Lloyds List Australia - Regulator in the firing line over DPWA’s Freo surcharge

Wednesday, September 20, 2017

Source: http://www.thedcn.com.au/regulator-in-the-firing-line-over-dpwas-freo-surcharge/?utm_source=LLA+Daily+Newswire&utm_campaign=ac06b3768a-EMAIL_CAMPAIGN_2017_08_15&utm_medium=email&utm_term=0_505d67c448-ac06b3768a-143548537


Photo: Shutterstock

Photo: Shutterstock


A NEW infrastructure surcharge imposed on users of the DPWA facility at Fremantle highlights the competition regulator's inadequacies, an industry body believes.

The Container Transport Alliance of Australia has released a statement, criticising not only the stevedore but also the ACCC and state and federal governments.

Director Neil Chambers said the announcement by DPWA of an Infrastructure Surcharge of $8.22 on all full containers October was "another example of stevedore monopolistic behaviour".

"Mid this year, the ACCC chairman, Rod Sims, offered a view publicly seemingly linking the east coast fee hikes with the negative aspects of port privatisation. What then is the ACCC chairman's view about it happening, again, in a publicly owned major capital city port?"

Mr Chambers noted comments from the Freight & Trade Alliance and the Australian Peak Shippers Association, describing a situation of "a commercial container logistics chain pricing model where the end-payer doesn't get to decide or have any influence over the outcome".

He said the latest Infrastructure Surcharge was almost double those imposed by Patrick Terminals in Fremantle in July ($4.76 per full container) and were being imposed without consultation with those expected to pay.

Rather, Mr Chambers argued, stevedores should either absorb increased operating costs, improve their productivity or negotiate their collection through their commercial clients, the shipping lines.

"As we said when Patrick Terminals made its Fremantle Infrastructure Surcharges public in June, it is very disturbing that the stevedores can simply offset their rising costs by unilaterally implementing levies on parties in the supply chain who have no strong contractual relationship with the stevedores, with no consultation and at short notice," he said.

He pledged to raise these concerns with the ACCC, small business commissioners, and with Federal and State politicians, including now the WA Government and Fremantle Ports.