DP WORLD FORGE AHEAD WITH TERMINAL ACCESS CHARGES - GOVERNMENTS PASS THE BUCK AS TO WHO SHOULD CONTROL SPIRALING SUPPLY CHAIN COSTS

Today (1 February 2024) sees the introduction of exorbitant increases to Terminal Access Charges (TACs) administered by DP World at its container terminals nationally - refer HERE.

Disappointingly, these increases were announced without any prior industry consultation and our calls for financial relief (including a deferment of any increase until at least the finalisation of Protected Industrial Action at their terminals nationally) have been declined.

In parallel, last week (25 January 2024) the NSW Government released the long awaited Final Report (the Report) of the Independent Review on the Ports and Maritime Administration Act and the Port Botany Landside Improvement Strategy (PBLIS) - refer HERE

The 241 page report has significant detail requiring further extensive industry engagement - in the interim, Freight & Trade Alliance (FTA) and the Australian P:eak Shippers Association (APSA) have stated to Transport for NSW a strong objection to these two recommendations::

• PBLIS Recommendation 6: Remove the broad power for regulating stevedore charges: 
• PBLIS Recommendation 19: Remove regulated rail servicing arrangements : 

Instead of using existing provisions (Ports and Maritime Administration Act - Schedule 4 ; 6 Supply Chain Charges), the Report points to the Productivity Commission's review of Australia's Maritime Logistics System supporting its recommendation for a Mandatory Code to be administered against stevedore fees nationally with new powers to be provided to the Australian Competition and Consumer Commission (ACCC).

While FTA and APSA also see significant merit in a Mandatory Code as recommended by the Productivity Commission, any weakening of powers at a state level must not be contemplated until a federal solution is implemented, tested and proven to be a necessary safeguard for the Australian trade sector.

FTA / APSA HAVE ADDRESSED THESE CONCERNS IN TODAY'S MEDIA RELEASE - AVAILBLE HERE

FURTHER FTA / APSA MEDIA AVAILABLE HERE

Paul Zalai - Director FTA | Secretariat APSA | Director GSF