| VICT Landside Fee Increases from 1 July 2021 -
CTAA Urges Withdrawal of "Premium Slot Fee"
Container Transport Alliance Australia (CTAA) has called on Victoria International Container Terminal (VICT) to "think again" about the implementation of a Premium Slot Fee from 1 July 2021 aimed to "discourage last minute vehicle booking system (VBS) slot requests."
Background:
On Friday, 1 May 2021, Victoria International Container Terminal (VICT) at Webb Dock, Melbourne announced its intention to increase its landside Infrastructure Charge to $141.80 (+GST) for full import or export containers from 1 July 2021 (up 8.22% from the existing Infrastructure Charge of $131.03 per laden container).
An increase of 8.22% is 150% of the current rate of inflation in Australia, and industry is perplexed as to how costs overall could have increased to this extent at VICT in the current environment.
From 1 July 2021, VICT also intends to:
- Reinstate a Stack Run-In Slot (Empty) Fee, payable by the transport operator ($12.50 + GST per empty container); and
- Implement a Premium Slot Fee of $109.50 (+GST) payable by the transport operator for "last minute slot requests".
VICT's Notices to Industry on these proposed fee hikes can be downloaded at: https://www.vict.com.au/customer-and-user-information/terminal-tariff-and-vbs-charges/
Premium Slot Fee:
CTAA alliance companies object strenuously to the implementation of a Premium Slot Fee.
The Premium Slot Fee is proposed to be $109.50 (+GST) per slot, which is 600% greater than the normal Slot Fee of $18.25 (+GST) per slot.
CTAA believes that instead of seeking to "punish" transport operators and their import and export customers through the imposition of a draconian fee, VICT should engage with the landside sector to comprehensively address the issues that may be contributing to last-minute vehicle booking (VBS) slot requests.
In a direct response to CTAA's concerns, VICT has indicated that the "Premium Slot Fee" is a fee that they (as a terminal) don't want to charge and is being put into place to avoid "certain transport companies depending on these late slots to collect/deliver their containers impacting all other customers who has taken the correct procedures to book in advance."
However, CTAA would contend that some of the reasons for late VBS slot requests have as much to do with systemic issues in the way in which VICT manages its Automatic Stacking Crane (ASC) operations and its slot drop arrangements for both import deliveries and export receivals, as it does with landside supply chain timing challenges.
CTAA has set out the views of its alliance companies on these VICT systems' issues in more detail in a CTAA Media Release - download: HERE
Victorian Government Voluntary Pricing Protocol (VPP):
Freight Victoria (within the Victorian Department of Transport) has indicated that under the Victorian Government's Voluntary Pricing Protocol (VPP), VICT is required to provide industry with 60 days' notice of intent to change or introduce new charges which includes detailed justification.
A final notice to industry 30 days' in advance of the change in charges summarising any industry feedback received is anticipated by 1 June 2021.
CTAA is writing formally to VICT under the Victorian VPP process seeking: - Further detailed information on the reasons for the 8.22% increase in the landside Terminal Infrastructure Charge, and why an equal percentage of additional terminal operating costs is not recovered directly from the terminal's main customers, the shipping lines;
- Seeking the withdrawal or significant modification of the quantum of the proposed Premium Slot Fee; and
- An undertaking from VICT to enter into more direct dialogue with Melbourne container transport operators through CTAA and their import / export customers on landside interface issues, including VBS slot allocation arrangements.
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