Freight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and the Container Transport Alliance Australia (CTAA) are very much encouraged by the recent media release from the NSW Minister for Transport and Roads whereby the Hon Andrew Constance stated "stevedores must act responsibly and immediately and put a stop to any price hikes" – this reference being in terms of Infrastructure Surcharges in an environment whereby exporters are continuing to experience crippling drought conditions.   These concerns are exemplified in recent correspondences received from NSW and Victorian based members outlining operational impacts of the Infrastructure Surcharges – refer below:   APSA - Fletcher International Exports APSA - Kelly Grains APSA - Riordan Grain Services APSA - Wilmar Gavilon   In responding notice to carriers, DP World have snubbed this warning stating "DP World Australia is aware of comments made by the NSW Minister for Transport & Roads on Thursday 12 December. The circumstances requiring DPWA to announce the increase from 1 January 2020 have not changed. Consequently the announced increases will proceed as planned from 1 January 2020." * A full list of DP World Infrastructure Surcharge increases scheduled for 1 January 2020 is available HERE * A consolidated list of national stevedore Infrastructure Surcharges is available HERE

Time now for the Minister to use Regulation

FTA, APSA and CTAA yesterday followed up with the Minister's office and the NSW Productivity Commissioner to see how much conviction there is in the Minister's statements and urged use of powers within Ports and Maritime Administration Act to put a halt to the 1 January 2020 increases.

F36   Regulation of charges(cf PMA Regulation 2007 cl 18W) (1)  The Minister may, by direction in writing to a stevedore or stevedore service provider, regulate the charges that may be imposed by the stevedore or stevedore service provider for or in connection with the operation or provision of facilities or services of the port-related supply chain at Port Botany, including (without limitation): (a)  by regulating the charges that can be imposed for or in connection with truck servicing, rail servicing or the storage of containers, and (b)  by requiring the giving of notice to the Minister of the imposition of a new charge or an increase in the amount of an existing charge, and (c)  by requiring a stevedore or stevedore service provider to provide information to the Minister or TfNSW about charges imposed or proposed to be imposed or increased by the stevedore or stevedore service provider. (2)  A stevedore or stevedore service provider is not entitled to impose, collect or recover any charge in contravention of a direction under this clause. (3)  Any charge paid by a person that was imposed on the person in contravention of a direction under this clause may be recovered by the person as a debt due from the person to whom it was paid. (4)  A stevedore or stevedore service provider who imposes a charge in contravention of a direction under this clause is guilty of an offence. Maximum penalty: 500 penalty units. (5)  A stevedore or stevedore service provider who fails to give notice or provide information as required by a direction under this clause is guilty of an offence. Maximum penalty: 100 penalty units. (6)  A person must not in purported compliance with a requirement imposed by a direction under this clause provide information that the person knows is false or misleading in a material particular. Maximum penalty: 100 penalty units.

Opportunity to eradicate this charge

As outlined in our commentary published in the Australian Financial Review on Monday 16 December, the alliance of FTA, APSA and CTAA will continue to put forward a position for state-based regulation to eradicate this fee with stevedores to return to an arrangement of recovering costs from their commercial shipping line clients.

"Paul Zalai, director of Freight & Trade Alliance, said it would continue advocating for not just a cap in fees, but for fees to be wound back altogether.""   We will keep members posted on developments

Paul Zalai -  Director and Co-Founder, FTA / Secretariat, APSA