FTA / APSA call for intervention on Terminal Access Charges

As provided in earlier member updates, increased landside charges at DP World container terminals nationally will take effect on 1 January 2024 with Terminal Access Charges (TAC) increases deferred to 1 February 2024 – detail available HERE
 
The notice period provided by DP World aligns with the processes outlined in the Voluntary Pricing Protocols established by the Victorian government and adopted National Transport Commission – further detail on these mechanisms and upcoming changes to stevedore charges in the Port of Melbourne [DP World and Victorian International Container Terminal (VICT)] is available HERE
 
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have tested these protocols since inception, writing to stevedores in line with the VPP guidelines, and have highlighted the hopelessly flawed nature of the process to the Victorian Minister for Ports and Freight.
 
On each occasion when DP World, VICT and Patrick have announced TAC increases, prescriptive detail has been sought as to whether increases are a measure to offset a further reduction in quayside rates to the stevedores' commercial client shipping lines and / or necessitated by other specific operational factors.

In the absence of any commercial ability to influence the quantum of the TAC, being a 'take it or leave it' proposition as referenced by the Australian Competition and Consumer Commission (ACCC), and in line with the intent of the VPP, FTA / APSA requested further detailed explanation for the increases including disclosure, supporting information and data justifying the full cost structure of the total fees.
 
While constructive meetings were subsequently held with stevedore executives, follow up correspondence did not provide the specific data requested, instead provided a general commentary with a broad reference to activities and capital expenses.
 
FTA / APSA last week again wrote to the Victorian Minister for Ports and Freight, noting the most recent announcement from DP World will see their TAC increase in the Port of Melbourne by a staggering 52.52% (full exports) and 21.22% (full imports).

The correspondence also noted the Productivity Commission's report Lifting productivity at Australia's container ports: between water, wharf and warehouse, recommending measures to address abuse of market power should be strengthened by introducing a mandatory code to be administered by the ACCC with special provisions to keep stevedores highly accountable for any charges imposed on the landside logistics sector – correspondence available HERE.(FTA / APSA MEMBER LOGIN REQUIRED)
 
As the Minister has done in terms of supporting our call for shipping competition reform, we look forward to a favourable response also supporting our advocacy to the Federal Government on the need for national regulation of landside charges.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF