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Depreciated Optimised Replacement Cost and Depreciation Schedule

The Economic Regulation Authority is considering Arc Infrastructure’s proposed depreciated optimised replacement cost (DORC) for its freight rail network in Western Australia, and its proposed depreciation schedule to be applied when updating the regulatory asset base.

The process of approving or determining the depreciated optimised replacement costsand the depreciation schedule for the 221 route sections comprising Arc Infrastructure’s network is governed by the Railways (Access) Code 2000.

The depreciated optimised replacement cost of a route section approved or determined by the ERA becomes the initial regulatory asset base of that route section, and is used to inform any future negotiations for access to the network.

The depreciation schedule sets out the profile of annual depreciation of the regulatory asset bases, relying on the ERA’s determination on Arc’s initial regulatory asset base and the remaining life of assets.

The ERA published Arc’s statement of depreciated optimised replacement cost and depreciation schedule on 16 June 2025, and invited submissions from stakeholders.

We received submissions from the CBH Group, Aurizon, Pacific National, Karara Mining Limited, the Association of Mining and Exploration Companies and the Chamber of Commerce and Industry Western Australia. These submissions are published below.

The draft decision published below sets out the ERA’s reasoning and seeks further information from interested parties to inform ERA’s final determinations.

ERA Decisions

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Public Submissions

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Arc's Submissions

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