The Australian Logistics Council (ATC) and Victorian Transport Association (VTA) have both welcomed the Victorian Government announcement that fees at the Port of Melbourne would remain at 2014-2015 levels or increase only by CPI, but says the outstanding issue of proposed port rent still needs to be resolved.
According to the ALC, proposed rental increases is the big issue that will impact on the future competitiveness of the Port of Melbourne.
“We welcome the fact that the Victorian Government has listened to the concerns expressed by the logistics industry around port fees and charges, in particular, its decision to freeze export fees next financial year, with an intention to reduce them over the following four years,” said Michael Kilgariff, ALC Managing Director.
“However, the excessive rents proposed remains an ongoing issue, and if not resolved sensibly, will have a detrimental impact across the supply chain.
“Significant increases to port rents will push up the price for users of the port, costs will be passed on to consumers and make it harder for local manufacturers to compete.”
In relation to the legislation tabled in Parliament, Kilgariff said ALC supports asset recycling where it is in the community’s long-term economic interests.
“ALC supports the long term lease of the Port of Melbourne, including the Government’s plans to offer a 50-year lease for the port as well as its proposal for the Victorian Essential Services Commission to provide regulatory oversight – both of which are sensible policy propositions.
“The Government’s proposals in relation to these issues demonstrate it has listened closely to industry’s concerns – we look forward to industry’s concerns also being recognised by the Port of Melbourne in relation to proposed rental increases,” he concluded.
Meanwhile, the Victorian Transport Association also supported the announcement. “So much of the infrastructure spending in the Victorian Budget is tied to port sale proceeds so we are encouraged the Government has reconfirmed up-front lease proceeds will go into the Victorian Transport Fund,” said VTA CEO, Peter Anderson.
“It is vital that as a state we continue to grow this fund so that important infrastructure projects and spending is unimpeded, and that Victoria can remain competitive with other states as a hub for freight and logistics.”
Mr Anderson also welcomed the Government’s decision to cap rate increases on prescribed port related costs, as originally advocated by the VTA.
“Capping rate increases on prescribed port related costs to CPI for the first 15 years of the lease is good news for freight operators because it will provide them the certainty they need to confidently invest in port assets, knowing port costs will not exceed inflation.” Mr Anderson said the VTA would continue to seek clarity from the Government and roads authorities about High Productivity Freight Vehicle access into the new Webb Dock facility under construction. “It is vital that road infrastructure into the ports area can accommodate High Productivity Freight Vehicles into the future, in terms of its design and ability to safely handle future freight tasks.
“We will continue to advocate for this important need to be met, especially with respect to the West Gate Distributor and Transurban’s proposed Western Distributor project, should it proceed.”