icon-ports 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

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.