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Patrick Terminals – Landside Access & Terminal Ancillary Charges: Effective from 9 March 2020   

 

As expected Patrick have announced increases to various Landside Access and Terminal Fees, effective 9 March 2020.

Following is the Announcement from Patrick.

Patrick has completed a review of its Landside charge (previously Infrastructure surcharge) and other Terminal Ancillary charges. The Landside charge, which recovers a portion of the full costs associated with providing landside operations, is essential to continue to provide our customers with superior and efficient landside service levels.

The Landside charge recovers a portion of the costs that relate to:

• capital investments and commitments made to dedicated infrastructure that services our landside interface operations. Patrick continues to make significant capital investment and commitments for the benefit of its customers

• maintenance and operational costs associated with providing our landside interface operations and

• property and property related costs

As part of the review of the Landside charge, and in response to government and key stakeholder feedback, it has been decided to differentiate the fees charged between import and export containers. This approach recognises the significant challenges currently being faced by our exporters from drought and bushfires.

Accordingly, effective from 9 March 2020, the following Landside charges will apply on full containers that enter and leave Patrick’s terminals:

Import Containers

• Sydney $114.50 per full container

• Fisherman Islands $110.00 per full container

• East Swanson Dock $125.80 per full container

• Fremantle $50.00 per full container

Export Containers

• Sydney $82.50 per full container

• Fisherman Islands $82.50 per full container

• East Swanson Dock $82.50 per full container

• Fremantle $25.00 per full container

The Landside charge will be applied to both road and rail transport operators for all full container movements, both import and export, made at the Terminals. Road operators will be invoiced electronically via 1-Stop while rail operators will have the charge separately itemised on their rail invoice.

In addition, Patrick has adjusted its other Terminal Ancillary charges. The latest Landside and Terminal Ancillary Tariffs have been published on Patrick’s website (www.patrick.com.au). Container Operator Terminal Ancillary Tariffs are available on Patrick E-Link.

We remind customers that ongoing access to the Terminals is conditional upon prompt payment in accordance with Patrick’s standard terms and conditions.

We regret this change to our cost structure but without sacrificing infrastructure investment and further performance improvements, we have been left with no alternative in the current economic challenging environment.

Please contact your Patrick representative should you wish to discuss these changes.

Yours sincerely,

Michael Jovicic

Chief Executive Officer

Patrick Terminals

Link -  Patrick Schedule of Charges Effective 9 March 2020 -  SYD, MEL, BNE, FRE

 

AFIF Comment

AFIF is restricted in commenting on the quantum of fees applied by service providers, however in terms of principle, the inexorable rise in fees applied by the stevedores at the Landside continues unabated.

Infrastructure surcharge increases are scaling ever greater heights.

Patrick has decided to split the infrastructure surcharge into a lower rate for export containers and a higher rate for import containers.

AFIF supports a lower rate for exports, which will assist beleaguered exporters dealing with drought and bushfires.

However, it appears the price of this support is borne by importers and Australian consumers with higher import infrastructure levies.

AFIF accepts the stevedores need to recover costs and a return on their investments to deliver a profit for shareholders, however the increases are consistently in double digit percentages and out of step with Australian business conditions.

The stevedores’ ongoing increases in landside charges, to support “infrastructure investment and rebalancing revenue from water side to land side to account for landside costs”, is a well-worn path.

AFIF has highlighted on previous occasions, the stevedores are in a pseudo-oligopoly position whereby the increases in landside charges are unrestrained. The charges are non-negotiable. The ACCC has limited power to influence stevedores’ behaviour.

Is there a willingness by State governments to take action, beyond the Pricing Reviews, Inquiries and Industry Engagement, which ultimately tell us what we already know? ie. contained in the ACCC Container Stevedoring Monitoring Report 2018-19

AFIF and industry participants will not give up and continue to lobby governments to legislate a cap to this unrestrained practice.

Regards

AFIF Team