FTA/APSA in the Herald Sun: Government brings forward review of regulating pricing and access to Port of Melbourne

Friday, November 2, 2018

Government brings forward review of regulating pricing and access to Port of Melbourne

A GOVERNMENT review will investigate regulating access prices at the Port of Melbourne over concerns everyday Victorians could feel the brunt of skyrocketing container charges.

It comes amid a backlash against DP World Australia after the major stevedore announced it would increase access fees at the port to $85.30 per container.

The move is the latest in a series of price hikes for companies who rely on the port for business and the same charge was just $3.50 per container in April last year.

Businesses have also warned the surge in fees could have a flow-on effect on everyday items that come in through the port.

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A container ship is pushed to its berth by a tug at the Port of Melbourne.

In response, the Andrews Government will bring forward a review prices and access to the port to investigate whether regulation is needed.

Australian Peak Shippers Association secretary Travis Brooks-Garret said the commitment would be welcomed across the industry.

"Increases to port fees are one of the most serious threats to Victoria's manufacturing and

commodity export sectors," he said.

"You can be the most competitive and efficient manufacturer in the world, but if it becomes increasingly marginal to ship products through the Port of Melbourne due to rampant landside cost increases, you're going to be hamstrung."

"This is a national issue, and it's great that Victoria is the first state to stand up and instigate a review."

The Port of Melbourne has also put forward a new proposal to build rail lines up to its docks in an effort to take thousands of trucks off Melbourne streets through freight trains.

Funding has already been unlocked for a Port Rail Shuttle Network and the port is now pushing for new infrastructure to bring trains as close to stevedores as possible.

"The funding available through the PRSN is a good first step, but more is needed to deliver on the state's objectives and industry's expectations," Port of Melbourne chief executive Brendan Bourke said.

"Government has been receptive to our proposal and we are keen to work with them to get the required certainty to enable us to invest."