The purpose of this report is to provide an estimate of the return on capital for the Port of Melbourne (PoM) for its second regulatory year under the regulatory framework established by the Port Management Act (Vic) 1995 and Pricing Order. To determine an estimate of the return on capital that is consistent with the Pricing Order, the key requirement is that the Port Licence Holder (PoM) must use one or a combination of well-accepted approaches that distinguish the cost of equity and debt and so derive a weighted average cost of capital (WACC).
