TERMINAL ACCESS CHARGES - supplementary submission to the Productivity Commission

Despite witnessing the failings of the Voluntary Port Performance Model (VPPM), National Transport Commission (NTC) announced the national voluntary guidelines for applying landside stevedore infrastructure and access charges at Australia’s container ports last 31 March 2022 embracing the hopelessly flawed model introduced by the Victorian Government setting a new standard for adoption by state governments nationally.

And so, Together with Australian Peak Shippers Association (APSA), we have provided a supplementary submission to the Productivity Commission calling for regulation to end the scourge of unfair Terminal Access Charges.

We all have to understand that this matter is not confined to stevedores only, As the current situation worsen, Escalation of such voluntary performance arrangements also poses the significant risk of giving tacit approval to this unwarranted cost recovery method on third parties.

Not to mention the continuous significant increase on charges of empty container parks (and now LCL Depots) to transport operators who in turn are understandably adding administration fees that are cascading down the supply chain.

Yet, despite the fact that we have severe capacity constraints, record high freight rates, container detention penalties, depot congestion and shipping line surcharges, our government representatives are left scratching their heads unable to answer why supply chain costs continue to spiral out of control fuelling inflationary pressures across our economy.

NEED FOR REGULATION

Our supplementary submission to the Productivity Commission amends the original recommendation 4 (calling for a broader scope of the NTC review) to now reads as follows:

REVISION TO RECOMMENDATION 4 (regulation of Terminal Access Charges) – introduction of an appropriate regulatory framework to force stevedores (and empty container parks) to cost recover directly against their commercial client (shipping line) rather than via third party transport operators