icon-ports Ports price monitoring report 2014

  • Project Released: 09 Dec 2014
  • Project Closes: 09 Dec 2014
  • Contact: Nathan Petrus

Overview

Status

Current status is Final

  • Final

Final

The Commission has released its 2014 Ports Price Monitoring Report, providing information on price movements for Essential Maritime Services (EMS) and pilotage services across six of Flinders Ports' commercial ports. 

Flinders Ports’ 2014/15 prices for Cargo Services and Harbour Services have increased by an average 2.9% (nominal) on the previous year, in line with the change in CPI. The Navigational Service charge increased above CPI, at 3.9%. Flinders Ports has explained that the above-CPI increase is primarily due to the introduction of a ‘Vessel Tracking System’ (VTS), which is expected to improve the safety of navigational operations at the ports.

Pilotage Service charges have increased by 7.5% from 1 July 2014, over twice the change in CPI, the main driver of which was increases in salaries and wages of pilots and boat crew. These costs were the subject of an annual Enterprise Bargaining Agreement (EBA) increase, which was higher than the annual change in CPI. In addition, Flinders Ports is replacing two pilot vessels and the increased depreciation charge associated with those purchases is also contributing to the change in pilotage charges.

The Commission has examined information presented by Flinders Ports to justify the above-CPI price increases for its Navigation Services and Pilotage Services and has had regard to movements in those prices that have taken place in other jurisdictions. Based on that information, the Commission considers those price increases to be justified. It will, however, closely monitor future price changes in light of potential productivity and efficiency improvements that are being pursued by Flinders Ports, to ensure that users benefit from those improvements in the long-term.

Flinders Ports has provided assurances to the Commission that ports users were consulted prior to the implementation of the 2014/15 price increases, and that no concerns relating to these prices were raised. In addition, no concerns have been raised with the Commission over price increases following their publication by Flinders Ports.