PN calls for regulator to examine QR's Felix deal

Asciano told the regulator this week that the lower tariff QR used to seal the deal pointed to a question mark about the separation between QR's above-rail coal division and its below-rail operations.

Asciano said there was no "positive obligation" on QR Network, which shared directors with its parent state-owned entity, not to discriminate between above-rail operators, giving rise to conflict of interest issues.

However, QR said all negotiations had been transparent and independent.

"All commercial arrangements with Felix Resources have been entirely appropriate and independently negotiated by QR Network and the QR Coal businesses," a QR spokesman said yesterday.

"We do not intend to debate publicly specific commercial arrangements with our customers nor is it our role to comment on the processes of the independent regulator in determining access tariffs.

"However there has been absolute independence and transparency of these completely separate processes.

"We negotiated a new contract in the Hunter Valley on fair and commercial terms.

"It would appear that our competitor is simply becoming increasingly concerned about their inability to compete with QR in the national market on commercial terms."

Asciano said it had been told by Felix that the decision to go with QR for its Miverva mine on the West Blackwater line had been made with reference to above and below rail costs, a point Felix has reportedly disputed.