Ports price review 2004
- Project Released: 15 Nov 2002
- Project Closes: 30 Nov 2004
- Contact: Nathan Petrus
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).
Current status is 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:
- price monitoring of Essential Maritime Services for a three year period; and
- 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
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.