ICCC releases market review

Business, Normal

The National, Monday 29th April 2013

 THE Independent Consumer and Competition Commission (ICCC) released a paper last Friday on its review of the charges for stevedoring and handling services.

Commissioner Dr Billy Manoka said the review aimed to assess the current level of competition in the market, the need for continued economic regulation of these services and the most appropriate form of any such regulation.

He said the paper discussed issues that ICCC considered relevant to its assessment of the competitiveness of the market and the need for regulation.

Manoka said the commission would also consider the interaction of stevedoring and handling services with related sectors such as shipping and ports as these sectors influence each other.

“These key industries facilitate trade both between PNG and between PNG and our international trading partners,” he said in a statement.

“Through this review and its regulatory and enforcement functions, ICCC will endeavor to secure insufficiency in the stevedoring sector to enhance the efficiency of the waterfront and shipping industries, which it considers have significant room for improvement.

“An efficient waterfront and shipping sector would mean that PNG gains efficient access to international markets for both imports and exports.” 

Manoka highlighted some of the key areas of the review:

l Introduction of stevedoring access agreements and terminal management contracts;

l Use of mobile harbour cranes and rubber tyred gantries;

l Vertical integration in the market (ownership levels of stevedores by ship operators);

l Market concentration (number and size distribution of stevedores in the market)

l Countervailing power and barriers to entry to the market;

l Innovation and growth in the market.