Marsden Jacob was engaged by the Australian Competition and Consumer Commission (ACCC) to independently review the Australian Rail Track Corporation’s (ARTC) proposed depreciated optimised replacement cost (DORC) valuation of the Gap to Turrawan Segment of the Hunter Valley rail network.
The review involved an extensive review of the assumptions and methodologies used by the ARTC to estimate undertake the valuation. Specifically, the review examined the reasonableness of the DORC calculations of the key asset components (rail, sleepers, ballast, signalling, earthworks and bridges) – including optimisation, replacement costs and, and asset depreciation. Additionally, the review examined a range of methodology issues which related to what assets are included in the valuation.
The Marsden Jacob report was published by the ACCC in December 2013.
The ACCC’s position paper (12 December 2013) draws upon the Marsden Jacob report and sets out the ACCC’s preliminary views on ARTC’s application to extend the coverage of the Hunter Valley Access Undertaking to include Segments from Gap to Turrawan.
For more information, please contact our Matthew Clark in our Melbourne office on (03) 9882 1600.