Gladstone gets a tick from ACCC for towage tender process

Gladstone Ports Corporation has won approval for its proposed towage tender process from the Australian Competition and Consumer Commission (ACCC).

The competition watchdog said on Friday that it saw benefit in the proposed tender process for towage services at the port and would allow a related third line forcing notification to stand.

"The ACCC believes that such a process is likely to stimulate competition between towage operators and this competitive process should deliver benefits to port users in the form of increased efficiency and cost savings," ACCC chairman Graeme Samuel said.

Third line forcing is a type of exclusive dealing conduct prohibited by the Trade Practices Act 1974.

It involves the supply of goods or services on the condition that the purchaser acquires goods or services from a particular third party.

By lodging a notification with the ACCC, businesses can obtain protection from legal proceedings under the Act.

Provided the ACCC does not object, protection commences 14 days after lodgment.

Under the Act, the ACCC will only object to and remove the immunity provided by an exclusive dealing notification when it is satisfied that any public benefits from the proposed arrangement would not outweigh the public detriments.

"The ACCC has considered a range of information including analyses by the Productivity Commission and PricewaterhouseCoopers, as well as the experience at other ports around Australia," Mr Samuel said.

"Based on the information available, the ACCC considers that the Port of Gladstone is likely to be most efficiently served by a single towage provider."