Updated Pricing Order to enable earlier regulatory engagement for future capacity investment

 On 25 June 2026, the Department of Treasury and Finance gazetted updates to Port of Melbourne (PoM)’s Pricing Order, following extensive engagement led by the Department.

The changes strengthen the regulatory framework and establish a clearer pathway for assessing major infrastructure proposals. They enable earlier stakeholder engagement and upfront regulatory review, providing greater certainty ahead of any future investment decisions, including the proposed Port Capacity Enhancement Program (PCEP).

What has changed

  • Enables earlier engagement with stakeholders ahead of major investment decisions
  • Introduces upfront (“ex-ante”) regulatory assessment before significant capital is committed
  • For PCEP only, if the Essential Services Commission (ESC) finds that the investment is prudent and efficient, then PoM would be permitted to raise prices above the Tariffs Adjustment Limit (TAL) to fully recover the costs
  • Provides a structured pathway for considering large-scale port developments

What the changes do not do

  • Do not represent approval or endorsement of any specific development
  • Do not trigger any immediate tariff or price changes

Any potential future tariff changes would not occur before 1 July 2028 and would be subject to:

  • Assessment by the ESC
  • An investment decision by PoM
  • Further rounds of stakeholder engagement and regulatory oversight

Potential economic impact

Supported by this framework and subject to regulatory approval, PCEP could contribute:

  • Approximately $5.7 billion to the Victorian economy¹
  • Around 3,500 jobs per year² across sectors including transport, construction and agriculture

What happens next

  • Continued detailed planning and technical development
  • Further consultation on the Port Capacity Enhancement Program, building on engagement underway since 2019

A copy of the latest Pricing Order including June 2026 amendment is available here.

1 Port Capacity Enhancement Program Cost Benefit Analysis Draft Report, May 2024

2 Port Capacity Enhancement Program Economic Impact Analysis, April 2025