Patrick & VICT Infrastructure Charge Increases

Patrick & VICT Infrastructure Charge Increases

Patrick & VICT Infrastructure Charge Increases

Patrick & VICT Infrastructure Charge Increases

Patrick Terminals in Melbourne, Sydney & Brisbane, as well as Victoria International Container Terminal (VICT) in Melbourne, have announced further hefty landside infrastructure charge increases from March 2019.

The hefty increases equate to 73.69% in Melbourne; 88.57% in Sydney; and 86.93% in Brisbane compared to the existing (2018) charges.

Patrick Terminals continues to claim that these massive increases are necessary to “recover a proportion of costs that relate to:

  • Capital investments and commitments made to dedicated infrastructure that services our landside interface operations;
  • Excess charges over CPI that relate to our property and property related costs … and
  • Maintenance and operational costs.”

Despite these claims, it is clear that Patrick has adjusted its landside infrastructure charges aggressively to remain competitive in shipping line contract negotiations against its major stevedore rival, DP World Australia, and the other stevedores on Australia’s east coast.

Victoria International Container Terminal (VICT):

At least with VICT, they have no pretence about added landside costs. They have simply claimed that “rebalancing allows VICT to remain competitive in the market, whilst continuing to provide shipping lines and shippers with leading service levels and a viable alternative container terminal in Melbourne.”

So, the massive 77% increase over the current infrastructure charge  has nothing to do with landside infrastructure provision or improvements at all.

VICT is still only a “part-time terminal” due to its limited opening hours for landside exchange. Perhaps such a massive increase in charges levied on landside operators should be accompanied by longer operating hours, particularly at night and on weekends?