Shipping Australia’s members have reacted angrily to the proposed increase in container wharfage in Sydney, effective September 1, 2007.
According to Shipping Australia CEO Llew Russell, it has been suggested that part of the increase could be to recover lost revenue due to the NSW government’s decision to move cars and break bulk cargo out of Port Jackson over the next twelve months.
While Russell admits that Shipping Australia has no evidence to support that suggestion, at $81.50 per TEU for full imports and $10 per TEU for empty containers through the port, it is certainly the highest import container wharfage in Australia.
“Over a twelve-month period it will result in at least a 30% increase in revenue from wharfage for the Corporation,” said Russell. He added that the Corporation had previously agreed that empty containers are really ships’ equipment that incur costs and no revenue. On that basis, in 1999, the Corporation agreed not to charge wharfage on those containers, but its has apparently changed its mind.
“Many container imports are used in export processes, so that there will be a flow-on in cost for at least some exports,” said Russell.
“Part of the reasons given for these large increases was to support funding of the planned infrastructure investment at Port Botany,” said Russell. “This raises the question of whether the additional revenue raised for this purpose should not be allocated to a special infrastructure fund so that it can be monitored closely and - hopefully - charges reduced again when the infrastructure cost recovery is completed.”
Russell pointed out that these charges come on top of announced increases in other container port charges in Melbourne, Adelaide and Fremantle.
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