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Chapter 3Port interface cost indexThe port interface cost index provides a measure of shore–based shipping costs(charges) for containers moved through Australian mainland major city ports. Thesefive ports account for approximately 90 per cent of Australia’s container traffic. 1 Datafor January–June 2007 andJuly–December 2007 are presented in Tables 3.1 to 3.6. The port interface cost indexis based on an indicative approach; that is, the index is not an average of all costs, butis based on those costs typically charged by service providers in most instances (seeAppendix B for details).The Port Interface Cost Index (PICI) has as its starting point the estimation ofparameters for two typical sizes of container ships. These are vessels with a size of17 215 GT and 37 394 GT. These parameters enable the PICI charges to be estimatedon a per TEU basis. This index appears as Table 3.1.It is then possible to estimate ship based and cargo based charges per TEU for thesetypical vessels. These are presented in Tables 3.2 and 3.3. Ship based charges are thecharges vessel owners pay for a port visit by the vessel. Cargo based charges are thecharges levied on the actual cargo of containers.The port interface costs per TEU consist of the total costs which affect the importand export of a container. They are presented in Tables 3.4 and 3.5. The total costsare the sum of the ship–based charges, the cargo–based charges, the stevedoringcosts, customs brokers fees and transport charges. The stevedoring costs are takenfrom the ACCC annual report on the stevedoring industry. These costs enable thecalculation of the national port interface index measured in current and constant(2001) prices in dollars per TEU. This is the final result and provides an estimate ofhow much it takes to import or export one TEU.Port and related chargesTable 3.1 provides the parameters used to determine the port and related charges inTables 3.2 and 3.3. These parameters relate to a representative port call by containerships using the Lloyd’s ship classification unitized cellular container ship (UCC). Forthe 15 000 to 20 000 GT range 2 the representative vessel size used is 17 215 GT and forthe 35 000 to 40 000 GT range the representative vessel size 37 394 GT.Tables 3.2 and 3.3 provide the port and related charges at the five mainland capital cityports for the 15 000 to 20 000 GT range and the 35 000 to 40 000 GT range respectively,for January–June 2007 and July–December 2007. Port and related charges compriseship–based charges and cargo–based charges.1. Based on numbers for Australian ports published by Australian Association of Port and Maritime Authorities(AAPMA). (aapma.org.au/trade stats/? Id=5)2. To obtain a sufficient sample size for Adelaide and Fremantle containers exchanged (average), the ship size range wasincreased to 10 000 GT to 26 000 GT.27