The QMS was designed to reduce vessel waiting queues through a rationing process on exports from coal producers that aimed to limit the size of shipping queues and the consequential demurrage costs to the industry.

However, the ACCC, which first authorised the system in late 2005, has decided to not grant interim authorisation to the users of the Dalrymple Bay Coal Terminal to extend the shelf life of the QMS – a move which affects producers from Queensland’s Bowen Basin.

In a statement, ACCC chairman Graeme Samuel said the QMS was always considered as an appropriate short-term measure only and that until a long-term solution is developed the continuance of the QMS could potentially result in underinvestment in the coal chain and substantial losses in export revenues.

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

“The ACCC considers that the proposed extension of the QMS for a period of six months is not, in the absence of a long-term solution having been developed, in the public interest.”

While the regulatory authority said it recognised some progress had been made in discussions, Samuel also urged all involved parties to work together to finalise details of a long-term solution as soon as possible.

“It is open to parties to request interim authorisation again once a long-term solution has been developed,” he said.

“The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted by the ACCC."

The regulatory authority said applicants requested an extension for QMS permission for a maximum of six months, on a condition that a long-term solution is provided to the ACCC by March 31 next year.

The urgent interim authorisation for the parties to continue the system was requested as the current authorisation by the ACCC ends on Wednesday, December 31.