RF NSW to ask for new port tax to be delayed
- News Feed
- Tuesday, 20 June 2017
A SECOND stevedore port tax imposed on carriers using Australia's Sydney terminal is yet another blow to hard-working trucking operators, says Road Freight NSW (RF NSW) ñ and it will lobby government to delay it.
Patrick has announced that from 10 July, a levy of A$25.45 per container will be imposed for transport movements at the Port Botany terminals. The company claims increases in rent, land tax and council rates are a "cost burden" on operations which it "can no longer absorb". Carriers will be invoiced through the 1-Stop Vehicle Booking System with 30-day terms.
This latest price hike follows DP World Australia's "infrastructure surcharge" of A$21.16 per container, which was introduced in April.
RF NSW general manager Simon O'Hara described Patrick's new levy as blatant cost-shifting.
"When DP World Australia imposed its tax back in April, RF NSW was extremely concerned that it was only a matter of time before other stevedores got in on the act. Unfortunately, our warnings have come true," he said.
"Patrick blames rising terminal costs for this new unilateral charge, but surely they can look at improving their own operational efficiencies, rather than cynically shifting costs on to carriers?
"We believe the tax will probably be used to offset the costs of ongoing privatisation of the terminals.
"There is little doubt this additional tax will hit many smaller, family-owned trucking companies that already suffer as a result of the DP World Australia levy and other cost pressures, like rate changes to the General Carriers Contract Determination (GCCD).
"Patrick even acknowledges this in its letter announcing the levy, saying it "recognises these charges may impact our transport and logistic customers' working capital requirements".
"When the DP World Australia tax was introduced, some of our members reported that they stood to lose up to A$150,000 per year. We dread to think what this latest charge is going to do to their operating margins."
O'Hara said RF NSW had sought a meeting with Patrick and will be calling on the NSW government to stop the new tax being imposed until consultation is undertaken with industry.
