NSW Ports
Holds a 2013 deed under which the State of NSW must compensate it if container traffic at the Port of Newcastle exceeds a cap. The Federal Court and the Full Federal Court both held the arrangement lawful.
Responsibilities
- Operate Port Botany and Port Kembla under long-term lease
- Party to the Port Commitment Deeds entered into in 2013 for a 50-year term
This body is in the database because of a contract, not a process.
Under the Port Commitment Deeds, entered into in 2013 for a term of 50 years, the State of New South Wales must compensate the operators of Port Botany and Port Kembla if container traffic at the Port of Newcastle rises above a cap — reported by the ACCC as 30,000 TEU per annum, adjusted by an annual growth rate, and elsewhere as 50,000 containers a year.
The ACCC alleged the provisions were anti-competitive. On 29 June 2021 Justice Jagot dismissed the allegations in full, and the Full Federal Court dismissed the ACCC's appeal. The arrangement is lawful.
Nothing in that sentence is a regulatory failure. A state sold long-term rights and gave the buyer contractual protection for the revenue it was buying. The buyer paid for that protection. A court tested it twice.
It is here because it is the clearest case in this database of a binding constraint that is not a step in any process — no permit, no assessment, no queue, nothing a process map would ever show. See No permit stopped the Newcastle container terminal. A 2013 deed did, and it is lawful..
