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SIGNIFICANT
CHANGES IN THE
STATE OF AFFAIRS
(CONTINUED)
2. Extension of 2011 Hunter Valley
Access Undertaking (HVAU):-
Following extensive negotiations, a
proposed 2017 HVAU was submitted to
the ACCC on 9 December 2016. The
ACCC released their draft decision on 20
April 2017 inviting submissions by 12 May
2017. ARTC disagreed with significant
aspects of the draft decision by the
ACCC and after careful consideration,
withdrew its application.
Following further negotiation with
Stakeholders and engagement with
the ACCC, and with the support of
Stakeholders, ARTC submitted a revised
2011 HVAU on 8 June 2017 which was
accepted by the ACCC on 29 June
2017. The revised HVAU will apply until
31 December 2021. ARTC’s financial
reporting for 30 June 2017 has been
undertaken on the basis of the agreed
variation.
3. EBA re-negotiation and Protected
Industrial Action:-
As indicated in last year’s report, both
Interstate and Hunter Valley business
units were affected by protected
industrial action early in the 2016/2017
financial year. These issues were
resolved without significant impact on
the customers and business.
ARTC has multiple EBA’s applicable
across its work force and continues to
negotiate with employees in good faith
to achieve mutually acceptable outcomes
that are in compliance with the Australian
Government Public Sector Bargaining
Policy applicable to ARTC and to
minimise the disruption to customers in
the event of further industrial action.
There were no other significant changes
in the state of affairs of the Group during
the year.
SIGNIFICANT
EVENTS AFTER
THE BALANCE DATE
On 14 August 2017, Aurizon announced
its intention to exit its Intermodal
business through a combination of
closure and sale. Subject to regulatory
approval, Aurizon has signed a binding
agreement with a consortium of Pacific
National and Linfox to sell its Queensland
Intermodal business, and a separate
binding agreement with Pacific National
to sell its Acacia Ridge Intermodal
Terminal. The sale transaction is
expected to be completed by June 2018.
The remainder of Aurizon’s Intermodal
business (outside of Queensland) will
be closed by 31 December 2017. The
possible implications for ARTC of the
Aurizon decisions are unclear but will be
closely monitored.
It is the opinion of the Directors of the
group that no other event has arisen that
would significantly affect the operation of
the Group, the result of those operations,
or the state of affairs of the Group in
future financial years.
LIKELY DEVELOPMENTS
AND EXPECTED RESULTS
OF OPERATIONS
Likely developments and the expected
results of operations of ARTC are
contained in the Chairman’s and the
Chief Executive Officer’s Reports.
DIRECTORS’ REPORT (CONTINUED)
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