Under the agreement, Carnival will pay a fixed annual amount to the port for 15 years in return for preferential berthing rights. These include 100 ‘Foundation Berthing Days’ a year, giving Carnival first choice of 100 days at the terminal each year, up to a maximum of four days a week.
As part of its authorisation, the ACCC said it has imposed two conditions to reduce the agreement’s anticompetitive effect and to promote competition and choice for cruise customers.
‘We recognise that the deal with Carnival helps to underwrite the projected A$158m investment for the Port of Brisbane to build the new terminal,’ ACCC Commissioner Roger Featherston said.
‘Brisbane has no dedicated mega cruise ship terminal and the construction of this terminal is expected to increase tourism and deliver a real benefit to the community and the Queensland economy.
Approval with conditions
‘While we understand the important benefits a dedicated cruise terminal would bring to Brisbane, we have concerns that parts of the agreement between the Port of Brisbane and Carnival would limit consumer choice and entrench Carnival as the dominant cruise operator in Brisbane for 15 years. That is why we have approved this agreement with two conditions.’
Featherston said under the first condition, Carnival will still get its choice of four days each week, but cannot book more than two of the three ‘weekend’ days (Friday, Saturday and Sunday) in any given week, which are the most popular and profitable days.
‘This means one of these premium weekend days will be available to competitors so other cruise operators can compete with Carnival,’ Featherston said.
‘If no other operator books the third weekend day, Carnival will be allowed to use it.’
Featherston said a second condition of authorisation is that if the terminal is expanded in the future to provide a second berth, Carnival cannot be given first right of refusal for an agreement which would give it first choice of days at that berth.
‘Our decision means that if a second berth is built, we should see improved competition between cruise lines,’ he said.
When asked for comment, a Carnival Australia spokesperson said ‘the determination only came out this morning and, naturally, we will take the necessary time to read (it).’
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