Differences rise over port review - Victoria In Focus - Brief Article

Business Asia, May, 2002

The future governance of Victoria's ports is once again up for discussion with a Government-commissioned review of port reforms, but various stakeholders are not making the task easy.

Melbourne Port Corporation (MPC) have put forward a detailed submission describing its vision for the future of the Port of Melbourne, which involves creating one government-owned body to be responsible for the port, merging the roles of the MPC and the Victorian Channels Authority (VCA).

The Strategic Port Manager (SPM) would take responsibility for both land and channel facilities, coordinate port activities, manage environmental and safety issues, and provide a single face for customers.

Clear lines of responsibility and accountability would be drawn, something that has been said to be lacking in the current situation of separate land and channel management.

Different views

Not all are of the same opinion [hat this is the best way forward.

The VCA states clearly in its submission that it believes it should be retained as a separate organisation.

Several alternative models were suggested by the VCA, including its absorption by port corporations, or the Marine Board Victoria (MBV), or splitting current functions, with regulatory functions going to the MBV and operational/commercial functions being assigned to port corporations.

The VCA believes the third option is clearly favoured in discussion papers produced by the review, although the organisation itself holds the view that the current structure is working fine.

It goes on to say any benefits of an integrated approach would be "substantially outweighed" by the loss of economies of scale, whole of State coordination and balance between commercial and community interests.

"There is no alternative model to the current structure that avoids issues of demarcation and definition of role," the VCA states.

Changes

The Melbourne Port Corporation and the Victorian Channels Authority are the result of significant changes made to the legislative and institutional structure of Victoria's port sector during the mid-1990s, which saw the end of the Port Authorities via the Port Services Act 1995.

The new corporatised organisations also included the Melbourne Port Services and Hastings Port (Holding) Corporation, which have since entered the private sector through sale and lease.