In its Minerals Industry Survey 2007, MCA addressed in detail the problems facing the east coast's transport corridors, offering up solutions to fix a currently complex system of multi-user and multi-owner public-private infrastructure with multi-agendas.
MCA said while large investment had been committed to addressing current bottlenecks, integration was one area that was ignored.
"Efficiency and effectiveness of Australia's export corridors, when there is high interdependency between mine production, track, trains and ports, is only as strong as the weakest link in the chain," the report pointed out.
While integration sounds good in theory, there are many factors that complicate it in the coal world, including the large volumes of product that need to be moved; the high number of mines with different operating parameters and commercial interests; a large range of customers with their own shipping requirements; and the overlay of different commercial and regulatory arrangements.
MCA pointed to WA's Pilbara model as a successful system that the east coast could use to reform its supply chain.
"The Western Australian Pilbara model, where the iron ore producers are the owners and operators of the rail system, and the ports are vertically integrated with aligned interests, has increased the responsiveness of the infrastructure - and has allowed it to capitalise on global conditions in a timely, effective and efficient manner," the report said.
The council said a long-term focus needed to be used when making infrastructure decisions and that a number of regulatory reforms would be required to integrate a system.
MCA called for uniform and effective national infrastructure markets and systems and improved market-based prices that "send the appropriate signals to consumers and suppliers, and cover long-run marginal costs and reflect time of use".
"The MCA supports shorter 20-year Uniform Capital Allowance effective lives for substantive assets (ports, rail etc) to bring forward tax deductions and to "free up" cash to facilitate greater investment," the report said.
"Further, the declaring of a legal right for third parties to seek access to privately built, owned and operated export infrastructure services via Part IIIA of the Trade Practices Act 1994 serves as a significant disincentive to invest in infrastructure and mine expansions with little significant commensurate benefit to the nation."
MCA's full article can be found at http://www.minerals.org.au/mis
