Victoria's economic regulator has commenced an inquiry into the Port of Melbourne’s compliance with Victorian Government requirements for how it set prices for services over the past five years.
The scheduled inquiry is the Essential Services Commission’s first five-yearly examination of the port’s compliance with the Victorian Government’s pricing order covering 1 July 2016 to 30 June 2021.
The pricing order contains the rules the port must follow when setting prices each year. The commission has a legislative role to periodically ensure the port complies with those rules.
Executive director of pricing Marcus Crudden says the commission will review how the port has calculated prices and the extent prices have changed between years, as required under legislation.
“The pricing order allows the Port of Melbourne to recover efficient costs for providing services such as wharfage, channel use, berth or area hire and other services.
“Our inquiry will examine whether the port has complied with the pricing order over the past five years, and the extent of any non-compliance,” he said.
Under the port legislation, the commission must conduct a formal inquiry every five years and complete it within six months of the end of a review period. The inquiry will be completed by 31 December 2021, with a final report to the minister responsible for the commission, the Victorian Assistant Treasurer.
The Port of Melbourne services international and domestic shipping lines carrying containerised and general cargo to and from Melbourne through the Port Phillip Bay.
