CBH applies for court injunction

31 Jan, 2014 01:00 AM
CBH has a differing interpretation of a number of sections of the Code...

THE clash between Brookfield Rail and CBH looks no closer to being resolved after the grain giant headed to the courts last week.

CBH confirmed it has applied for a mandatory injunction requiring Brookfield Rail to provide the Economic Regulation Authority (ERA) with floor and ceiling prices for certain routes on its railway network.

However Brookfield has insisted these costs were submitted to the ERA in December.

According to Brookfield chief executive officer Paul Larsen, Brookfield has been fully co-operating the ERA in order to move the process forward under the Railways Access Code 2000, and ensuring it is following the rules of the Access Regime.

While the dispute between CBH and Brookfield was ongoing for much of last year, it was only in November that CBH turned to the ERA for assistance with negotiations.

Earlier this month the ERA invited public submissions on matters relevant to the determination of floor and ceiling costs.

The public has until February 3 to provide submissions, after which the ERA will either approve Brookfield Rail's floor and ceiling costs for access sought by CBH or make its own determination of those costs.

Mr Larsen said Brookfield's interpretation and compliance with the rules is consistent with the ERA's determination on Brockman Iron's access proposal for Fortescue Mining's railway last year.

"CBH has a differing interpretation of a number of sections of the Code, and have indicated they may be applying to the Supreme Court in the coming days to obtain further information based on their interpretations," Mr Larsen said.

A CBH spokesperson confirmed that the application to the Supreme Court was to obtain the floor and ceiling price and the costs that contribute to these prices.

"The CBH Group has requested that Brookfield Rail provide pricing by line section to ensure that line sections used by CBH are bearing an appropriate level of costs relative to the performance provided," the spokesperson said.

"This information is required to provide appropriately detailed information from which to base submissions to the ERA during the public consultation process, with submissions due on Monday, February 3, 2014."



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