Regulating Ports: competition in South Australian port services for grain

Certain port services, called Essential Maritime Services, are subject to price regulation in South Australia. The need for this regulation is now under review, involving a series of assessments of market structures and market power in port services. This paper proposes a framework for assessing market power in port services, to determine whether there is a prima facie case for regulation. Elements of the framework are applied to the grain industry, which is one of the major users of port services in South Australia.