Patrick Terminals – Notice of Intention to change Landside & Ancillary Charges Effective from 1 January 2025
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received notice from Patrick of an intention to change Landside and Ancillary Charges for all main terminals, effective 1 January 2025. Official notices issued for each terminal and all reviewed charges are as follows: | | |
Following is the rationale for the changes as indicated by Patrick:
1 November 2024
Patrick Terminals – Notice of Intention to change Landside & Ancillary Charges: Effective from 1 January 2025
In early October 2024, Freight Victoria announced enhancements to the Victorian Voluntary Pricing Protocols for Container Terminal Operators. We have adopted the request that all Container Terminal Operators voluntarily change landside pricing once per year on 1 January, commencing from 1 January 2025 to assist with the widely held objective of helping shippers make informed business decisions. We also support the development of the template to provide additional supporting information about fee changes to Freight Victoria. These enhancements have now been communicated to State Transport authorities in New South Wales, Queensland and Western Australia and will form part of the National voluntary approach. Patrick is committed to all aspects of the National voluntary approach and as such has adopted these enhancements.
Patrick Terminals Landside Overview
Patrick is continuing with a significant investment program, with in excess of $350 million invested across the past five years and a further $80 million committed in the year ahead ($430 million in total). This will support continued efficient landside service levels for our landside customers and Australian shippers.
Key landside investment includes:
- Completion of Port Botany Rail Terminal Development (Patrick funding contribution), along with upgrades to the landside interface
- Fremantle Terminal Redevelopment, plus additional commitments for further capital investment in 2024 and 2025
- Finalisation of Melbourne Rail Terminal Development (Patrick funding contribution)
- Finalisation of Automated Truck Handling Project in Brisbane and Sydney
- Key equipment upgrades including 10 Hybrid Straddle Carriers commissioned in Melbourne in 2024 and 9 Battery Electric Internal Transfer Vehicles (ITVs) commissioned in Fremantle in 2024
- Pavement works and capacity upgrades across all terminals
- Gate system and Terminal Operating IT System upgrades
The Landside charge recovers a portion of the costs that relate to:
- capital investments and commitments made to infrastructure that supports our landside operations
- maintenance and operational costs associated with providing our landside operations and
- property and property related costs
Effective from 1 January 2025, the below Landside charges will be applied to both road and rail transport operators for all full container movements, both import and export, made at Patrick's Terminals. The 2025 Landside charges are required to support Patrick's significant investment program and Patrick's operational costs and property costs increasing at a rate above CPI.
2025 Annual Review
Patrick has completed a review of its Landside charge and other Ancillary Charges. The Landside charge partially recovers costs associated with providing Patrick's landside operations and is essential to enable Patrick to continue to provide our customers with superior and efficient landside service levels.
Across the period there has been continuing pressure on energy and property costs with a significant increase in rental costs in Brisbane. The Landside charge increase in Brisbane seeks to partially recover these additional property and energy costs. Further, Patrick has been advised of significant property cost increases as part of an upcoming market rent review in Fremantle.
As part of the 2025 annual review, we confirm that in determining the appropriate fee level for this year Patrick has had regard to the last fee review date occurring 4 March 2024. Patrick has also determined to continue to maintain a concessional rate for export containers. As a result of the annual review, the concession offered to East Coast exporters has increased to an average of more than 50%. The landside charges initially paid by transport operators continues to remain well below 50% of Patrick's overall revenue.
Import Containers
- Sydney $208.20 per full container
- Fisherman Islands $225.45 per full container
- East Swanson Dock $224.05 per full container
- Fremantle $91.55 per full container
Export Containers
- Sydney $138.25 per full container
- Fisherman Islands $137.20 per full container
- East Swanson Dock $151.80 per full container
- Fremantle $45.76 per full container
Patrick has updated the Vehicle Booking System (VBS) fee to $48.05 in Sydney, Brisbane and Melbourne and $56.95 in Fremantle, and adjusted its other Ancillary Charges. The VBS facilitates significant efficiencies and is highly valued by industry, delivering material cost savings to users. Patrick is committed to continuing to invest in VBS maintenance, resourcing and innovation. Patrick continues to work with One Stop and industry to focus on continuous improvement and opportunities to further enhance the VBS.
The intended Landside and Ancillary charges have been published on Patrick's website (www.patrick.com.au).
Patrick Terminals Landside Initiatives and Market Observations
Patrick Terminals is pleased to confirm its on-going investment program in decarbonisation to support sustainable handling of Australia's imports and exports. Patrick Terminals' decarbonisation strategy will pursue priority investments in fleet modernisation, a transition to renewable energy and influencing intermodal (rail and road capacity and efficiency).
Patrick Terminals acknowledges the important enhancement made by the ACCC in last year's Container Stevedoring Monitoring Report to incorporate a broader range of profitability indicators by adding 5, 10 and 15 year averages. These longer-term indicators are integral for a highly competitive industry characterised by significant long term infrastructure investment and fluctuating supply and demand factors. Patrick is committed to continuing to lead the market in investment and innovation, noting that it is integral that profitability and returns are sufficient to support this continued investment and innovation.
Patrick reiterates its commitment to all aspects of the National voluntary approach and reasonable further enhancements over time, where appropriate.
Patrick continues on a voluntary and industry-led basis, to publish landside performance metrics for each terminal and facilitate representative landside groups. These stakeholder groups have delivered increased engagement opportunities and identified opportunities to develop solutions which support landside performance and efficient terminal operations and to provide information about Patrick's landside investment program. Patrick is committed to continuing to work with landside customers to further develop transparency and cooperation initiatives on a voluntary basis.
Should you have feedback on the intended changes to the Landside and Ancillary Charges this can be provided to Landside25@patrick.com.au. Feedback will be received up to 28 November 2024 and a final notice published on Patrick's website on 2 December 2024.
Yours sincerely,
Michael Jovicic
Chief Executive Officer
Patrick Terminals
FTA / APSA will prepare a more detailed commentary in coming days. Members are encouraged to provide feedback as indicated in the above.
Tom Jensen - Head of International Freight & Logistics - FTA / APSA
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