Open access (infrastructure)

In the hypothetical case of the steelworks having a port or a railway to a distant mine, outsiders might want access to save having to incur a possibly large cost of building their own facility.

Since radio communication was so new, it preceded laws, regulations and licenses, which might otherwise impose conditions to open infrastructure to other players.

[1] In 2004 Fortescue Metals Group launched a bid to have the Mount Newman railway owned by BHP Billiton declared for third party access.

When these mines started in the 1960s, state laws required the miners to make their infrastructure available to other players, but no application had been made.

Monopolies are often inevitable because of high capital costs, with governments often imposing conditions, in exchange for approval of the project and for the granting of useful powers such as land resumption.

BC Iron and Fortescue agreed to set up a joint venture to operate both the BCI mine and the railway connection to the port.

In 2011, GVK has offered to make its proposed railway from the Galilee Basin to Abbot Point as open access to other players.