State regulator releases interim report on Port of Melbourne

The state regulator has released an interim report on the Port on Melbourne’s approach to setting land rents and providing access to port land.

The Essential Services Commission’s report takes a detailed look at the Port of Melbourne’s contractual arrangements and the extent to which the land rents paid are passed through to Victorian consumers.

The interim finding is that there are weak market constraints on the Port of Melbourne’s power in setting and reviewing rents and that most tenants have limited ability to credibly switch to a different port.

Commission pricing director Marcus Crudden says the interim report provides a further opportunity to engage with stakeholders and receive feedback.

“We encourage interested parties and the wider community to have their say on Engage Victoria.

“Consultation is open for the next four weeks and we welcome input from all Victorians.”

Mr Crudden says the commission has taken into consideration submissions from stakeholders including port tenants who support the commission’s preliminary view that the port has power in the market.

It will now assess whether the interim finding that the port has power in the market has been at the detriment of Victorians and it will consider all feedback from stakeholders before delivering a final report to the Assistant Treasurer at the end of April.

This is the first of the commission’s market rent inquiries and covers the period 1 November 2016 to 31 October 2019.

A public forum or webinar is planned to be held on Tuesday 31 March in Docklands. Customers can find details and have their say on the draft decision at Engage Victoria. Submissions close 16 April 2020.