| Stevedore Infrastructure Charges Implementation Despite Opposition and Announced Government Inquiry DP World Australia (DPWA) has proceeded with its higher landside Stevedore Infrastructure Charges from 1 January 2019 despite significant opposition from the landside container logistics sector.
Also, DPWA's Vehicle Booking System (VBS) fees have been jacked up over 80% from $6.89 per container slot to $12.95 per slot. An unprecedented increase, with no corresponding significant improvement in the functionality of the 1-Stop VBS platform.
CTAA alerted our Alliance companies and container logistics contacts across Australia of DPWA's plans when they were announced in September last year.
See: https://mailchi.mp/35c1b77e0e9c/dp-world-australia-vbs-and-infrastructure-charges-increases
CTAA has previously welcomed the commitment of the Victorian Government to conduct a review into regulating pricing and charges, as well as access to and from the Port of Melbourne, following the announced increases in stevedore infrastructure charges.
Together with other organisations such as Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA), CTAA continues to discuss the need for similar reviews in other jurisdictions.
These actions align with statements made by the Australian Competition and Consumer Commission (ACCC) in its 2018 Container Stevedoring Monitoring Report, that the recent significant increases in infrastructure charges may require a more detailed examination by state governments, and, if warranted, a regulatory response.
Stevedore Infrastructure Charges restraint while Government reviews proceed:
CTAA urges the other Australian container stevedore companies to show restraint at this time and not impose similar infrastructure charge hikes as those imposed by DPWA while government investigations proceed.
The full picture on container terminal charges:
CTAA has been consistent and clear that the investigations into these unregulated charges should consider the broader picture of the port fees and infrastructure charges levied for landside stevedoring services, which are ultimately borne by Australia's importers and exporters.
It is recognised that there is a cost in providing adequate landside container stevedoring infrastructure. Indeed, the ACCC 2018 Container Stevedoring Monitoring Report confirms that stevedoring revenues have declined as foreign international container shipping lines have enjoyed much more competitive stevedoring rates as a result of stevedoring services competition.
Yet, stevedores need to continue to invest to provide adequate service levels, and to address their own rising costs in a market dictated by declining quayside revenues.
However, anecdotally, Australia's importers and exporters have not enjoyed corresponding reductions in Terminal Handling Charges (THCs), which have traditionally recovered the costs of Australian container stevedoring services levied directly by the foreign shipping lines. As a result, are importers & exporters ultimately paying twice for the same landside stevedoring services?
The broader spectrum of charges levied for what purpose is very worthy of government investigation and possible regulation. |