Adsteam Marine Ltd has submitted a new notification of proposed price increases for harbour towage services. The services relate to tug boats that assist ships to enter and exit various ports around Australia.
Adsteam is the sole provider of harbour towage services at major ports in Australia. As a result, Adsteam is a 'declared' company under the Prices Surveillance Act 1983, and is therefore required to notify the ACCC of proposed price increases.
In December 2001, Adsteam originally notified the ACCC of its proposal to increase charges for towage services at the ports of Sydney (Jackson and Botany), Adelaide, Melbourne and Brisbane. The proposed price increases were:
11.7 per cent in Brisbane
13.1 per cent in Port Botany
15.8 per cent in Adelaide
23.4 per cent in Melbourne
26.2 per cent in Port Jackson.
The new notification proposes identical price increases and is available on the ACCC’s website.
Adsteam argues that these price increases would achieve a margin on costs of 18% at all ports.
Interested parties have raised concerns with both the magnitude of the proposed price and the timeframe for considering the proposal. The ACCC has also sought clarification on operational and financial aspects of Adsteam’s proposal.
Under the original notification the ACCC would have made its decision by 31 January on Adsteam’s proposed price increases.
Because Adsteam has withdrawn its original notification and re-notified the ACCC, the timeframe for assessment by the ACCC is extended by a further 21 days. The ACCC has until 19 February 2002 to make a decision on the new notification.
The ACCC is contacting interested parties seeking their views on specific issues raised in the notification.
