2013 Ports price monitoring report released - Archived

12 Nov 2013

Under the Maritime Services (Access) Act 2000 (MSA Act), the Commission is the economic regulator for the six commercial ports operated by Flinders Ports. Under the current ports price regulatory regime in South Australia, Flinders Ports is allowed to adjust its prices for services subject to price regulation as it sees fit, subject to the requirement to 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.

The Commission has released its first annual ports price monitoring report 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.