Port Botany’s Landside: Market Pricing to Address Congestion

Endemic congestion at the road landside interface at Port Botany, Sydney results from coordination problems within the supply chain. These problems cannot be solved through the vertical integration of participants in the supply chain because of competition law considerations, and other non-price solutions are unworkable. Government intervention is warranted, but in a minimal form targeted at the facilitation of slot pricing. This limited intervention would allow market dynamics to achieve an efficient solution. Copyright (c) 2009 The Economic Society of Australia.