DP World Australia (DPWA) has issued 60-day Notices of Intention to increase landside fees at each of its Terminals in Australia from 1 January 2024.
The Notices for each Terminal can be downloaded below:
All DPWA Notices are also available directly from the DP World Customer Portal at: https://customer.dpworld.com.au/caremore/login - scroll down to "Public Tarriff Schedule"
In addition, Notices have been issued stating that following the introduction of a calibrated weighing device (PONDUS) in Melbourne earlier this year, PONDUS devices will be implemented in DPWA's Sydney and Fremantle Terminals in the first half of 2024 (dates to be confirmed).
A "Weight Misdeclaration Fee" will be applied on laden import units having an absolute weight variance greater than (+/-) one metric tonne compared to declared weight (VGM recorded by the shipping line):
Landside Fee Increase Percentages:
In its East Coast port terminals where there is no Government oversight or intervention on stevedore landside fees, the following percentage increases have been announced by DPWA:
Terminal Access Charge (TAC): Full Exports - a whopping 52.52% increase in Melbourne; 38.80% increase in Sydney; 37.50% in Brisbane.
Terminal Access Charge (TAC): Full Imports - 26.18% increase in Brisbane; 25.49% in Sydney; 21.22% in Melbourne.
In contrast in Fremantle where the WA Government still owns Fremantle Ports, and landside fee increase percentages have been capped in terminal leases, the Terminal Access Charges (TACs) for full imports and full exports will only rise by 5%.
Vehicle Booking System (VBS) and ancillary charges are increasing by various amounts too, including:
VBS Slot Fees and full Stack Run Fees (per slot) increasing by 49.74% in Fremantle (as a charge outside of the capped fee agreement in the Fremantle terminal lease) and by 35.65% in Melbourne, Sydney & Brisbane.
Energy Charge (per export and import unit) rising by 13.96%
Vehicle Misdeclaration Fee increase by 23.33%
Various other charges increasing by percentages between 7.51% to 9.45% - all above CPI.
Justification for Increases:
The Notices of Intention include general statements from DPWA forecasting more than $600m in capital expenditure across 2023-2026 in its four terminals to invest in equipment and civil expansion works to cater for greater landside demand. Ther statement is accompanied by a table setting out key equipment capex items in each Terminal.
The Notices also mention other capex expenditure on maintenance and expansionary pavements work at all terminals, and on IT infrastructure & system upgrades.
Under the National Guidelines on stevedore landside fee increases (and the Victorian Voluntary Pricing Protocol), CTAA will be asking for further justification for such steep percentage increases in fees and charges.
For instance, what is the justification for a 49.74% increase in Fremantle and a 35.65% increase in Melbourne, Sydney and Brisbane on Vehicle Booking System (VBS) fees? How can those levels of increases be justified in relation to expenditure on upgrading IT infrastructure and systems?
Under the national voluntary guidelines, DPWA is obliged to issue final 30-day Notices, with responses to the industry feedback they receive.
All concerned stakeholders in the container logistics chain are urged to provide your direct feedback to DPWA via email at: VIC.landsidefeedback@dpworld.com.au by Friday, 24 November 2023.
Regards,
Neil Chambers, Director
Container Transport Alliance Australia (CTAA)