COMMENTARY
While the IPART decision is seen as 'unshackling' the Port of Newcastle, it is important to note that the determination does not affect the Port Commitment Deeds with NSW Ports. This means that NSW Ports will potentially benefit with a financial windfall as any handling of import or export containers at the Port of Newcastle above the prescribed cap will attract a per TEU fee that the state must make to NSW Ports.In a report commissioned by NSW Treasury, preliminary estimates by Deloitte Access Economics suggest that liability to the state could range between $600 million and $4.3 billion in today's dollars out to the end of the contract in 2063. Freight & Trade Alliance (FTA), Australian Peak Shippers Association (APSA) and Container Transport Alliance Australia (CTAA) representatives met with Transport for NSW executives on 28 March 2024 referencing the potential of competing container ports and the need to address uncertainty in terms of planning for much needed private and public infrastructure investment.
Reference was made to an independent advisory panel recently appointed by the NSW Transport Minister Jo Haylen to work with her department and provide independent and expert advice on the new freight strategy. Transport for NSW gave a commitment to FTA, APSA and CTAA for a facilitated introduction to the panel.
FTA and APSA will continue to keep members up to date on these important developments.
Paul Zalai - Director FTA | Secretariat APSA | Director GSF |