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Prime Mover Magazine


RFNSW welcomes ACCC examination of port taxes

Road Freight NSW (RFNSW) has welcomed the ACCC’s acknowledgment that infrastructure taxes imposed by DP World and Patrick “raise a number of issues for the port supply chain”.

In its 2016–17 Container Stevedore Monitoring Report released yesterday, the ACCC said the taxes “could earn DP World and Patrick a combined $70 million in revenues, which would be equivalent to a five to six per cent increase in unit revenues”.

According to the ACCC, “it is concerning that truck and rail operators face these higher charges but are limited in their ability to take their business elsewhere”.

The stevedores announced the new taxes earlier this year, claiming that increases in rent, land tax and rates were a ‘cost burden’ that could no longer be absorbed and that the increased surcharges would be used to fund new infrastructure.

According to RFNSW, the ACCC noted “…overall unit costs for both stevedores remain stable. The ACCC will be interested to see whether these infrastructure charges are used to improve landside facilities beyond business as usual levels”.

“We’re pleased that the ACCC has listened to concerns raised by RFNSW about the affect port taxes have on our members," said RFNSW General Manager Simon O’Hara.

“It’s encouraging that the ACCC has acknowledged the taxes are an issue for the port supply chain and that it will fully examine the impact of the charges in its 2017–18 stevedore report.”

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