I would like to thank Peter Hodder as our Victorian Representative for his great support in the preparation of our submission and joining me today before the Select Committee Inquiry into the Proposed Lease of the Port of Melbourne.
Below is an executive summary with the full submission available HERE
Paul Zalai - FTA
EXECUTIVE SUMMARY
Private sector owners will aim to maximise returns for shareholders through consistent and structured long term management of the ports. FTA sees merit in privatisation for this reason in preference to having a revolving door of port ministers each with differing interests and strategies.
As a part of the Port of Melbourne privatisation process, FTA sees a need to minimise the potential for monopoly arrangements to facilitate intra-state port competition. Furthermore, proceeds from the lease should be used to further develop necessary infrastructure to support port related activities. This includes a network of inland ports in Melbourne to efficiently manage the growing international trade task.
FTA would also like to raise the following key issues for consideration by the Select Committee:
What oversight and regulation will the government establish to ensure efficient container management via the Port of Melbourne?
What safeguards on stevedore rent increases will be introduced and how will controls prevent cost recovery on third party transport providers?
What drivers of efficiency will exist with the introduction of monopoly compensation and the removal of any intra-state port competition?
What arrangements are being introduced to guarantee that inland port projects are established?
Will the Port Development Strategy or similar supply chain planning mechanism be used in the future operational and regulatory environment?
How will the leaseholder be prevented from pursuing stevedore or port related supply chain activities?
What additional assurances and justifications will be established to inform the relevant minister of price increases?