Ports price monitoring report 2013
- Project Released: 12 Nov 2013
- Project Closes: 12 Nov 2013
- Contact: Nathan Petrus
Overview
The Commission is responsible for regulating prices and access to six
commercial ports in South Australia, operated by Flinders Ports Pty Ltd
(Flinders Ports), under the Maritime Services (Access) Act 2000. Under
the current ports price regulatory regime, Flinders Ports may adjust its prices
for services subject to price regulation as it sees fit, subject to the
requirement that it publish a price list and inform the Commission of changes to
that list. The Commission may then publish annual ports price monitoring reports
to provide information on prices, and commentary on factors underpinning price
movements.
Status
Current status is Final
Final
The Commission has finalised its 2013 Ports Price Monitoring Report in
accordance with the requirements of the Essential Services Commission Act
2002 (ESC Act) and the Maritime Services (Access) Act 2000 (MSA
Act).
This is the first annual ports price monitoring report published by the
Commission following its 2012 Ports Price Determination. The Commission’s price
monitoring regime involves an evaluation of Flinders Ports’ price increases as
compared to changes in the Consumer Price Index (CPI), with the expectation of
adequate justification for any rise in charges above CPI.
The Commission has observed that all of Flinders Ports’ 2013/14 ports charges
have increased at a rate above the Adelaide, March 2012 to March 2013, CPI
figure of 2.2%. In the case of Essential Maritime Services (EMS), both Cargo and
Harbour Service charges have increased by an average 2.9% due to the recovery of
increased wage costs as a result of Flinders Ports’ current Enterprise
Bargaining Agreement (EBA) with the Maritime Unions. The EBA also continued to
raise Pilotage Service charges above CPI, with the price rising by 3.8%
(nominal) due to this service being heavily dependent on wages. The Navigational
Services charge also experienced an above-CPI increase, with a nominal 3.2% rise
in 2013/14 prices due to the continued implementation of capital
expenditure.
The Commission has examined information presented by Flinders Ports to
justify the price increases in its regulated service charges and has found no
areas for concern. Having regard to ports price movements that have taken place
in other states, and considering the level of investment that Flinders Ports is
incurring in order to meet expected future demands and efficiency gains, the
Commission considers that the price increases are reasonably justified.
The Commission understands that port users were consulted prior to the
implementation of those increases in 2013-14 port charges and no specific
concerns were raised. Similarly, there have been no concerns raised with the
Commission over increases in port charges during the development of the 2013
Ports Price Monitoring Report.