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Infrastructure Tasmania

Port Services Regulatory Review – Terms of Reference

1. Purpose

To review the regulatory framework for delivery of port services in Tasmania and make recommendations to enhance future delivery of essential port services in the best interests of the State.

2. Background

Safe, efficient and cost-effective shipping movements at Tasmanian ports are fundamentally important to the economy of our island State.

Through successive reforms, the Tasmanian Government has consolidated its port assets into a single-entity, multi-port system.

The existing regulatory framework applies to Tasmanian waterways, rather than to port assets themselves, which include defined Port Pilotage Areas beyond landside port assets owned by TasPorts, as well as privately owned and operated Port Latta (Grange Resources), Lutana (Nyrstar) and at Long Reach on the Tamar River (Forico).

The arrangements supporting maritime safety and delivery of marine services in Tasmania are complex, and reflect aspects of the historic governance arrangements for Tasmanian ports.

Marine and Safety Tasmania (MAST) is a statutory authority operating under the Marine and Safety Authority Act 1987 (the MAST Act). The MAST Act is supported by several sets of regulations including the Marine and Safety (Pilotage and Navigation) Regulations 2017 (the Pilotage and Navigation Regulations) and the Marine and Safety (Maritime Incidents) Regulations 2017 (the Maritime Incidents Regulations).

Under the current Tasmanian maritime regulatory framework, MAST has engaged TasPorts to undertake specified marine safety functions. This is achieved under a tri-partite deed between MAST, TasPorts and the Environmental Protection Authority (EPA) (the MAST Deed), together with instruments of delegation and authorisation by MAST and the EPA to TasPorts and TasPorts employees.

The Crown is responsible for the implementation in Tasmania of the National Plan to Combat Pollution of the Sea by Oil and Other Noxious and Hazardous Substances (the National Plan), the Intergovernmental Agreement on the National Plan (the IGA) and the Marine-related Incidents (MARPOL Implementation) Act 2020 (the Pollution Act).

The EPA is Tasmania’s principal environmental regulator, established under and responsible for administering the Pollution Act, including the preparedness for, and responding to, oil and chemical spills in Tasmania. This includes developing and managing oil spill response capabilities in Tasmania and supporting response operations.

The Tasmanian Marine Oil Spill Contingency Plan (Tas Plan) is prepared in accordance with, and to support, the National Plan in Tasmanian waters.

The arrangements under the MAST Deed are integral to satisfying obligations to ensure safe navigation of waterways, as well as emergency planning and response.

Recent developments indicate that the current arrangements, which reflect historic ports and operational structures, do not provide adequate scope to allow the regulator and service providers to respond to changing market conditions and needs.

It is therefore appropriate to consider how the regulatory model may be improved to support future delivery of essential port services, including towage and pilotage services, as well as the maritime safety management responsibilities in Tasmanian waters.

3.Objectives

The objectives of this review are to:

  1. identify current strengths and weaknesses of the port services model in Tasmania and key emerging issues and challenges in markets for port services
  2. assess the efficacy of possible future port service models and associated policy settings
  3. recommend the policy and governance directions necessary to ensure a contemporary framework that operates in the State’s best interest and that supports safe, efficient, cost-effective and commercially sustainable shipping movements in Tasmanian waters
  4. recommend amendments to the regulatory framework to deliver directions described in (c), including ensuring appropriate allocation of responsibility for acquittal of marine safety and emergency response functions, and accountability for those functions
  5. provide an implementation framework regarding improvements to, or reform of, the framework for delivery of ports services in Tasmania.

4. Scope

The review will examine the delivery of port services, including marine pilotage and towage, marine safety functions and the delivery of oil and chemical spill pollution management and response capability under the National Plan and Tas Plan.

The Review will give particular consideration to the:

  1. Determination of waters to which the responsibilities for delivery of port services and marine safety functions apply, noting current geographic limits of the designated port areas
  2. Adequacy of the current regulatory model to enable responsible parties to maintain safe operation of vessels in Tasmanian waters
  3. Markets for port services in Tasmania, including towage and pilotage, and influence of the volume, frequency, nature and location of Tasmania’s current and forecast ship movements, and market structure, on competition
  4. Potential role of the private sector in delivery of port services, including regulatory functions and governance where such arrangements are appropriate
  5. Responsibility for acquittal of regulatory responsibilities, as well as mechanisms by which responsibility is conferred and standards of service determined
  6. Responsibility for acquittal of commitments under the National Plan and IGA, as well as mechanisms by which responsibility is conferred and levels of capability determined
  7. Responsibility for ensuring delivery of towage and pilotage services (including both commercial services and emergency response), and framework necessary to acquit this responsibility
  8. Application of cost recovery principles and pricing oversight for delivery of port services
  9. Appropriate allocation of operational responsibilities between TasPorts, EPA and MAST in delivery of key port services functions, the setting of regulatory standards and regulatory enforcement
  10. Relationship between Commonwealth and state law in the delivery of safe navigation of vessels and emergency response
  11. Other relevant matters with regard to port services that may be raised through consultation.

The Review will not, other than where it is relevant to the above, consider or make recommendations with regard to the:

  1. Ownership and management of land-side port infrastructure
  2. Pricing of land-side services
  3. Technical content of marine safety standards
  4. Operational requirements for delivery of port services, including for emergency response.

5. Consultation

In undertaking the review, recommendations are expected to be informed by consultation with key port stakeholders, including direct providers and users of port services (particularly shipping lines), port infrastructure owners/ operators and other interested parties.Where appropriate, broader consultation will be undertaken to ascertain potential impacts of alternative models for delivery of port services.

6. Review management

The review will be led by the Department of State Growth, who will coordinate and oversight the review process, including a program of consultation with key port stakeholders, with ongoing engagement with Department of Treasury and Finance, Natural Resources and Environment Tasmania, Department of Premier and Cabinet, Department of Police, Fire and Emergency Management, MAST, EPA and TasPorts.

7. Timelines

The review process will run for approximately 12 months. A report on the review process and findings is expected to be provided to the Government by December 2022, with an implementation plan for delivery, including legislative change, to be delivered from 2023.