PUBLIC HEARING TRANSCRIPT NOW AVAILABLE
As outlined in our recent member notice FTA / APSA provide evidence to the Productivity Commission, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) were privileged to be given the opportunity to present at the Productivity Commission's public hearing on Friday 4 November 2022 in a vital part of its review of Australia's Maritime Logistics System. The questioning was relatively consistent to all witnesses, primarily focussed on industrial relations, Terminal Access Charges, container detention, shipping competition and Australian ports' performance - the FTA / APSA position on these matters were clearly articulated in line with member feedback – refer to the official hearing transcript (pages 43 to 51 and pages 65 to 69).
SHIPPING AUSTRALIA ATTACK ON THE ROAD TRANSPORT SECTOR
The commentaries from all witnesses make for interesting reading, however, one of the more fascinating highlights was the onslaught from Shipping Australia Limited against "dirty" road transport operators providing the rationale for stevedores to maintain Terminal Access Charges (TACs).
This messaging was clearly not made in the heat of the moment, but was a deliberate scripted position representing the views of their shipping line members – a position reiterated in a recent public commentary titled Trucking industry should bear its full costs; further subsidies for trucking is bad policyWhile we do not want to again write "war and peace" in response to these statements, it is sufficient to note the Australian Competition and Consumer Commission (ACCC) Stevedore Monitoring Reports referencing the fact that shipping lines are the beneficiaries from a reduction in stevedore quayside rates which are largely being offset by stevedore landside charges.
It is also important to note that the TAC is not just imposed on road transport operators, it is also equally applied to rail.
In a nutshell, it is clearly a means of stevedores gaining revenue from third parties without having to enter negotiations with their commercial client. Foreign owned shipping lines are clearly the winners, with savings adding to multi-billion dollar profits proudly reported in recent years.
REFORM TO SCRAP TERMINAL ACCESS CHARGES
Whilst we remain confident that the Productivity Commission will support the FTA / APSA long-held position by retaining its draft recommendation for regulation against TACs, we will ultimately need the federal government to support this with legislated reform.
In a fascinating parliamentary development, Senator Glenn Sterle referenced his support for the Productivity Commission's draft recommendation to regulate against TACs and appeared particularly agitated by the Shipping Australia Limited public policy position stating "thieving internationally owned shipping lines" are "committing white collar crime" and "getting away with murder" by administering TACs; in essence that the Productivity Commission has exposed a rort "the emperor's clothes have fallen off" – refer HERE |