| | Who does this notice affect?
Exporters, importers, freight forwarders, customs brokers and transport operators | | | | FTA / APSA / CTAA - WA INFRASTRUCTURE SURCHARGE | | | | Background
As members will recall, Freight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and the Container Transport Alliance Australia (CTAA) [the Alliance] provided a submission to Fremantle Ports on 27 Sept 2019 warning of the escalating threat of Infrastructure Surcharge increases to Western Australian operations and seeking intervention via the Ports' stevedoring leasing renewal arrangements - refer HERE.
As outlined in a notice from DP World Australia on 4 November 2019, these concerns became reality with their Infrastructure Surcharge (now referred to as "Terminal Access Charge - TAC") scheduled to increase from $8.22 (excl GST) to $45 (excl GST) per container effective 1 January 2019 - refer HERE
We were delighted to see the strong and immediate response from the Fremantle Ports CEO, Chris Leatt-Hayter
"DP World's action is disappointing, given the substantial effort both parties have made to reach agreement on the new lease arrangements over the past months. It also confirms Fremantle Ports' concerns about the level of future infrastructure surcharges that may eventuate if no agreed approach is in place under the new lease .Fremantle Ports is currently considering its position with regard to longer-term lease arrangements at Fremantle. It will continue to strive for fair and reasonable commercial arrangements that are in the interests of all port stakeholders."
The full statement from the Fremantle Ports' CEO titled INFRASTRUCTURE SURCHARGES - DP WORLD FREMANTLE CONTAINER TERMINAL is available HERE .
Focus - impacts on exporters
To support our advocacy, we have since sought feedback from members outlining the impacts of Infrastructure Surcharges increases on the freight and trade sectors, particularly the impacts on Australian exporters, manufacturers and farmers - refer HERE.
Aligned to this approach, John Park (Head of Business Operations, FTA / APSA) and Neil Chambers (Director CTAA) have engaged with Fremantle Ports and the office of the Western Australian Ports Minister as well as meetings with Western Australian (WA) exporters - please refer to an extract of subsequent correspondence received from a prominent grain supplier:
"DP World advised that they would be increasing their TAC and Slot Fee Charges at all their port sites. Fremantle was the hardest hit with an increase of 447% on their previous TAC and a 42.5%increase in their slot fee charges. These fee increases equate to more than one dollar fifty per tonne on every container that we ship through DP World Fremantle from 1st January 2020. This fee increase has also been without consultation or sufficient pre-warning extending the losses to our existing business caused by the above mentioned LSS … These cost increases present both short and long term issues for our business and the ability of the Australian grain export industry to compete in a highly competitive market. Notably, these combined cost increases are more than the average margin on our existing business"
| | | | Response from the Minister
We are delighted to see the WA mainstream media now picking up on this matter and Government responding to our concerns.
We encourage members to listen to the radio coverage from Tuesday 19 November with the WA Ports Minister, Hon. Alannah MacTiernan
RECORDING AVIALBLE HERE | | | | National Summary of Infrastructure Surcharges
An updated summary of all Infrastructure Surcharges nationally is now available HERE
Data collated courtesy of the Australian Peak Shippers Association (APSA), Freight & Trade Alliance (FTA) and the Container Transport Alliance Australia CTAA)
| | | | WE NEED YOUR SUPPORT
FTA / APSA urge members to supply evidence of commercial impacts of stevedore Infrastructure Surcharges, particularly as it impacts our exporters, local manufacturers and farmers.
Please send details direct to me at pzalai@FTAlliance.com.au
Paul Zalai - Director and Co-Founder, FTA / Secretariat, APSA | | |
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