Report
Estimating the economic cost of Type Approval processes in the Australian rail industry
This report assesses the costs of the existing TA processes and based on consultation with industry participants (network operators, contractors, suppliers), assesses the extent to which these costs are excessive and the scope for direct and indirect cost savings to be achieved under alternative approaches.
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ACCC Airports monitoring
The ACCC monitors prices, costs and profits and quality of aeronautical services and car parking at Brisbane, Melbourne, Perth and Sydney airports in accordance with directions issued by the Assistant Treasurer under the Competition and Consumer Act 2010 (the Act) and under the provisions of the Airports Act 1996.
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Report
Review of the Western Australian Rail Access Regime
Western Australian Treasury has published a Final Decision Paper outlining the recommendations approved by Government. Synergies quantification of costs and benefits is included in Appendix 4.
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Report
The Rate of Return to Apply to ARTC’s Interstate Network
Synergies prepared a WACC report in support of ARTC’s 2018 Interstate Access Undertaking (IAU). Synergies had prepared the previous IAU WACC report in 2008 and has also assisted ARTC with its undertakings for the Hunter Valley coal network. For the 2018 submission, we updated our previous analysis with subsequent developments in regulatory precedent and academic evidence, along with changes in prevailing market conditions, which had moved markedly since 2008. ARTC has since withdrawn its undertaking ...
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Determining a WACC estimate for Port of Melbourne 2019
The purpose of this report is to provide an estimate of the return on capital for the Port of Melbourne (PoM) for its second regulatory year under the regulatory framework established by the Port Management Act (Vic) 1995 and Pricing Order. To determine an estimate of the return on capital that is consistent with the Pricing Order, the key requirement is that the Port Licence Holder (PoM) must use one or a combination of well-accepted ...
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CGC – Urban Transport Consultancy Stage 2
Synergies, in collaboration with Jacobs, was engaged by the Commonwealth Grants Commission (CGC) to review and improve the model currently used to determine State urban transport and infrastructure expenditure requirements. The model we proposed will help form the basis for the future allocation of transport-related GST funds.
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2018 WACC methodology review for WA railway networks
Synergies prepared a submission on behalf of Arc Infrastructure for the Economic Regulation Authority’s (ERA) 2018 WACC methodology review for regulated railways in Western Australia.
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Economic assessment of exclusive licensing of towage services at Port of Gladstone
Gilbert & Tobin engaged Synergies to provide advice in relation to a challenge by its client Svitzer to the Gladstone Ports Corporation’s (GPC’s) intention to maintain exclusive licensing of harbour towage service. Synergies’ advice was an economic assessment of the underlying assumptions and arguments used to support this exclusive towage licencing arrangement, including information disclosed in King & Wood Mallesons’ (KWM’s) submissions and Price Waterhouse Coopers’ (PwC’s) supporting submission.
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Determining a WACC estimate for Port of Melbourne 2018
The purpose of this report is to provide an estimate of the return on capital for the Port of Melbourne (PoM) for its second regulatory year under the regulatory framework established by the Port Management Act (Vic) 1995 and Pricing Order. To determine an estimate of the return on capital that is consistent with the Pricing Order, the key requirement is that the Port Licence Holder (PoM) must use one or a combination of well-accepted ...
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Risk Comparison Between Aurizon Network and Energy and Water Networks
Synergies examined the risk profile of Aurizon Network in order to assess comparability with regulated energy and water networks. The report concluded that, while regulation can modify the impact of commercial and market risks on a business, it cannot fundamentally alter the nature of the market risks borne by a business.
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Determining a WACC estimate for Port of Melbourne 2017
The purpose of this report is to provide an estimate of the return on capital for the Port of Melbourne (PoM) for its second regulatory year under the regulatory framework established by the Port Management Act (Vic) 1995 and Pricing Order. To determine an estimate of the return on capital that is consistent with the Pricing Order, the key requirement is that the Port Licence Holder (PoM) must use one or a combination of well-accepted ...
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ACRI Industry Stakeholder Survey 2016
Synergies was engaged by ACRI to design and implement a major survey of stakeholders operating in the rail industry. The aim of the survey was to identify stakeholder perspectives about the challenges and opportunities facing the Australian rail industry, together with collecting views about strategic priorities going forward. The survey provided fresh insights about issues and stakeholder concerns. ACRI has published our report on its website and intends to commission a follow up survey to ...
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An Economic Approach to Heavy Vehicle Road Pricing Reform
Synergies was engaged by Aurizon to prepare a response on behalf of the Freight on Rail Group (Aurizon, ARCT and Asciano) to the application of an economic pricing framework to land freight transport infrastructure. The report examined alternative pricing approaches for road and rail freight services, having regard to several objectives and principles and reviewed the economic issues associated with the current PAYGO approach to heavy vehicle pricing. Our report emphasised the importance of a ...
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Potential for Increase in Navigation Services Charges at Port of Newcastle
Synergies Economic Consulting was engaged by Glencore to construct some indicative Maximum Allowable Revenue (MAR) scenarios for the Port of Newcastle’s channel assets. The purpose of the analysis was to provide an indication of the likely annual revenue that a regulator would allow under a standard building blocks methodology. As the value of the channel assets is a key driver of the revenue allowance, Glencore has commissioned a high level Depreciated Optimised Replacement Cost ...
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The Rate of Return to Apply to ARTC’s Hunter Valley Coal Network
Synergies provided an opinion on the appropriate Weighted Average Cost of Capital (WACC) to apply to its Hunter Valley Coal Network (the HVCN) for the purpose of its forthcoming access undertaking review
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Public Transport Investment – The Value of Action versus the Cost of Inaction
Synergies Economic Consulting, in partnership with GHD, was engaged by the Australasian Railway Association (ARA) to examine traffic congestion in Australia’s capital cities and the value of action versus the cost of inaction. It focussed on the core solution to alleviating congestion, which is investment in public transport investment, particularly heavy and light rail.
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Aurizon Network’s Commercial and Regulatory Risks
Synergies provided advice to QR National supporting that a new railway which would connect a mine in the Galilee Basin with the existing Central Queensland Coal Network would provide an integrated (above and below rail) haulage service to its customer/s. The question was raised as to what the implications would be for QRN if the project was instead undertaken under a functional service delivery model in which the various elements were delivered by the relevant ...
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Proposed declaration of Sucrogen’s Herbert River tramway service network
Synergies was engaged by Corrs to assist with the preparation of its submission to the NCC in relation to an access declaration application by the North Queensland Bio-Energy Corporation Ltd (NQBE) in regards to below rail services provided on Sucrogen’s Tramway Service Network in the Herbert River district. Following the release of the NCC’s draft recommendation not to declare the below rail services of the Tramway Service Network, we prepared a supplementary expert report in ...
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ACCC’s Draft Decision re ARTC’s Hunter Valley Coal Network
This report was prepared by Synergies Economic Consulting (Synergies) at the request of the Australian Rail and Track Corporation (ARTC). The report is in response to the ACCC‟s Draft Decision in relation to the Hunter Valley Coal Network access undertaking. We have been requested to respond to four Weighted Average Cost of Capital (WACC) parameters proposed by the ACCC.
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Service Quality Incentive Mechanism for QR Network
QR Network requested Synergies Economic Consulting review the principles underpinning the design of such a regime, and how it might be applied to QR Network, while having regard to its existing incentives and obligations. Our findings are outlined in the attached report.
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Adjusting for Expected Inflation: Submission to IPART
Australian Rail Track Corporation (ARTC) requested Synergies Economic Consulting (Synergies) to provide an opinion regarding the use of inflation-indexed swaps to estimate inflation. Historically, consistent with other regulators, lPART has applied the Fisher equation to observed yields for nominal Commonwealth Government bonds and Commonwealth Government indexed bonds.
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Review of Coal Supply Chains
Synergies reviewed the role of government in export coal supply chains in Australia which involved a report presenting a detailed description of the coal supply chains and the issues affecting the supply chain performance, and anther report which examined the existing role of government and the status of current initiatives in coal supply chains.
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Benefits of Grain Express
Synergies performed a detailed analysis of the grain supply chain in Western Australia for Cooperative Bulk Handlers (CBH). This analysis involved an assessment of the grain supply chain, mapping the current information and physical flows, identifying the relevant interfaces of the logistics chain and the impediments to the supply chain achieving greater efficiency. The advice culminated in the development of a solution to reform the supply chain in order to overcome these impediments.
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