Carnival & PBPL defend

PLANS to develop a new cruise terminal in Brisbane would not go ahead without the level of commitment proposed by Carnival Australia, the Port of Brisbane (PBPL) has said.

In a joint submission to the ACCC, the port and cruise company have defended a proposed deal in which Carnival would pay an annual fee for 100 Foundation Berthing Days at the planned terminal.

PBPL said Carnival’s level of commitment was the minimum needed to reduce the commercial risk of the development and that without it, its board would not approve the investment.

The document reiterated that the 100 Foundation Berthing Days were proportionate to the company’s financial commitment.

It stated that the number of berthing days reflected its operational needs and were “not designed for the purpose of excluding potential entrants from the New Cruise Facility”.

The submission responded to the ACCC’s concern regarding Carnival being able to nominate up to four Foundation Berthing Days per week by stating it was necessary “to provide it certainty and flexibility for current and future operations”.

Another concern raised by the ACCC in its draft determination was the prospect of Carnival being granted a right of first refusal over a possible future second berth at the terminal.

Carnival agreed it would not seek a first right of refusal over the second berth and the applicants instead proposed a term whereby Carnival would share the benefit of any lower costs for the second berth.

The pair said the alternative would “prevent free riding”.

The ACCC’s final determination is due by 11 May ( CW 12 Apr).