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Victoria act
**What this law does (mechanically)
Establishes how ports in Victoria are created, managed and regulated (see s.1, s.5–6). It distinguishes "commercial trading ports" (major ports) and "local ports" and sets out who runs them (port managers, Ports Victoria, the port of Melbourne operator) (s.1(ab), s.3(1) definitions, s.44A).
Gives Ministers, the Governor in Council and port bodies powers to declare port land and waters, to name and reclassify ports, and to make Orders about ports (s.5–6).
Sets up economic regulation for a defined set of "prescribed services" (mainly channels, berths, short‑term storage and access to port infrastructure) through: (a) Pricing Orders made by the Governor in Council on recommendation of the ESC Minister (s.49A–49H); (b) monitoring and enforcement by the Essential Services Commission (ESC) and the ESC Minister (Divisions 2A–2C); and (c) a fallback general determination power for the ESC (s.54).
Imposes a port licence regime for providers of prescribed services (licences required, conditions, transfers, revocation) and allows the Minister to exempt public entities (ss 63A–63L).
Creates a dedicated port licence fee payable by the port licence holder (Part 2B: ss 44H–44N). The Treasurer may accept an upfront licence fee (s.44HA) and annual fees are set by a CPI formula (s.44J).
Requires providers of prescribed services to keep separate financial and business records and gives the ESC strong information, inspection and enforcement powers (ss 56–57).
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Direct links to the current provisions in Port Management Act 1995.
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View on official registerSourced from Victorian Legislation (legislation.vic.gov.au), CC BY 4.0.
Imposes competitive‑neutrality obligations on "State sponsored ports" (defined in s.49T) so they must not price certain container‑related services below a competitively neutral price (s.49V–49ZD) and gives the ESC power to investigate and fix minimum prices (s.49Y–49ZB).
Introduces licensing and standards for towage services (Part 4A, ss 73A–73ZB) and for pilotage services in pilot‑required waters (Part 4B, ss 73ZC–73ZQ): Ports Victoria issues determinations and licences, sets minimum vessel/capability standards, and runs review and disciplinary processes.
Sets who may charge wharfage and channel fees, who is liable to pay them (owners, cargo owners, agents) and enforcement mechanics (Part 5: ss 74–82, 78–81).
Gives ports powers to restrict public access to specified port areas (Part 5A: ss 83–88H), to manage hazardous or polluting activities (Part 5B: ss 88I–88W) and to deal with unattended/abandoned things (ss 88AP–88W).
For the Port of Melbourne, creates a regime allowing the port operator to give and enforce "port operator directions" on leased port land, to require information, appoint authorised officers and recover costs (Part 5C: ss 88X–88ZO).
Requires port safety and environment management plans, audits and reporting and gives the Minister power to issue guidelines and directions (Part 6A: ss 91A–91I).
Requires 5‑year Port Development Strategies and a Rail Access Strategy for the port of Melbourne, with consultation and possible Ministerial directions (Parts 6B, 6C: ss 91J–91V).
Contains extensive transitional and transfer provisions (Parts 8–18) for moving property, staff and instruments between legacy port authorities, new corporations, Ports Victoria and the State (eg ss 100–114, Parts 12–16).
Who it affects
Port operators and port managers (Ports Victoria, port of Melbourne operator, Port of Hastings Development Authority, other declared port authorities) — they receive powers and obligations (multiple Parts). See s.3 definitions; Parts 2, 4A, 4B, 5C.
Providers of port services (towage, pilotage, channel provision, berth and short‑term storage providers) — licensing, standards, price regulation and reporting obligations (Part 3 Divs 2–3, Part 4A, Part 4B).
Cargo owners, vessel owners and shipping agents — liable for wharfage and channel fees and subject to information directions and charges (Part 5; s.78; s.88ZI).
Tenants, licensees and users of port land and infrastructure — subject to port operator directions, fees, management plans, and potential restricted access areas (Parts 5C, 5A, 6A).
State and local government entities — Ministers, Treasurer, Governor in Council, ESC and Ports Victoria are given decisionmaking, approval and enforcement roles throughout the Act (eg ss 5, 49A, 44HA, 56, 63E, 91H).
Why it matters (claimed purposes and practical trade‑offs)
The Act claims to balance safety, environmental management and economic regulation: it provides infrastructure governance and pricing rules (see s.1 and the objectives in s.48). The intended mechanism is to protect users and consumers by supervising prices and service quality while letting port managers operate ports commercially.
Costs and compliance burdens: the law imposes ongoing reporting, record‑keeping (s.56), audits (s.91E–91FA), licensing fees and charges (Parts 2B, 5), and potential large penalties for non‑compliance (see ss 56, 63A, 73J, 88O). Private providers and cargo owners therefore face direct costs (fees, administrative effort) and indirect costs (limits on pricing flexibility).
Decision concentration and administrative discretion: many important powers rest with Ministers, the Governor in Council, Ports Victoria and the ESC (for example, making Pricing Orders s.49A; declaring port land s.5; approving wharfage/channel fees s.74AB). That structure creates discretion in how, and how quickly, rules are made and changed. Examples: (a) protected provisions in a Pricing Order cannot be altered except with the provider's agreement (s.49H); (b) the Treasurer may demand an upfront licence fee (s.44HA).
Incentives and market effects: the competitive neutrality rules (s.49V–49ZB) aim to stop subsidised state‑backed ports from undercutting competitors. That reduces incentives for below‑cost pricing by state‑sponsored ports but requires complex cost‑allocation methodologies (accrual building block, s.49S). Pricing Orders and protected provisions can lock in initial asset valuations and depreciation treatments which materially affect returns and incentives for investment (s.49A(3)(d),(e),(l)).
Concentrated benefits, diffuse costs, and capture risks: protected provisions (s.49H) and the ability for the Treasurer/Minister or Governor in Council to set fees/orders (s.49A, s.5, s.44HA) can produce large, concentrated transfers (eg negotiated asset treatments, upfront payments to Treasury) while the compliance costs are spread across many users. Where key terms are set by executive instruments, there is a risk that bespoke arrangements favour particular leaseholders or operators unless transparency and ESC oversight are strong (see monitoring Div.2A ss 49I–49N).
Enforcement and litigation: the ESC and courts have enforcement routes (s.49N, s.49P, s.49ZB). That creates litigation and compliance costs but also delivers enforceability of price and competitive‑neutrality rules.
Implementation complexity and cross‑agency coordination: the Act cross‑references many other laws (notably the Essential Services Commission Act 2001, Marine Safety Act 2010, Delivering Victorian Infrastructure (Port of Melbourne Lease Transaction) Act 2016 and Environment Protection Act 2017). That multiplies governance and coordination tasks (see ss 45, 3(1) definitions and numerous cross‑references throughout the Act).
Bottom line — who pays, who decides, and what changes behaviour
Who pays: port licence holder(s) (Part 2B), cargo owners and vessel owners (Part 5), users subject to port manager charges (s.44D), and entities that must comply with management plans and directions who may face enforcement costs.
Who decides: Ministers and the Governor in Council (major declaratory and fee powers), the Treasurer (upfront fee, s.44HA), Ports Victoria and port managers (operational powers, service determinations, licences), the ESC and ESC Minister (price monitoring, inquiries and recommendation powers), and the courts (enforcement and remedies).
Behavioural effects: tighter licensing and monitoring constrains who can provide core services; published price and record‑keeping requirements increase transparency but add compliance costs; competitive‑neutrality rules change pricing incentives for state‑backed ports; port operator directions and restricted access powers change how users interact with leased port land.
Key provisions to consult for detail: s.1 (purpose), s.3 (definitions), Part 2B (ss 44H–44N) port licence fee, Part 3 (ss 45–56 and especially s.49 and ss 49A–49H Pricing Order regime), Part 4A (towage licensing ss 73A–73ZB), Part 4B (pilotage licensing ss 73ZC–73ZQ), Part 5 (fees ss 74–82), Part 5A (restricted access ss 83–88H), Part 5C (port operator directions ss 88X–88ZO), and Part 6A (management plans ss 91C–91H).