The Australian consumer watchdog warns
The Australian Competition and Consumer Commission’s (AC
CC’s) annual report on stevedoring operations comes as new terminals are well underway in Sydney and Brisbane.
A new entrant, Hutchison Port Holdings, is expected to commence operations at those ports in 2013.
The ACCC says the developments will be an important and positive step for Sydney and Brisbane’s ports as well as the economies that rely on them.
For many years the watchdog had expressed concerns that persistently high profitability and a lack of rivalry on prices meant stevedoring companies Patrick and DP World faced only limited competition.
If container numbers continued to increase at current rates the Port of Melbourne could face capacity problems, similar to those observed at Port Botany, by as early as 2015, the report said.
The Victorian Government is currently debating how it will provide for future container capacity and increased competition at Melbourne.
“Opportunities for new entry into Australian stevedoring are rare. This makes them all the more important when they do arise,” ACCC Chairman Rod Sims said.
“We would welcome the Victorian government taking advantage of the need for new investment by introducing a third competitor into the port of Melbourne,” Sims said.
The ACCC Chairman further called for more cranes and terminals, and added that “existing terminals need to work harder and faster”.
“Expanding ports bring opportunities for greater competition,” he said.
“Competition should drive the stevedores to invest in a better service,” Sims said. This should see containers being moved off ships at a faster rate, he added.
The ACCC report also found that efficient truck and rail connections to container terminals are important for meeting the challenges of Australia’s growing freight task.
Initiatives at Sydney, Melbourne and Fremantle to improve container flows in and around port precincts are positive signs of progress.
However, the report suggested further options to manage scarce capacity, such as encouraging access to terminals during off-peak times, may need to be considered as container numbers grow.
Source: L&MH
