DCN September Edition 2019

TRADE LAW
Improving trade
through coastal shipping
Can the “Blue Highway” of Australian coastal shipping provide a viable option
to remedy some of our supply chain issues, asks Andrew Hudson
EVEN WITH THE CURRENT POLITICAL
only be prepared to make the investment
shipping industry providing coastal
pressures around global trade and the
to provide those facilities subject to
shipping services to move goods around
supply chain, there seems to be little
conditions providing a guaranteed return
Australia which did not rely on overseas
prospect that there will be no reduction
on investment and flexibility in the way
vessels and their services into Australia.
in goods being moved through the
they provide their facilities and services.
However, over time the numbers of
international supply chain.
This can lead to an “imperfect”
Australian-flagged vessels available for
This places massive pressure on those
competition environment, which can
coastal shipping have dropped dramatically
in the supply chain to work for outcomes
include permissions for those providing the
so that the majority of the movement of
which will facilitate current and future
facilities and services to work together to
goods around Australia by sea is provided
demands in a way which is effective, secure
set rates and services in a way which will
by overseas vessels as part of the “end” of
and affordable. In terms of sea cargo
guarantee that those facilities and services
their shipping routes. This jeopardises the
this has led to the development of larger
are provided by collective action.
markets for exporters and importers.
and more sophisticated vessels as well as
In Australia that can be seen in
There have been a number of reasons
necessary supporting infrastructure at the
the “liner” exemption from normal
suggested for this outcome, which include
ports and then in road and rail to move
competition laws and the ongoing tolerance
the increased costs of vessels, the lack of
goods once they are through the ports and
by regulators and government of regular
access to cargo facilities (which are focused
stevedore facilities.
increases in the costs to use stevedore
on international trade), ongoing issues
At the ports this has led to a variety of
infrastructure at the ports. Government
with road and rail infrastructure and the
outcomes including additional dredging of
and industry needs the facilities and some
nature of the existing regulation of those
the entrances to ports and the construction
allowances are made.
providing coastal shipping.
of bigger and more advanced port facilities
The current Federal legislative
along with improved connections to
GOVERNMENT RESPONSE
environment is seen as too limiting. The
improved road and rail facilities.
Within this sensitive environment, all level
challenges of that regulation are seen in
of governments, their agencies and those
the failure of the Coalition government
IMPERFECT ENVIRONMENT
in the private supply chain are regularly
to secure the passage of reform legislation
All of those requirements have resulted
looking for the development of processes to
before the last election and the uncertain
in ownership of the supply chain
improve trade in a secure fashion but which
future of that legislation leaving in place
infrastructure moving away from the
still retain a spread of providers prepared
a regulatory regime which may not be fit
public sector into the hands of a small
to provide those facilities and services at a
for purpose for now and the future.
number of wealthy participants in
reasonable cost.
The states are continuing their work on
the private sector. Those holding that
One aspect lies with the provision
these issues. Freight Victoria is conducting
infrastructure are in a strong position in
the market. However those parties will
of “coastal shipping” in Australia. For
a number of years there was a separate
a coastal shipping review at the moment.
According to the Queensland trade
Electra
54 September 2019
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