Yesterday the ACCC said it issued a draft determination proposing to deny authorisation to DBCT users to extend the operation of the QMS.

The government body added it had denied an urgent interim authorisation by applicants on December 10, resulting in the expiration of the previous QMS authorisation on December 31.

Justifying its decision, the ACCC said it had significant doubts as to whether the QMS would continue to be in the public interest beyond 2008, without evidence of a long-term solution being developed.

The ACCC also noted the reduced forecasts of coal demand indicate a reduced need for the QMS and the demurrage savings it may deliver.

ACCC chairman Graeme Samuel said the ongoing operation of the QMS is likely to reduce the incentive to develop a long-term solution.

He said further delays have the potential to cause significant flow on effects in terms of lost export revenue.

“At this stage the industry has only put forward a set of broad principles which may underpin a long-term solution, along with anticipated time frames for its development,” Samuel said.

“The ACCC recognises that recently, some progress has been made and encourages all industry participants to work together to finalise details of a long-term solution as soon as possible.”

The ACCC must go through a public consultation process and issue a draft determination before granting or denying authorisation of the QMS.

Submissions from interested parties in relation to the ACCC’s draft determination must be made by March 10.

QMS authorisation can provide immunity from court action for conduct that might raise concerns under the competition provisions of the Trade Practices Act 1974, according to the ACCC.

The Dalrymple Bay port serves 10 northern Bowen Basin coal mines.