Brisbane cruise concerns

THE Carnival group’s priority berthing deal with the Port of Brisbane has prompted objections to the Australian Competition and Consumer Commission (ACCC), including concerns the arrangement will hinder other lines from entering the Brisbane market.

Under plans for the new Brisbane cruise terminal, the Port of Brisbane (PBPL) and Carnival plc have proposed a “take or pay” agreement in which the group’s ships will be allocated 100 berthing days at the facility to help underwrite its development ( Cruise Weekly 02 Nov).

The ACCC is examining the arrangement and has indicated it will provide a determination in the first quarter of next year.

It has released two submissions which raise concerns over the deal, both lodged confidentially by unnamed entities.

“The proposed agreement between PBPL and Carnival goes well beyond what is reasonably required to justify the investment by PBPL and will result in serious anticompetitive detriment because it makes it unlikely that any competing cruise operator will be able to successfully enter the Brisbane-based cruise market,” says the first submission.

The second says the arrangement will impact the ability of other ports to compete with Brisbane, and that Carnival will be limited in its capacity to choose alternative facilities.

In its original submission to the ACCC, Carnival and PBPL said the proposed development would have pro-competitive effects by adding terminal capacity, improving facilities and providing alternatives to Sydney.

The port and cruise operator have sought an 18-year authorisation for a project estimated to cost $158 million.