SUMMARY
FTA subscribers will recall our intervention last year leading to Patrick Port Botany postponing the introduction of their side-loader fee – for further details please click HERE. Patrick have subsequently announced today that a $35.00 +GST per truck side-loader fee will be effective from 8 February 2013.
As outlined in the FTA notice posted on 1 January 2013, advice has been received by DP World management that a $54 + GST per trailer side-loader fee will be introduced in Port Botany effective from 1 February 2013 in line with its fee implementation in Fremantle which commenced on 1 January 2013 - FTA subscribers can view further detail by entering login details and clicking HERE.
NOTE - the side-loader fee at DP World does NOT apply for exports. The side-loader fee at Patrck applies for both imports and exports.
SPC POSITION
FTA has since raised concerns about the fee implementation and made an approach to Sydney Ports Corporation (SPC). In response, SPC released an official notice stating the following in relation to side-loader fees being introduced by DP World and Patrick :
Sydney Ports has recently reviewed applications by DP World and Patrick to introduce side loader levies. Both stevedores have identified additional costs related to safe loading as the foundation of the fee. SPC contends that such levies should form part of the terminal handling charge paid by shipping lines and not be imparted to carriers. However SPC can only rule, in its view, if a charge is being introduced to offset financial penalties under PBLIS. In this instance SPC considers the fee is not to offset PBLIS penalties and therefore cannot block the introduction of the fee. DP World has already published their fee structure, Patrick will advise in due course when the fee will be introduced and for what amount.
SPC will continue to audit Stevedores revenue and costs in regard to this levy.
DP WORLD POSITION
FTA has received the following response from DP World:
DP World has been advising the Container Logistics industry, particularly Transport Operators, that the increasing use of Sideloaders continues to affect the efficient delivery of import containers from the Container Terminal.
The advice to industry has been communicated through established Port stakeholder liaison committees which included the principal committee being the Port Botany Road Team (formerly Taskforce). Discussions with this Committee have been extensive and ongoing for well over 12 months in Sydney.
Accordingly, DP World's position on sideloaders should come as no surprise to any Transport Company. Whilst the Transport Representatives on these taskforces will claim that no agreement was ever reached in relation to the application of a fee, DP World has actively sought a resolution to the increasing use of sideloaders without consensus.
DP World has examined and considered the following alternatives as discussed during Taskforce Committee meetings. They were:
1. Refuse to service any sideloaders entering the Terminal to collect Import Containers;
2. Removing sideloaders from the regulatory PBLIS performance standards;
3. Restricting sideloader servicing periods from the Container Terminal; and finally,
4. Introducing a fee to recover sideloader servicing costs at the DP World's Sydney Container Terminal.
As stated, following the absence of consensus in a resolution to this issue, DP World has elected to adopt option four (4) which is the introduction of the fee in order to recover costs. DP World believes option 4 will have the least impact to industry when compared to all alternatives available and considered.
In relation to your two major concerns being the number of direct deliveries from the Container Terminal to importers decreasing and the impact on the viability of small transport operators. Specifically, the use of sideloaders to deliver import containers is in fact increasing and a key element the of the introduction of PBLIS was the smoothing of arrival of transport collections 24/7. This was a stated outcome of the initiative and introduction of PBLIS.
Servicing a vehicle with a Sideloader Trailer within the DP World Sydney RTG operated Terminal results in additional operational requirements and cost in comparison to a standard skel trailer.
DP World Sydney RTG's having mid spreader cabins require a Yard Marshall on the ground to assist with guiding a container into position onto a sideloader trailer in order to avoid contact, which may result in damage, with the hydraulic arm of the sideloader.
The percentage of sideloaders attending the terminal directly has increased over the past few years. The terminal offers receival and delivery of containers 24/7 and cannot predict when side loaders will present for service and so a Yard Marshall is needed to be allocated on all R&D shifts.
The fee is only applicable to operators presenting sideloader trailers for import containers, an option remains to present standard trailers at no surcharge.
The fee is being implemented in accordance with the protocols associated with the Port Botany Landside Improvement Strategy (PBLIS), Mandatory Standards and the proposed introduction of the fee has been introduced in accordance PLIS mandatory standards which is a detailed and lengthy process as you are well aware.
PATRICK POSITION
FTA has received the following response from Patrick:
Thank you for participating in discussions regarding the proposed introduction of the side loader levy over the past few months. We have now completed our consultation with the Industry and Sydney Ports.
I can confirm that the levy will be set at $35.00 +GST per truck. The levy will be effective from 8th February 2013 - 30 days from today. I have attached a letter that we will shortly be sending out to the industry.
The price of the levy is in line with what we discussed with a few of you on 14th December at between $30 and $40 . The calculations that were discussed at that meeting indicated that the levy could be set at $30. However those calculations were based on peak volume. We expect a natural drop off post peak season which requires the levy to be set at $35.
FTA will further engage with DP World, Patrick and key industry stakeholders on this and related national operational issues and will keep subscribers at the forefront of developments.
*** Have your say on this topic by commenting on my BLOG ***
Paul Zalai - FTA