Infrstructure Surcharge cycle of price increases continues

Friday, November 1, 2019
HUTCHISON PORTS SYDNEY has announced that their Infrastructure Levy at their Port Botany terminal will increase to $63.11 (exclusive of GST) effective from 18 November 2019. 

The Infrastructure Levy will apply to all Laden (Full) containers received or delivered by road or rail at the terminal. 

Hutchison has looked to justify this significant increase (from $35.84 to $63.11) based on a review of investment in infrastructure at Port Botany ensuring they have sufficient capability to serve the needs of the industry.

COMMENTARY - obviously it is a lot easier for a stevedore to again turn up the Infrastructure Surcharge "money tap" rather than absorbing costs or passing these on to their commercial client (shipping line) - and why wouldn't you take advantage of an unregulated arrangement to collect money from third parties ... a very nice business model if you can get away with it !

National Summary of Infrastructure Surcharges

A summary of all Infrastructure Surcharges nationally is available HERE (NOTE - FTA / APSA MEMBER LOGIN REQUIRED)

Data collated courtesy of the Australian Peak Shippers Association (APSA), Freight & Trade Alliance (FTA) and the Container Transport Alliance Australia CTAA)

Update on advocacy activity

As outlined in recent member notices, the Victorian government commissioned a Port Pricing and Access Review led by Deloitte Access – a summary of the formal submission prepared by Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) is available HERE

In response to follow up member enquiries, below is a snapshot on what's happening in other FTA / APSA advocacy activity on this matter:
  • Melbourne - Sean Richards (APSA Chair and EM Visy Logistics) and I are scheduled to meet Roma Britnell MP (Shadow Minister for Ports and Freight and Member for Warrnambool) in Melbourne on 12 November 2019 to elaborate on matters raised in the FTA / APSA submission.  
     
  • Fremantle – correspondence has been sent to the Fremantle Port Corporation advocating constraint on the surge in Infrastructure Surcharges with the signing of stevedoring leases.   
     
  • Sydney – a contingent of FTA / APSA members met with The Hon. Andrew Constance (Minister for Transport and Roads and Member for Bega) on 12 August 2019 – this has resulted in a scheduled meeting on 5 November 2019 with Peter Achterstraat AM (NSW Productivity Commissioner) 
     
  • National - we have maintained our engagement with the Australian Competition and Consumer Commission (ACCC) and understand that they are getting to the pointy end of drafting up the 2018-19 stevedoring monitoring report. This year it looks likely to be released in early November 2019 and we trust that findings will continue to support for our advocacy activity.
Paul Zalai - Director and co-founder FTA / Secretariat APSA