Australian Competition & Consumer Commission has released a draft proposing approval of Capacity Framework Arrangements for a solution towards the current capacity constraints in the Hunter Valley coal chain. These proposals will allow terminal operators and producers to more accurately make decisions regarding investment and expansion of capacity.

Mr Graeme Samuel chairman of ACCC said that "For the first time, coal producers will be able to sign long term contacts to secure export capacity at the port of Newcastle. The arrangements also support centralized modeling of contractible coal chain capacity and monitoring of coal chain performance standards, which should prevent large vessels forming queues offshore."

Before the proposal of these long term arrangements, the ACCC was requested to authorize various transitional measures designed to balance demand for coal loading services at the port of Newcastle with the levels of coal the Hunter Valley chain could deliver.

The applicants have been phasing in the Capacity Framework Arrangements over the last half of 2009, with expectation of being fully operational from January 2010.

(Sourced from www.miningaustralia.com.au)