737 36,140,941 58,579,947 24% 12,700,205 7,876,891
Moss Vale – Unanderra 1,160,106 416,671 1,576,777 3,243,354 13% 316,020 144,853
Newcastle –Acacia Ridge 11,233,634 9,210,590 20,444,223 40,249,201 23% 5,547,060 3,750,614
Port Augusta – Whyalla 147,698 168,035 315,733 1,340,249 13% 188,866 78,621
Southern Sydney Freight Line incl Sefton Park Junction – Flemington South 1,021,998 288,150 1,310,149 5,495,442 5% 618,560 249,381
Metropolitan Freight Network Chullora Junction – Port Botany 2,336,663 248,082 2,584,746 6,036,520 4% 534,458 315,323
61,920,171 39,102,053 101,022,224 288,730,231 14% 57,880,898 23,835,032 37,103,523 18,562,328 32,410,269 33,950,739 223,049,083
44
2022 IAU Segment Description
Fixed
Maintenance
Variable
Maintenance
Total
Maintenance
Revenue
Var
Maint/Rev
GTK's TKM's
Business Unit
Overheads
Shared Mntce
Network
Control
Corporate OH
Dry Creek – Parkeston 7,475,050 2,232,181 9,707,231 106,043,238 2% 23,193,695 6,174,626
Dry Creek – Pelican Point 415,929 13,398 429,327 537,783 2% 85,054 39,464
Dry Creek – Spencer St (Melbourne) 11,655,344 4,620,903 16,276,247 34,837,520 13% 7,426,430 2,888,947
Crystal Brook – Parkes 6,309,298 2,935,991 9,245,289 25,202,321 12% 5,206,198 1,943,501
Cootamundra - Parkes 2,410,712 904,307 3,315,019 5,773,308 16% 1,203,072 524,298
Melbourne (Tottenham) – Macarthur 26,848,120 15,503,288 42,351,408 59,346,657 26% 12,847,441 7,862,658
Moss Vale – Unanderra 1,045,786 394,341 1,440,126 2,776,490 14% 400,219 142,434
Newcastle –Acacia Ridge 12,462,836 9,092,488 21,555,324 40,560,898 22% 5,615,869 3,707,338
Port Augusta – Whyalla 97,642 20,543 118,185 1,928,019 1% 267,744 88,962
Southern Sydney Freight Line incl Sefton Park Junction – Flemington South 1,160,801 138,045 1,298,846 5,933,628 2% 632,080 265,516
Metropolitan Freight Network Chullora Junction – Port Botany 2,583,983 115,125 2,699,108 6,061,564 2% 559,584 320,886
72,465,501 35,970,610 108,436,111 289,001,425 12% 57,437,386 23,958,629 38,444,360 21,207,345 33,976,097 36,197,102 238,261,014
2023 IAU Segment Description
Fixed
Maintenance
Variable
Maintenance
Total
Maintenance
Revenue
Var
Maint/Rev
GTK's TKM's
Business Unit
Overheads
Shared Mntce
Network
Control
Corporate OH
Dry Creek – Parkeston 8,552,819 5,123,798 13,676,617 115,644,285 4% 23,535,495 6,417,983
Dry Creek – Pelican Point 384,526 8,954 393,481 538,193 2% 78,102 41,785
Dry Creek – Spencer St (Melbourne) 14,059,044 5,508,403 19,567,447 40,286,598 14% 8,167,869 3,158,396
Crystal Brook – Parkes 5,868,011 2,223,612 8,091,623 21,617,857 10% 4,179,977 1,626,031
Cootamundra - Parkes 2,249,804 854,986 3,104,790 4,647,918 18% 921,068 393,258
Melbourne (Tottenham) – Macarthur 29,548,210 15,736,670 45,284,880 64,394,829 24% 12,953,437 8,282,404
Moss Vale – Unanderra 1,664,302 601,049 2,265,351 2,663,969 23% 368,022 202,234
Newcastle –Acacia Ridge 14,444,046 8,549,160 22,993,206 42,370,682 20% 5,326,547 4,156,232
Port Augusta – Whyalla 53,999 2,046 56,046 2,334,146 0% 312,217 90,933
Southern Sydney Freight Line incl Sefton Park Junction – Flemington South 1,299,245 120,455 1,419,700 6,587,371 2% 642,970 275,259
Metropolitan Freight Network Chullora Junction – Port Botany 3,326,473 57,229 3,383,702 6,243,349 1% 556,302 321,271
81,450,479 38,786,363 120,236,842 307,329,197 13% 57,042,005 24,965,784 31,538,395 29,269,358 36,568,711 37,785,213 255,398,520
45
ATTACHMENT 5: ARBITRATION AGREEMENT
TEMPLATE
Arbitration Agreement
Date [Insert]
Parties
Australian Rail Track Corporation Limited (ABN 75 081 455 754) (ARTC)
and
[Insert party’s name] (ABN [Insert]) (the Applicant)
(collectively, the Parties)
Agreement to Arbitrate
1 In this agreement terms have the meaning given to them in the 2024 Access Undertaking (the
Undertaking) unless otherwise stated in this agreement.
2 The Parties agree that any Dispute between the Parties that is not resolved through the
processes contained in clauses 3.12.2, 3.12.3 or 3.12.4 of the Undertaking shall be finally
determined by arbitration.
3 Any arbitration between the Parties shall be governed by clause 3.12.5 of the Undertaking.
4 This agreement is a deed and is executed as a deed.
5 This Arbitration Agreement is governed by the laws of South Australia.
6 This Arbitration Agreement may only be amended by written agreement, signed by the
Parties.
7 This Arbitration Agreement may be signed in counterparts and all counterparts taken together
comprise the one document.
46
EXECUTED as a deed
Signing Page
SIGNED for and on behalf of Australian Rail Track
Corporation Limited ABN 75 081 455 754 by its
duly authorised officer and in the presence of:
)
)
)
Signature of Authorised Officer
Signature of Witness
Name of Authorised Officer
(BLOCK LETTERS)
Name of Witness
(BLOCK LETTERS)
Position of Authorised Officer
(BLOCK LETTERS)
SIGNED for and on behalf of [Insert applicant’s
name] ABN [Insert] by its duly authorised officer
and in the presence of:
)
)
)
Signature of Authorised Officer
Signature of Witness
Name of Authorised Officer
(BLOCK LETTERS)
Name of Witness
(BLOCK LETTERS)
Position of Authorised Officer
(BLOCK LETTERS)
47
