High Court Rules On Pilbara Rail Access

The High Court has handed down its decision in the case of BHP Billiton Iron Ore Pty Ltd v NCC. The Court had to decide whether two railway lines operated by BHP Billiton in the Pilbara region of Western Australia could be declared under Part IIIA of the Trade Practices Act 1974 (TPA).

The High Court unanimously held that the services for which declaration was sought do not involve 'the use of a production process' – in other words the services can be declared under Part IIIA of the TPA.

Implications

Although declaration of one of the rail networks, Mt Newman, had already been refused by the former Federal Treasurer it is now before the Australian Competition Tribunal.

In relation to the other rail network, the Goldsworthy line, the National Competition Council (NCC) has made a recommendation to the Federal Treasurer on a subsequent application for declaration. The Treasurer has until 28 October to decide whether or not to declare the service.