In response to last week's advocacy update, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) received correspondence from one New South Wales' most respected and highest volume exporters.     Fletcher International Exports (FIE), based in Dubbo, move in excess of 23,000 full containers of agricultural products annually through Port Botany – much of this product being low value commodities .

OPERATIONAL IMPACT Industry icon Roger Fletcher outlined the impact of the Infrastructure Surcharges as generating a significant reduction in margins which are passed down the supply chain to the farmer through lower paddock prices for their grain "For FIE's NSW business alone the infrastructure levy equates to a whopping $1,775,600.00 paid annually, ultimately creating the equivalent void back with regional farming communities"     The correspondence also highlights that there has been no commensurate performance improvement from stevedores since the introduction of the Infrastructure Surcharges and expressed serious concerns that there are no regulated controls to cap existing costs. The impacts are forcing FIE to consider a move away from containerised trade movements to bulk vessel alternatives.   In support of our ongoing advocacy activity, FIE have kindly allowed FTA / APSA to share their full correspondence – available HERE WE NEED YOUR SUPPORT   FTA / APSA have also shared this correspondence with the NSW Productivity Commissioner and continue to urge members to supply evidence of commercial impacts of stevedore Infrastructure Surcharges, particularly as it impacts our exporters, local manufacturers and farmers. Please send details direct to me at pzalai@FTAlliance.com.au Paul Zalai -  Director and Co-Founder, FTA / Secretariat, APSA

FTA / APSA meet with the NSW Productivity Commissioner / ACCC reports "Stevedore's revenue up due to higher infrastructure charges"

Sydney – David Scott (FTA Member Representative Sea Freight / Commercial Freight & Logistics) and I met yesterday (5 November 2019) with Peter Achterstraat AM (NSW Productivity Commissioner) and his senior advisors - we thank the Hon. Andrew Constance (Minister for Transport and Roads and Member for Bega) for setting up this engagement following our meeting with him on 12 August 2019. Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) will be supporting the NSW Productivity Commissioner on agreed action items including collation of commercail impacts generated by Infrastructure Surcharges. Melbourne - as outlined in last weeks' member notice, the Victorian government commissioned a Port Pricing and Access Review led by Deloitte Access – a summary of the formal submission prepared by Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) is available HERE. FTA/APSA and the Container Transport Alliance Australia (CTAA) have reached out to Deloitte, Freight Victoria and the Minister for Ports and Freight for an update on the release of recommendations and the Victorian government responses. Sean Richards (APSA Chair and EM Visy Logistics) and I are scheduled to meet Roma Britnell MP (Shadow Minister for Ports and Freight and Member for Warrnambool) in Melbourne 12 November 2019to elaborate on matters raised in the FTA / APSA submission .– for further detail contact pzalai@FTAlliance.com.au    Fremantle – FTA / APSA provided a submission to Fremantle Ports on 27 Sept 2019 warning of the escalating threat of Infrastructure Surcharge increases to Western Australian operations and seeking intervention via the Ports' stevedoring leasing renewal arrangements - refer HERE. As outlined in Monday's notice from DP World Australia, these concerns have clearly come to reality with their Infrastructure Surcharge (now referred to as "Terminal Access Charge") scheduled to increase from $8.22 (excl GST) to $45 (excl GST) per container effective 1 January 2019 - refer HERE We are delighted to see the strong and immediate response from the Fremantle Ports CEO, Chris Leatt-Hayter  "DP World's action is disappointing, given the substantial effort both parties have made to reach agreement on the new lease arrangements over the past months. It also confirms Fremantle Ports' concerns about the level of future infrastructure surcharges that may eventuate if no agreed approach is in place under the new lease.Fremantle Ports is currently considering its position with regard to longer-term lease arrangements at Fremantle. It will continue to strive for fair and reasonable commercial arrangements that are in the interests of all port stakeholders." The full statement from the Fremantle Ports' CEO titled INFRASTRUCTURE SURCHARGES - DP WORLD FREMANTLE CONTAINER TERMINAL is available HERE . John Park (Head of Business Operations, FTA / APSA) met with Chris last week and will keep members up to date with developments - for further detail contact jpark@FTAlliance.com.au      National - as outlined in last weeks' notices, we have maintained our engagement with the Australian Competition and Consumer Commission (ACCC) and delighted that they have met their commitment to support for our advocacy activity on this matter.  The Container stevedoring monitoring report 2018-19 released last week (6 November 2019) reported higher Infrastructure Surcharges imposed on trucks and rail operators at ports helped the container stevedoring industry increase average revenue per container lift for the first time in seven years, The full report is available HERE and the accompanying ACCC Media Release titled Stevedore's revenue up due to higher infrastructure charges is available HERE