Over the week-end, Premier Andrews declared a 'State of Disaster' meaning tough restrictions on Victorians. Later today we will gain an understanding of implications on commerce and which businesses will be able to legally operate over the next six weeks - refer HERE.
In parallel to this, another significant event also took affect over the week-end where we had yet another increase in Infrastructure Surcharges (now more appropriately referred to as a Terminal Access Charge) with VICT reaching a new high of $131.03 (excl GST) applicable to all export and import containers - effective 1 August 2020.
A full list of Infrastructure Surcharges administered by all stevedores nationally is available HERE (FTA / APSA MEMBER LOGIN REQUIRED)
After DP World adjusted fees earlier in the year, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) received the following response to concerns from the Hon Melissa Horne MP, Minister for Ports and Freight.
DP World's decision runs counter to our commitment to pricing transparency, and points clearly to the need for the new standards we are now developing. I have asked DP World to explain the rationale for the price increase they have announced, and have raised my concerns with the timing of the announcement during the COVID-19 crisis and so soon after the last increase in these charges
FTA / APSA has requested an update on this matter with no response.
Clearly the stevedores are not concerned about what appears to be idle threats from the Victorian Government.
FTA / APSA ADVOCACY
FTA / APSA have campaigned with state governments and the Australian Competition and Consumer Commission (ACCC) outlining that if action is not taken immediately, we jeopardise the competitiveness of our country's quality products in a global market.
PARLIAMENTARY HEARING
30 JULY 2020 - David Scott (Commercial Freight & Logistics / Member Representative Sea – FTA / APSA) and I represented the alliance before the Joint Standing Committee on Foreign Affairs, Defence and Trade (the Committee) into the public hearing 'Impact of COVID-19 on Australia's defence, trade and international relations'.
Further to our formal submission and supplementary submission to the Committee, we addressed the following matters: - Including the entire international supply chain as "essential services" in the event of further (stage 4) Victorian COVID-19 restrictions
- Increased digitalisation in statutory reporting
- Need for fund allocation for the entire air cargo supply chain throughout 2021 (at minimum)
- Need for ACCC to focus on shipping line competition
- Focus on stevedore-imposed Infrastructure Surcharges / Terminal Access Charges
To view the entire FTA / APSA opening statement to the Committee, please refer HERE
ENGAGEMENT WITH THE DEPUTY PM
31 JULY 2020 - Sean Richards (Executive General Manager Visy Logistics / APSA Chair), Olga Harriton (Global Logistics Manager Manildra Group / APSA Vice Chair), Stephen Turner (Procurement Manager Group Procurement – Wesfarmers) had a teleconference with Andrew Johnson (Assistant Secretary Maritime and Shipping Branch | Surface Transport Policy Division, Department of Infrastructure, Transport, Regional Development and Communications) and the Hon Michael McCormack MP (Deputy Prime Minister and Minister for Infrastructure,Transport and Regional Development).
Further to our formal submission addressing concerns about stevedore-imposed Infrastructure Surcharges / Terminal Access Charges to the Deputy PM gave a commitment to formalise a response to: - acknowledge the concerns raised and support our advocacy, noting the implications for exporters and importers;
- clearly articulate that reform is a state government responsibility (negating arguments from the states pointing back to the Federal Govt to lead); and
- importantly, to provide a referral to the Australian Competition and Consumer Commission (ACCC) ensuring that stevedores involved vertical integration operations do so on a 'level playing field' with others in the supply chain and do not use Terminal Access Charges for commercial advantage / offset pricing.
NEXT STEP ... INDEPENDENT REVIEW OF THE VICTORIAN PORTS SYSTEM
FTA / APSA have incorporated member feedback in response to the 'Independent Review of the Victorian Ports System – Discussion Paper July 2020' focusing on the proposed Port Pricing and Access Review (PPAR) and Voluntary Port of Melbourne Performance Model (VPPM) as outlined in Section 5 titled 'Economic Regulation' (questions 6 and 7).
Freight Victoria has given an extension of time to respond until Friday 14 August 2020 - please refer feedback to me at pzalai@FTAlliance.com.au or 02 9975 1878 to incorporate your views into the FTA / APSA submission. |
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