Last year Patrick indicated that they will introduce a $100 side-loader fee at Port Botany. At the time FTA lobbied against these arrangements highlighting the following key factors:
- Direct deliveries from wharf to importer would further decrease - the proposed fee would most likely force a greater use of "staging" solutions with transport operators using "conventional" trailers / vehicles for container receipt and completing secondary deliveries to importers with side loaders - this would add to the volume of containers being staged as many transport operators are already being forced to take deliveries at off-peak periods and complete next day deliveries.
- Significant impact on short term business viability on smaller transport operators - the proposed fee will have a lesser impact for transport operators with sufficient resources to stage containers and in many cases their operations will most likely being "business as usual" - the real impact will be on smaller transport operators with the quantum of the fee and the short time frame before implementation jeopardising their ongoing commercial viability.
To their credit, Patrick postponed implementation but gave a clear signal of their intention.
In parallel to this, DP World introduced a side-loader fee in Fremantle on 1 January 2013 and during the festive season, announced that they will follow up with a similar arrangement in Port Botany commencing 1 February 2013.
Last week FTA made contact with DP World management and received extensive correspondence highlighting the rationale for the fee – for further detail, please refer to the "Feature Article" posted on the FTA web site at www.FTAlliance.com.au
In response to concerns raised by FTA, Sydney Ports Corporation (SPC) subsequently released a notice to transport operators in relation to the side-loader fees being introduced by DP World and Patrick. In essence, the notification supported the FTA position that such levies should form part of the terminal handling charge paid by shipping lines and not be imparted to transport operators. Unfortunately, SPC can only rule if a charge is being introduced to offset financial penalties under the Port Botany Landside Improvement Strategy (PBLIS). In this instance, SPC considered that the fees are not to offset PBLIS penalties and therefore cannot block their introduction.
So there we have it. It looks as though side-loader fees are here to stay.
So what will be the outcome? Will transport operators be able to absorb this fee or will they pass it on? Will customs brokers, freight forwarders and importers accept this fee or will they move their business to other transport operators who stage movements?
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