INCOMPETENT GOVERNMENT RESPONSE TO CONTAINER STEVEDORE CHARGES FUELS INFLATIONARY PRESSURES

Friday, April 1, 2022


Owners and shareholders of stevedore facilities rejoice with a licence to print money

Yes the headlines that you are reading are true and unfortunately is not some form of April fool's joke.

Inconceivably, the National Transport Commission (NTC) has given stevedores the green light to hold third party transport operators to ransom that have no influence over service or price.

Despite witnessing the failings of the Voluntary Port Performance Model (VPPM) [refer to our most recent correspondence and the Ministerial reply], the NTC has embraced the hopelessly flawed model adopted by the Victorian Government setting a new standard for adoption by state governments nationally – refer HERE.
 
Cashing in on these arrangements, Hutchison Ports this week announced the latest increase in Terminal Access Charge (TAC) [or what they refer as an "Infrastructure Surcharge"] reaching a new national high of $162.10 payable by transport operators for all containers received or delivered via their Brisbane terminal..
 
Despite receiving warnings from industry over many years, this outcome exposes the incompetency of both state and federal governments by refusing to take serious action, leaving a legacy of an ineffectual bureaucratic process that offers no meaningful protection against a charge currently costing Australian exporters and importers in excess of $500 million per annum.
 
On top of this we have severe capacity constraints, record high freight rates, container detention penalties, depot congestion and shipping line surcharges. Meanwhile our government representatives are left scratching their heads unable to answer why supply chain costs continue to spiral out of control fuelling inflationary pressures across our economy.
 
Further to the testimonials and extensive evidence raised in our formal submission to the review of the Australian Maritime Logistics System,  Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) will escalate a call on the Productivity Commission to lead a way for regulation to end the scourge of Terminal Access Charges.

FTA/APSA MEDIA RELEASE AVAILABLE HERE

Paul Zalai - Director FTA | Secretariat APSA | Director GSF