THE Australian Competition and Consumer Commission (ACCC) has urged the Victorian Government to call for an undertaking around fair pricing and access at the Port of Melbourne (PoM).
Serious concerns have been raised by Victorian and Tasmanian producers, as well as the Tasmanian Government, about a proposed massive hike in port charges and privatisation of the facility.
ACCC chairman Rod Sims said the corporation had to be invited to set up an access undertaking by either the Victorian or Tasmanian government or stevedoring companies.
"We have long advocated that governments – and we have been urging governments – when they privatise assets to insist there be an access undertaking," Mr Sims said.
The undertaking is enforceable by the ACCC and ensures prices are not onerous or stevedoring companies are not excluded by the owner.
"The owner of the port, the Government of Victoria, can demand they get an access undertaking and that would be the end of it," Mr Sims said.
"It's easier for the owner of the port to invite us in – that's the way it should work – but it is possible for others to apply to the National Competition Council.
"The Tasmanian Government or the stevedores can apply to get the port declared under the ACCC's jurisdiction."
Mr Sims said pricing was important as a port was a monopoly asset so owners could set their own fees.
"If the port is owned by an entity which also has an interest in stevedoring, they may also be biased towards their own companies," he said.
DP World, which is facing a proposed 800 per cent increase in rental fees, is expected to meet with the Tasmanian Government in the next few weeks.
It is believed other stevedores, including Asciano, are also preparing a case for an access undertaking.
Tasmanian Infrastructure Minister Rene Hidding said the government had asked its Victorian counterparts to require the PoM to prepare an access undertaking for relevant infrastructure services that was acceptable to the ACCC.
"Alternatively, we have requested that the successful bidder be required to prepare and submit their own access undertaking that is acceptable to the ACCC," Mr Hidding said.
"These arrangements provide for the ACCC to arbitrate, should there not be agreement on terms of access to port facilities."
More than 90pc of Tasmania's non-bulk freight is shipped through the port.
Victorian Farmers Federation grains president Brett Hosking said the ACCC did have a role to play, given ports were essential services and an export gateway.
"We need to ensure they are managed as efficiently and effectively as possible," Mr Hosking said.
But he warned the ACCC must look at the whole supply chain, not just the port.
"Ports are not just isolated parts of the supply chain; they need to look at the supply chain from origin to destination.
"They tend to isolate and look at the port and port only and don't cast eyes beyond the port."
Mr Hosking advocated "light-touch regulation" so growers and producers could get equal access on even terms.
And United Dairyfarmers of Victoria president Adam Jenkins said he agreed there needed to be some oversight of the port. The ACCC was in an ideal position to fill such a role.
"That's one of the things we need to look at," Mr Jenkins said.
