Transport Administration Act 1988 No 109
Historical version for 7 January 2011 to 30 January 2011 (accessed 21 December 2014 at 04:17) Current version
Part 8ADivision 2

Division 2 Arrangements between rail authorities and ARTC

88B   Lease or licence of land and rail infrastructure facilities

(1)  A rail authority may, with the approval of the Minister, lease to ARTC, or grant a licence to ARTC with respect to, the whole or any part of the following:
(a)  land (and all or any related rail infrastructure facilities) used for, or relating to, freight lines or proposed freight lines,
(b)  land providing access to any such land or rail infrastructure facilities,
(c)  such additional land (and all or any related rail infrastructure facilities) as ARTC may request, and that is required in connection with rail operations.
(2)  Rail infrastructure facilities may be leased or licensed to ARTC by a rail authority under this section even though the facilities are situated on land that is not otherwise subject to such a lease or licence.
(3)  A rail authority may, with the approval of the Minister, enter into a lease, licence, agreement or other arrangement with ARTC for the carrying out of development by or on behalf of ARTC for the purposes of constructing proposed freight lines and associated facilities or other rail infrastructure facilities.
(4)  A lease or licence entered into by a rail authority may make provision for or with respect to rights relating to intellectual property.
(5)  Subsections (3) and (4) do not limit the matters that may be included in a lease or licence under this section.
(6)  A rail authority may enter into an agreement or other arrangement with ARTC with respect to matters that are ancillary to or incidental to an ARTC lease or licence.
(7)  The total maximum term for which any land or rail infrastructure facilities may be leased or licensed under one or more leases or licences under this section is 60 years.
Editorial note. Date of commencement of first lease under this section, of interstate and Hunter Valley rail lines to ARTC: 5.9.2004.

88C   Other agreements or arrangements relating to freight lines

(1)  A rail authority may, with the approval of the Minister, enter into an agreement or other arrangement with ARTC for or with respect to the management by ARTC of freight lines not subject to an ARTC lease or licence (and all or any associated rail infrastructure facilities).
(2)  The total maximum term for which any one or more agreements or other arrangements may be entered into under this section in relation to any freight line or rail infrastructure facilities is 60 years.

88D   Provision of transition support services

A rail authority may, with the approval of the Minister, enter into an agreement or other arrangement with ARTC for the provision to ARTC by the rail authority of transition support services in connection with an ARTC arrangement.

88E   Sale of plant, machinery, equipment, stores and consumables

Despite any other provision of this Act, a rail authority that enters into an ARTC arrangement may sell to ARTC movable plant, machinery, equipment, stores and consumables, not being rail infrastructure facilities, whether or not it is used in connection with land or rail infrastructure facilities subject to an ARTC arrangement.

88F   Requirements for consent not applicable

A rail authority may enter into an ARTC arrangement, and any such arrangement has effect, despite any requirement for consent under any other lease, licence, agreement or other arrangement between a rail authority and any other person.

88G   Severance of rail infrastructure facilities and from leased or licensed land

(1)  Rail infrastructure facilities owned by RailCorp or the Country Rail Infrastructure Authority that are subject to an ARTC lease or licence or situated on land subject to an ARTC lease or licence, or rail infrastructure facilities installed or established by ARTC for the purposes of an ARTC lease or licence, are taken to be severed from the land on which they are situated and may be dealt with as personal property separate from the land.
(2)  Station facilities owned by RailCorp or the Country Rail Infrastructure Authority that are situated on land subject to an ARTC lease or licence are taken to be severed from the land on which they are situated and may be dealt with as personal property separate from the land.
(3)  The severance of a facility from land under this section:
(a)  does not affect the right of the facility to be situated on that land, and
(b)  does not affect any right to drain water or sewage from the facility across and through the land or to use any means of drainage of water or sewage from the facility across and through the land.
(4)  This section does not have effect in respect of rail infrastructure facilities or station facilities on land subject to an existing lease or licence by the rail authority as lessor when an ARTC lease or licence is entered into, while any such existing lease or licence, or any renewal of that lease or licence, remains in force.
(5)  To avoid doubt, a reference in subsection (4) to a lease or licence does not include a reference to a rail access agreement.

88H   Functions of ARTC relating to rail infrastructure facilities

(1)  ARTC may hold, manage, maintain and establish rail infrastructure facilities subject to an ARTC arrangement.
(2)  Any such arrangement may vest in ARTC rail infrastructure facilities installed or established by ARTC for the term of the arrangement or without limitation.
(3)  An ARTC lease or licence may provide that rail infrastructure facilities subject to the lease or licence and vested in or owned by a rail authority may be sold or disposed of by ARTC in accordance with the lease or licence.
(4)  This section is subject to the terms of any applicable ARTC arrangement and section 88M.
Note. Section 88M prohibits ARTC from selling or otherwise dealing with rail infrastructure facilities in a way that affects, or is likely to affect, the linear continuity of railway lines affected by, or subject to, an ARTC arrangement.

88I   Transfer of assets, rights or liabilities of rail authority

(1)  The Minister may, by order in writing, direct that assets, rights or liabilities of a rail authority, or any subsidiary of a rail authority, that are specified or referred to in the order, be transferred to ARTC.
(2)  The Minister may, by further order under this section, further direct the transfer to a rail authority, or a subsidiary of a rail authority, a State owned corporation, the Crown or any other person or body acting on behalf of the Crown of any assets, rights or liabilities previously transferred under this section.
(3)  An order under subsection (1) or (2) may be made only:
(a)  in relation to assets, rights or liabilities concerning, or relating to, an ARTC arrangement or a proposed ARTC arrangement, and
(b)  with the consent of ARTC or in accordance with an ARTC arrangement.
(4)  On termination of an ARTC arrangement, the Minister may, by order in writing, direct that rail infrastructure facilities (within the meaning of section 3) established by ARTC under the arrangement, and any related assets, rights or liabilities of ARTC, that are specified or referred to in the order, be transferred to a rail authority, a State owned corporation, the Crown or any other person or body acting on behalf of the Crown.
(5)  In the case of rail infrastructure facilities (including any related assets, rights or liabilities) used by ARTC partly for the purposes of an ARTC arrangement and partly for other business purposes, an order under subsection (4) must, if the rail infrastructure facilities were predominantly used for the purposes of the ARTC arrangement, be made subject to the conferral on ARTC of a continuing right to the use and benefit of those facilities for those other purposes.
(6)  An order under subsection (4) may transfer rail infrastructure facilities (including any related assets, rights or liabilities) that are predominantly used by ARTC for business purposes other than the purposes of an ARTC arrangement only to the extent necessary to confer on a rail authority an irrevocable right to the use and benefit of those facilities for the purposes of its rail operations.
(7)  An order under this section may be subject to specified terms and conditions.
(8)  Schedule 4 applies to the transfer of assets, rights and liabilities under this section.
(9)  Words and expressions used in this section have the same meanings as they have in Schedule 4.
Top of page