Rail Access

The NSW Rail Access Undertaking

The NSW Rail Access Undertaking provides for third party access to certain parts of the NSW rail network owned by the Transport Asset Holding Entity (TAHE) (formerly Rail Corp) and the Australian Rail Track Corporation (ARTC).

The undertaking requires rail owners to:

• charge no more than the full economic costs of providing access
• charge at least the direct costs caused by trains using the rail line

TAHE and ARTC are required to submit information to IPART each year to demonstrate they have complied with the Undertaking.

The rail owners and the access seekers negotiate on prices and other conditions in accordance with the Undertaking.  We keep a register of who has entered into these agreements.

If the parties cannot agree on access, then either party can initiate arbitration. IPART may be the arbitrator or we can appoint a third party to undertake arbitration. We have published a recommended procedural framework for arbitrators that we appoint.

We recently reviewed the rail access regulatory framework and recommended changes to the NSW Government  that would increase the efficient use and investment in rail, and drive competition with road freight to lower freight costs, increasing productivity.

Rate of return and remaining mine life reviews

The Undertaking requires rail access owners to charge no more than the full economic costs providing access. As required by the Undertaking, IPART determines certain inputs to how the full economic costs are calculated. These are the:

• rate of return
• the remaining mine life.

We determine these inputs every 5 years and they are currently under review.

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