icon-ports Ports price review 2004

  • Project Released: 15 Nov 2002
  • Project Closes: 30 Nov 2004
  • Contact: Nathan Petrus

Overview

The Commission has conducted a review of the price regulatory regime  applied to Essential Maritime Services (EMS) as defined under Section 4 of the Maritime Services (Access) Act 2000 (MSA Act).

Status

Current status is Final

  • Initiate
  • Submissions
  • Draft
  • Submissions
  • Draft
  • Submissions
  • Final

Final

The Commission has concluded its Ports Price Review. Having considered the submissions from interested parties, the Commission has concluded that a new form of ports price regulation is necessary.

The new form of price regulation for Essential Maritime Services (EMS) will involve 2 parts:

  1. price monitoring of Essential Maritime Services for a three year period; and
  2. negotiate/arbitrate arrangements in relation to grain berths – achieved by extending the existing Ports Access Regime to cover cargo services at these berths.

The Commission is of the view that price monitoring allows regulated operators and their customers the freedom to negotiate commercial agreements, with the threat of re-regulation acting as an ongoing deterrent against the misuse of market power by regulated operators. Furthermore, the extension of the negotiate/arbitrate model of the Ports Access Regime will also provide ongoing regulatory support to commercial negotiations in the areas of greatest market power concerns.

To give effect to the final findings, the Commission will make a price determination under Part 3 of the Essential Services Commission Act 2002 (ESC Act), replacing the First Pricing Determination (FPD). This would set out a price monitoring regime across the full suite of EMS.

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