Ports price monitoring report 2014
- Project Released: 09 Dec 2014
- Project Closes: 09 Dec 2014
- Contact: Nathan Petrus
Current status is 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.