In Queensland, the common feedback from port users post privatisation was that rental prices had soared at renewals. A new Port Access Charge was introduced in 2011 on cargoes that are imported or exported over Fisherman Islands wharves to recover the costs of upgrading and maintaining the Port of Brisbane Motorway.
Under the legislation authorising the Port Botany and Port Kembla privatisation transaction, the new owner was given the right to charge rent and specified port charges (such as site occupation, wharfage and infrastructure charges).
While a pricing monitoring regime has been established to ensure the Government’s oversight over the setting, increase and publication of charges, it is questionable whether there are sufficient regulatory measures to prevent large price increases. The new owner is also permitted to levy a new ‘infrastructure charge’ on port users.
To make the sale attractive, the Government removed the cap on the amount of cargo that can be moved through Port Botany each year. This will mean a massive increase in trucks in and out of Port Botany. Currently, over three-quarters of containers are transported to and from Port Botany by road.
The goal of the Government is to transport 40% (or 1.28m teu) of the containers in and out of Port Botany by rail by 2017, through the new Enfield Intermodal Logistics Centre scheduled for operation in the 3rd quarter of 2013, and the new Moorebank intermodal facility due to commence operations in late 2017. With container throughput predicted to grow to 7.5m teu by 2030-31, urgent action is needed from the NSW Government to upgrade the M5 East motorway and to develop a new F3-M2 link.