Overview

We’re looking at whether the Port of Melbourne has misused any market power it may hold in setting and reviewing its land rents between 1 November 2016 and 31 October 2019. ‘Market power’ is a business’ ability to keep their prices above competitive levels for a sustained period of time.

How this affects you

The Port of Melbourne is Australia’s largest container, automotive and general cargo port. It has 35 commercial berths, jetties and piers in nine separate port areas or precincts.

If the Port of Melbourne has misused its market power, this could lead to higher prices, reduced access to services and reduced efficiency for Victorian consumers. For example:

  • tenants may be paying rents that are above market rents (i.e. higher prices)
  • prospective tenants may have been prevented from accessing Port or Melbourne land (i.e. reduced access)
  • efficiency of tenants’ operations may have been affected (i.e. reduced efficiency).

What we are looking at

We will consider if the Port of Melbourne has market power in the setting and reviewing land rents. We will also consider whether it has misused market power. That is, exercised market power in ways that harm the long term interests of Victorian consumers. If we think there has been a misuse of market power, we may make recommendations on possible economic regulation of the Port of Melbourne to the Assistant Treasurer.

As part of this inquiry, we will be looking at:

  • the processes the Port of Melbourne used to set and review land rents
  • whether the Port of Melbourne has followed these processes
  • if, and by how much, land rents paid by the tenants of the Port of Melbourne are ultimately passed on to Victorian consumers.

Have your say

We are looking for feedback or information on:

  • the questions in our paper
  • our approach to this inquiry
  • our understanding of the Port of Melbourne land rent market
  • other information that is relevant to our review.

You can provide feedback by sending us a written submission, or answer the questions we’ve supplied on this page. Your submissions will inform our draft report.

Submissions close on 25 October 2019