DCN October Edition 2019

INDUSTRY OPINION
Will Victoria lead the way
on port access?
The Victorian government is leading the way for other state governments
with a formal review into port access charges, writes Andrew Crawford
IN OCTOBER 2018, IN THE LEAD UP
While the review announcement
to the Victorian state election, the ports
only occurred in August, the terms of
minister of the day, Luke Donnellan,
reference shows that a draft report is due
announced he would be bringing forward
in October 2019 with the final report with
an investigation into regulating access
recommendations due in November 2019.
prices at the Port of Melbourne. This was
For a major review of Australia’s largest
in response to increases announced by
international container terminal, it’s a very
DP World Australia, which were closely
short runway.
followed by Patrick and the Victoria
International Container Terminal.
CONCERNS RAISED
With the latest round of increases, the
One concern that has been expressed by
scourge of terminal access charges had
APSA members is that since it has taken
reached a tipping point for industry.
state governments so long to act on this
issue, the levying of infrastructure charges
THE ACCC REPORT
has become normalised, particularly
Earlier that month, the Australian
any administration and handling fees
Competition and Consumer Commission
applied by transport operators and other
also released the most detailed and
intermediaries on top of the stevedore
pointed assessment yet of the pricing
strategy. While the report didn’t outright
demand intervention, it clearly laid the
charges. In some instances, these
administration fees range from $4 to $40.
At the same time, the shipping line
Andrew Crawford, head of trade & policy,
Freight & Trade Aliance, co-secretariat, Australian
Peak Shippers Association
responsibility at the feet of the state
competition landscape has worsened,
owners, including major contestable traders
governments. It also provided state
making it harder for container terminal
in the Riverina who are shipping via the
governments with a blueprint of how
operators. Not only is there a third
Port of Melbourne. We considered the
they could regulate these charges. These
stevedore now operating in Sydney,
different regulatory options put forward by
options included increased oversight
Melbourne and Brisbane, but terminal
the ACCC and to what degree they could
of infrastructure charges by requiring
operators are now also facing a growing
help alleviate the impacts of these new fees
stevedores to seek approval from regulators
number of shipping lines coming together
on Australian importers and exporters.
before the implementation of price
in new Vessel Sharing Agreement, as
The group unanimously agreed that the
increases, setting limits on the rate at
well as the consolidation of competing
only option that would bring any relief to
which the charges could be increased, or
services. More often than not, individual
Victorian and NSW shippers using the Port
disallowing the pricing strategy altogether.
lines within these VSAs are collectively
of Melbourne is to disallow the pricing
While some states considered the ACCC
appointing stevedores.
strategy altogether. The group believed that
report behind the scenes, Victoria was the
charges should be levied on the shipping
first to announce a formal review. For that,
REVIEW OF THCS
lines, the natural commercial client of the
the state government was widely praised by
The review must also examine the
container terminal operators, and that any
industry. However, since October last year,
relationship between terminal handling
other pricing strategy would be unfair and
with a new minister and with the newly
charges and the increases we have seen in
would not encourage productivity.
formed Freight Victoria working through
landside access fees. Australian shippers
The review is potentially the biggest
a long list of priorities, the review that
continue to be hit twice. While the
opportunity for positive port reform
was ‘brought forward’ as part of a pre-
terminal access fees are increasing on the
since the introduction of the Port Botany
election campaign, was suddenly stalled.
landside, shippers are also continuing
Landside Improvement Strategy by the
Thankfully, it wasn’t parked forever.
to pay higher and higher THCs to their
NSW state government and all port users
In August, the Victorian government
announced the review had formally
commenced. It looks, however, to be a rapid
consultation process.
shipping lines.
In response to the commencement
of the review, in September 2019, APSA
facilitated a workshop of affected cargo
are hoping that it will deliver meaningful
outcomes. There is no doubt that other
state governments will be watching what
happens in Victoria with great interest.
David Sexton
18 October 2019
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