Freight News: RFNSW Welcomes ACCC Examination of New Port Taxes

RFNSW WELCOMES ACCC EXAMINATION OF NEW 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”, leaving transport carriers with higher operating charges and the inability to switch to other stevedores.

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 5 to 6 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 without consulting RFNSW or other industry groups. Charges were justified by 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.

Read the Monday 6 November issue here.